New MOU for GBS Signed in Maputo by 14 Development Partners

Ambassador William Carlos signed today a Memorandum of Understanding (MOU) for the Provision of General Budget Support, along with 13 other agencies and countries providing General Budget Support to Mozambique, thus confirming Ireland’s commitment to support the government in achieving its development and poverty reduction goals for Mozambique.

The Memorandum of Understanding (MOU) establishes the key focus of the General Budget Support (GBS) and defines underlying principles that must be in place for GBS to operate, including peace and democratic political processes, respect for human rights and the rule of law, good governance and probity in public life, prioritising poverty reduction and inclusive growth in the state plans and budgets, and pursuing sound macroeconomic policy.

Ireland has been providing General Budget Support to Mozambique since 2002, and is proud to have contributed to financing successive poverty reduction plans in the country. General Budget Support has been found by independent evaluators to have increased spending on key poverty-reduction priority areas, as well as contributing to improving the overall management of state resources in the country.

On the occasion of the signing the ambassador of Portugal, representing the donors, highlighted that GBS has grown from around 160M USD in 2004, when the first MOU for GBS was signed, to 273M USD this year, with predictions that this will be 312M USD for next year. He suggested that the signing of the MOU reflected a basis of trust between the Government of Mozambique and the GBS donors, while pointing out that in a few years, due to expectations of increased revenues, Mozambique may no longer need GBS funds. He suggested however that structural reforms should take place in the areas covered by the current MOU, to enable Mozambique to prepare for a competitive and open society, and that donors are available to support the Government of Mozambique in this process.

The Minister of Economy and Finance, Adriano Maleiane, thanked the GBS partners and stated that GBS has been, over the last 11 years, “a vital contribution for the implementation of the Government’s programme and development agenda”. He added that going forward, GBS will be a support to the achievement of the Sustainable Development Goals to be approved later this month.

Maputo September 21st, 2015