EU and the Government of Mozambique sign a Financing Agreement worth a total of €5.2 million to support the Action Plan for Food Production through PROAGRI (22/10/2010)

The Government of Mozambique was recently allocated €5.2 million in sectoral budget support as part of the EU's rapid response to the rising food prices in developing countries (Food Facility) . The Government of Mozambique and the European Union signed the Financing Agreement for this commitment on 22 October, at the Ministry of Foreign Affairs and Cooperation.

Head of Delegation, Mr Glauco Calzuola at the press conferenceHead of Delegation, Mr Glauco Calzuola at the press conference

The rise in fuel and food prices in 2008 was strongly felt on the international markets and badly affected access to and availability of food in various regions of the world. To support the efforts of the countries worst hit by the fuel and food price crisis, the European Union (EU) created a global fund of €1 billion for food production (Food Facility).

The EU will make €22.2 million available to Mozambique from this global fund, to be used between 2009 and 2011. This amount is to be used to support the initiatives of the Government of Mozambique: the Action Plan for Food Production (Acção para a Produção de Alimentos - PAPA) intended to increase agricultural production and create the conditions to enable this production sector to respond to market opportunities.

With the signing of this Financing Agreement the total amount set aside for Mozambique has been awarded, as agreements with two United Nations agencies (the International Fund for Agricultural Development (IFAD) and the Food and Agriculture Organisation (FAO)) worth €12 million have been in place since 2009 and three contracts have already been signed with the NGOs Helvetas, Save the Children and CESVI for a total of €5 million.

This financing is on top of the approximately €15 million that the EU makes available annually to agricultural sector via MINAG as part of PROAGRI.