The European Union is providing EUR 100 million to Mozambique in the form of budget support to help address the socio-economic impacts of Covid19, particularly on education, health, and social protection sectors.
The EU Ambassador and the Minister of Foreign Affairs signed the budget support programme in Maputo, which is part of the European Union’s global response to the pandemic, focused on mitigating its devastating effects and supporting partner countries’ efforts to address the immediate health needs and subsequent economic crisis.
This new EU programme will provide the Government of Mozambique with short-term financial assistance to tackle the economic and social impact of the crisis, maintain vital state functions and protect social spending, thanks to effective delivery of basic services to the population.
The funds under the programme will help boost Mozambique´s macroeconomic stability, financial sustainability, fiscal space and resilience to further external shocks. It will also support progress in public financial management reforms, with a particular focus on greater transparency and accountability.
In addition to budget support, the programme will provide technical assistance for government monitoring of COVID-19-related spending and, by working with civil society, will strengthen local accountability processes.
The programme is part of the Team Europe global response to COVID-19, which, in Mozambique, has mobilised approximately € 170 million by the EU and its Member States to tackle the impacts of the coronavirus pandemic.
The EU and Mozambique enjoy a close longstanding partnership under the ACP-EU Cotonou Agreement focused on promoting sustainable development, peace and security, democracy, the rule of law and human rights, as well as tackling regional and global challenges. From 2014 to 2020, over € 700 million has been mobilised through the European Development Fund to help improve the lives of people across Mozambique.