Foreign donors slash Mozambique budget over graft

Maputo – Foreign donors have cut aid to Mozambique’s government by 11 percent compared to last year amid concerns over corruption, an official said Friday.

The group of donors who contribute aid directly to the southern African nation’s coffers pledged $275 million in aid this week, down from $309 million last year.

Norway decided to stop its commitment altogether, joining Belgium, the Netherlands and Spain who all pulled out from direct budget support recently.

Italy’s ambassador Roberto Vellano said “concerns over fiscal transparency, fighting corruption and other outstanding issues” had led “some partners to think they could no longer confirm their participation in this kind of support”.

Germany and the United Kingdom have delayed committing funds and it is unclear whether they will do so before the end of the year. Pledges are usually calculated in May for the following year.

Mozambique, a country still struggling to rebuild its infrastructure after a devastating civil war that ended 21 years ago, has seen foreign aid dwindle steadily from over half of its government budget in 2010 to a third last year…

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