Select Committee on International Development First Special Report

Memorandum submitted by the Department for International Development

MOZAMBIQUE (Fifth Report 1999-2000)

Rate of recovery and delivery of donor support

Reconstruction efforts are underway. Almost all the displaced people have returned home.

Estimates are that around US$200m of the US$453m pledged at the Rome Conference for post-flood reconstruction will be spent this year.

DFID support (around £30m) for emergency budgetary support and immediate reconstruction and humanitarian needs, is nearing completion. In addition, the £6m which was pledged at the Rome donor conference for longer term rehabilitation, has been allocated to reconstruction of critical sections of the main north-south highway. This project is underway, and likely to be completed towards the end of 2001. Meanwhile, traffic to Xai-Xai will continue to use the DFID-funded shorter term access routes.

Growth prospects

The impact of the floods has brought the estimate for economic growth this year down from 8-9% to around 6%. Although still impressive, this is lower than the average 10.6% over the last 3 years. However, the large number of infrastructure and rehabilitation works in the country following the floods have actually increased the estimate for economic growth in 2001 from 7-8% to 10.5%[75].

General bilateral programme

DFID's wider objective is to work with others to reduce poverty in Mozambique. DFID's programme has three main strands: budget support; support for country-wide Government-led sector initiatives; and support for projects on the ground in Zambezia Province. Zambezia is one of the most heavily populated and poorest provinces in Mozambique.

In addition to flood-related expenditure, in recent months, DFID has approved the following new expenditure:

    —  up to £40m for budget support (programme aid)
    —  £25m to improve the availability and rational use of essential medicines
    —  £5.5m for Phase 2 of the Customs Reform Project, bringing the total commitment to £16.4m
    —  £4.5m for a country-wide enterprise development project
    —  £2.5m for malaria prevention and treatment in Zambezia
    —  £3.8 for rural water and sanitation in Zambezia

An internal portfolio review will be conducted of DFID's Programme in Mozambique, in April 2001. The effect of the floods and the need to help Mozambique to improve its disaster preparedness will be considered as part of that review.

DFID's regional office in Harare (DFIDCA) is currently undertaking a management review. The purpose of this is to see whether the balance and skills mix of staffing between the regional office in Harare and its in-country offices in Maputo, Lilongwe and Lusaka is right. The Economic Adviser for Mozambique is now based in Maputo, joining four other development professionals there.

75   This figure also includes the impact of the early completion of a large aluminium smelter, Mozal Back

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