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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