Participation in the Community macroeconomic support programme VII

completed

The project Participation in the joint programme for macroeconomic support in Mozambique contributes to the implementation of the Mozambican poverty reduction strategy (Action Programme for the Eradication of Poverty - in Portuguese abbreviation PARP). It is part of a joint financing of now 11 bilateral and three multilateral donors who have made budget support commitments for 2013. Mozambique has been receiving general budget support since 2001 (since 2004 from Germany). The financing of the German budget support contribution is based on the entry criteria for the granting of budget support in accordance with the BMZ budget support concept and an analysis of the fiduciary risks by the KfW and is entered directly into the public budget on the basis of agreed objectives. The policy dialogue is based on a policy matrix (Performance Assessment Framework, PAF) developed jointly with the participating donors and the Mozambican government (GoM) - with indicators derived from the PARP. The quality of governance supported by the programme is of particular importance for the award and disbursement of the German budget support contribution. The German financial contribution for general budget support for the 2013 fiscal year amounts to a fixed tranche of EUR 5.0 million. It continues the German participation in financing the Mozambican government's poverty reduction programme. Germany is prepared to provide a further up to EUR 15.0 million in general budget support for the 2013 and 2014 fiscal years. As an additional contribution to the Mozambican government's reform course and to reduce fiduciary risks, the budget support contribution is accompanied by German participation in the public finance reform programme (accompanying measure). For this purpose, contributions totalling EUR 8.0 million are planned in the areas of own revenue (contribution to basket financing of the revenue authority), external accountability (contribution to basket financing of the Court of Auditors) and to promote better monitoring of the budget process by the parliament, civil society and the media in Mozambique.