Participation in the Community Macroeconomic Support Programme VIII

completed

The project Participation in the Community 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 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 KfW and is allocated directly to the public budget on the basis of agreed targets. The policy dialogue is based on a policy matrix (Performance Assessment Framework, PAF - with indicators derived from the PARP) developed jointly with the donors involved and the Mozambican government (GoM). The quality of governance supported by the program is of particular importance for the granting and disbursement of the German budget support contribution. The German financial contribution for general budget support for the fiscal year 2013 amounts to a fixed tranche of EUR 5.0 million. It continues the German participation in the financing of the Mozambican government's poverty reduction program. Germany is prepared to provide a further up to EUR 15.0 million in general budget support for the fiscal years 2013 and 2014. 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 program (accompanying measure). For this purpose, contributions totalling EUR 8.0 million are earmarked for the areas of own revenue (contribution to the basket financing of the revenue authority), external accountability (contribution to the basket financing of the Court of Auditors) and for promoting better monitoring of the budget process by the Parliament, civil society and the media in Mozambique.