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Vol 55 No 13

Published 27th June 2014


Mozambique

Aid row escalates

Britain and Germany cut budget support over a tuna-fishing company and other deals. Ahead of the elections, Frelimo is not giving in

The governing Frente de Libertação de Moçambique (Frelimo) is engaged in an increasingly bitter row with foreign donors over loans and public spending. Britain and Germany, which together with others finance about 30% of government spending, have cut their budget support for next year. With the advent of the oil and gas bonanza in mind, Maputo has been borrowing and spending massively with scant regard for what it sees as irksome foreign demands for probity, accountability and fiscal discipline. Some donors say those loans are of questionable value and low transparency – and that much of the spending does not reflect development priorities.

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