Germany maintains cut of direct support to Mozambique state budget

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Germany maintains cut of direct support to Mozambique state budget

12:22 CAT | 31 Mar 2017

O País / German ambassador to Mozambique, Detler Wolter in a visit to CTA

Three years after taking the decision to cut direct support to the Mozambican state budget, the German government has reaffirmed its position and says its focus will remain on financing concrete projects.

The information was advanced yesterday by the German ambassador to Mozambique, Detler Wolter, after a visit to the Confederation of Economic Associations of Mozambique.

Ambassador Wolter held a meeting with the CTA’s board of directors where he reiterated the European country’s 2014 position on withholding direct support to the Mozambican state budget, saying that Germany would continue to invest in specific projects only.

“In 2014, our government decided to cut the direct support we provided to the Mozambican state budget, so as to give room for the funding of specific projects,” Wolter said. The ambassador also said that the decision was taken by the German parliament in view of international circumstances.

Vice President of the Mozambique Confederation of Economic Activities, Prakash Prehlad, said the ambassador’s visit was important to the CTA, and contributed to the improvement of the business environment in the country.

Germany is a focus for private sector support, Prehlad said, and projects funded by Germany in Sofala, Manica and Inhambane have been ongoing for more than five years.

A German business delegation is expected to exchange experiences with local entrepreneurs from 9 April on. “We see great opportunities in Africa and Mozambique in particular, so we are convinced that trade between the two countries will increase,” Wolter said.

Source: O País