EU, Mozambique sign cooperation accords

(MAPUTO) - The European Union and Mozambique on Thursday signed three cooperation agreements worth 37 million euros in the capital Maputo.

The Local Economic Development Project is the largest of the agreements, with a value of 23.2 million euros ($28.5 million).

It is to strengthen the production and competitiveness of local micro, small and medium-sized enterprises and enhance work with provincial, district and local bodies in areas such as public investment in infrastructure.

Nine million euros have been allocated for a programme to strengthen the rule of law and public accountability, promoting good governance mechanisms and supporting the Parliament, Supreme Court, and Prosecution Service.

The Support to Non-State Actors in Mozambique project which has a budget of five million euros will promote governance and citizenship and improve dialogue between civil society groups and public authorities.

"We have come here with a desire to reaffirm our promises with this country," the president of the European Commission, Jose Manuel Barroso, said. "It has made great progress in terms of national reconciliation, consolidation and institutionalisation of democracy and social and economic development."

"We are very satisfied to be partners with Mozambique because we are seeing results like the signing of the three agreements today."

Barroso signed the accords with Mozambique's President Armando Guebuza.

Last week, the Dutch foreign ministry announced it would stop funding Mozambique's general budget, insisting the decision was not only linked to a report on the country's questionable governance record and anti-corruption drive.

Instead of contributions to the country's general budget pool, funds will now be diverted to support specific sectors.

EU Relations with Mozambique