Decentralisation Contributes to Fight Against Poverty - Guebuza.

from All Africa

Macia, - Mozambican President Armando Guebuza declared on Friday that this year's elevation of the town of Macia, in the southern province of Gaza, to municipal status will speed up its development and contribute significantly to the fight against poverty.

Macia is one of ten towns granted municipal status this year, bringing the total number of municipalities in Mozambique to 43. Elections will be held for mayor and for members of the municipal assemblies in all of them on 19 November.

Speaking at a rally in Macia, Guebuza said that with these measures of decentralisation the population will participate in the exercise of local power and management.

After overthrowing colonialism and achieving peace, the current challenge facing Mozambique is the struggle against poverty, the President stressed. He was convinced that, if they remain united and determined, the Mozambican people can overcome this challenge too.

He said that the government had adopted decentralisation through setting up municipalities, and through the Local Initiative Investment Fund, under which up to nine million meticais (373,000) US dollars is allocated every year to each of the 128 districts. These measures were intended to accelerate the development of municipalities and districts, improving the living conditions of their communities.

But there are serious problems with the Local Investment Fund. In principle, of the nine million meticais, two million is for infrastructure, and seven million is given as loans to individuals or associations with viable projects that can increase food production and generate employment. This is intended to be a rotating fund - the money repaid is lent out again. But most beneficiaries have so far not repaid the loans.

In 2007, the district of Bilene-Macia received 8.6 million meticais from the fund, and it was all spent. However, to date only 173,000 meticais has been repaid.

This year the central government disbursed a further 8.6 million meticais, but the Bilene-Macia authorities have only been able to spend 3.7 million.