
The signing of a new Memorandum of Understanding (MoU) between, on one side, the Government of Mozambique, and, on the other, the representatives of sixteen Governments and three major multilateral agencies, on 18 March 2009, represents the culmination of negotiations over one year and the confirmation of an effective partnership of ten years.
The MoU carries a solemn commitment by the signatory parties to implement its provisions in full, as well as obligations for both sides. For example, the Government commits itself to continued poverty reduction and to adherence to fundamental principles of democracy and respect for human rights. The PAPs pledge to hold themselves annually to account against the terms and commitments in the MoU, a form of mutual accountability prioritised in the Accra development conference last September. Under the MoU there will continue to be an Annual Review of Government and partner performance and equally an annual meeting to set the benchmarks against which the Government and partners will be measured in the following year (the Mid-Year Review), for instance as regards the mutual commitments on improving governance and combating corruption.
This new MoU was developed to capture the changes and improvements in commitments, relationships and work methods since the first one was drawn up in 2004. In the view of its signatories, this MoU does represent a major evolution from its predecessors. They see it as representing a best balance between the promotion of ownership of the management by the Government of Mozambique of budget support finance, and the oversight needed by the nineteen partners for the provision of their taxpayers' and agencies' funds.
The re-commitment to providing budget support for another five years is a reflection of an acceptance by both sides of the enduring quality of their partnership and their shared commitment to the Mozambique's economic and social development, to the continuing reduction of absolute poverty and to the achievement by Mozambique of the Millennium Development Goals.