US pledges $1.2 billion aid for Mozambique

The United States will grant Mozambique $1.2 billion in aid to fund projects in healthcare, food production and education under a five-year agreement signed this week. The money would also be used to improve governance and deepen democracy, a statement posted on the Mozambican government website said. Growth in the Mozambican economy is expected to slow to 6.5 percent this year, from 7.5 percent in last year as investors delay initiating investments in the recently discovered gas reserves.
Mozambique, one of the world's poorest countries, discovered the reserves off its coast between 2010-2013, offering an opportunity to transform the former Portuguese colony which was ravaged by a 16-year civil war that ended in 1992.