Mozambique’s Minister of Economy and Finance, Max Tonela, has suggested the conversion of foreign debt into health sector investments during an investor conference in Maputo.
This proposal forms a part of potential strategies to garner the required US$900 million (€802 million) for constructing hospitals nationwide.
Other options include robust public-private partnerships and the incitement of foreign direct investment.
Tonela emphasizes that, despite being a low-income country with financial limitations, Mozambique strives to adopt innovative financial mechanisms to fund social infrastructure.
Mozambique’s Government has been gradually elevating funding for the health sector, drawing closer to the target established in the Abuja Declaration by African states.
Data from the past five years reveals increased budget allocations for health, rising from 20 billion meticais (€278 million) in 2017, accounting for 10.7% of the total State Budget, to 43.3 billion meticais (€603 million) in 2022, representing 12.5% of the budget.
Tonela indicates that the plan for 2023 includes devoting 13% of the total State Budget to the health sector.