District Development Fund Default Rate
A study of Chimbonila District, Niassa Province - Mozambique
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The book analyses and describes the implications of the non-fulfilment of financial obligations (default) by beneficiaries of the District Development Fund (FDD) in Chimbonila. It should be noted that the FDD was conceived in Mozambique, within the range of Public Policies for poverty reduction, with the strategy of transforming the district into a development pole involving local communities, in the financing of entrepreneurial initiatives and food-producing activities, job creation and income generation, in ways that encourage local development. The default rate of the FDD in the district of...
The book analyses and describes the implications of the non-fulfilment of financial obligations (default) by beneficiaries of the District Development Fund (FDD) in Chimbonila. It should be noted that the FDD was conceived in Mozambique, within the range of Public Policies for poverty reduction, with the strategy of transforming the district into a development pole involving local communities, in the financing of entrepreneurial initiatives and food-producing activities, job creation and income generation, in ways that encourage local development. The default rate of the FDD in the district of Chimbonila is 99%. The lack of strict compliance with the eligibility criteria (selection, monitoring and evaluation) of projects, together with the beneficiaries' lack of knowledge of business management tools, are pointed out as causes of failure of the FDD strategy. It is proposed that the government redefines criteria for greater incentive, stimulus and supervision and, obviously, the involvement of the private sector and other living forces of Mozambican society, including local leaders
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