Fresh rains threatened flood relief operations in Mozambique yesterday, as the country warned that moves by Western creditor nations to defer debt service payments failed to meet its needs.
The Foreign Minister, Mr Leonardo Simao, welcomed an initiative by the Paris Club of creditor nations to defer all of Mozambique's debt servicing payments - which amount to around $1.5 million a week - until a global accord cancelling the country's debt was agreed. But he added: "We are satisfied that this step has been taken in relation to bilateral debt, but it falls short of our expectations. Our request was for total cancellation."
Regional analysts said the measure would help Mozambique, one of the world's poorest countries, to help recover from a month of devastating floods which have left about 500 people dead and displaced at least 300,000.
"On first reading, it is going to be positive news for Mozambique in light of what's happened this year," Mr Mike Moran, Treasury Economist at Standard Chartered in London, said. "If they do get the relief we should see a rapid recovery by next year."
Despite an external debt burden of around $8.3 billion, before the floods, Mozambique had boasted one of Africa's fastest-growing economies with annual growth of more than 10 per cent during the past three years.
The Paris Club's decision should help to free up funds for Mozambique to begin the massive task of rebuilding towns, roads and railroads devastated by a month of flooding.
Japan donated $4.65 million yesterday for rebuilding 15 bridges and for buying rice, while the Pharmaceutical Manufacturers Association of South Africa donated 32 tons of medicines and supplies.
But rain which fell heavily in some southern regions on Wednesday and continued for a fourth day in the north around Maputo yesterday presented serious logistical problems for the international relief effort.
Aid workers said a major road from Beira to Save, in a badly affected region, along which aid teams carried up to 50 tonnes of food a day, was closed because of the rain.
The road was unlikely to reopen for another week, the World Food Programme said, and only if the rain stopped. "Rains are of concern in Beira and therefore we cannot rely on truck transport. We could start to run into problems if we can't get access after 8 to 10 days."
Most countries involved in airborne relief efforts have said they would continue for about two weeks. Time is now running out and logistics experts are worried that complications will arise if the air relief is reduced.
Aid workers say the biggest immediate threats to the poverty-stricken country are malnutrition, particularly among children, and water-borne diseases such as cholera and malaria.