This paper evaluates the interactions between actors present in the Mozambican health scene. Analyses are done in its existing aid management mechanism, factors influencing the effectiveness of coordination mechanisms and its outcomes. This study is based on a review of documents and interviews with key government and donor informants carried out in 1997. Mozambique has changed from a socialist state to a market oriented economy. During this transition, a dramatic increase in aid dependence has taken place. The process of aid management has been incremental and innovative, where there's an open-ended process of its budget support. It showed that coordination efforts in Mozambique have paid off even in an unstable environment. However, the progress requires intense and sustained work among the key government and donors. Furthermore, incremental approaches, where donor demands are progressively raised as the system is strengthened. The initiative has come mainly from donors, with the Ministry of Health being receptive and reactive. Successful coordination emerged from trial and error, where it can be ensued when administration has been able to take advantage of donor initiatives. Factors contributing to positive development among donor-recipient relationship are risk-taking, labor-intensive, and a long-term perspective.