By Elizabeth Blunt BBC News

An audit showed that the aid, part of Sweden's educational assistance programme, had been spent in ways not covered by the agreement.

This kind of repayment is not unprecedented, but it is extremely unusual.

The money was spent on scholarships for nearly 80 individuals, including close relatives of officials.

But this was not actually the problem.

The problem was that the money should not have been spent on scholarships at all.

'Firm position'

The Swedish Development Agency, Sida, confirmed that it had asked the Mozambique government to repay the money, and that the government had agreed.

A Sida spokesman said that Sweden took what she called "a quite firm position" on this kind of situation.

Although the Swedish public had a high level of willingness to give development aid, she said, their willingness was dependent on the money being properly used.

Even so, it is unusual for Sweden - or any other donor - to actually ask for its money back, although it has happened in cases involving embezzlement and fraud.

The most notorious instance involved European Union aid to the Ivory Coast, where the EU demanded, and got, a refund of around $28m.