The European Union allocates EUR 39.5 million to support civil society organisations, the energy sector and public financial management reforms in Mozambique
Today, the European Union is signing the Annual Action Plan 2017 for EUR 39.5 million to assist Mozambique in three different areas: (1) the promotion of stronger citizenship, (2) the improvement to access to energy and (3) the support of public financial management reforms. This support, provided from the 11th European Development Fund, aims ultimately to contribute to more inclusive and sustainable growth in the country.
Commissioner for International Cooperation and Development, Neven Mimica, said: "The three programmes adopted today are key for attaining the strategic objectives of our Partnership with Mozambique, namely to promote democratic accountability by making the system more responsive to and protective of citizens, as well as to strengthen the sound management of domestic resources, including public finance. Moreover, with these programmes, the EU will address the objective of poverty alleviation through measures essentially targeting participation and accountability as well as sustainable and inclusive growth".
While Mozambique's Civil Society is becoming increasingly active, at local level, the capacity of many advocacy and community-based organisations, as well as provincial associations, remains limited. The Support Programme to Non State Actors, which had started under the 10th EDF programme in 2013, aims at promoting dialogue between Civil Society Organisations (CSO) and public local and national authorities, reinforcing the role and capacities of CSO, enhancing the related legal framework, and promoting an enabling environment for their effective participation (22 M EUR).
Mozambique is endowed with an impressive combination of renewable energy sources. However, a set of difficulties barriers still hampers the development of these vast untapped resources. As a result, the country has one of the lowest energy access rates in the Southern Africa Region, with only 26% of the population being connected to the grid. A new EU programme, the Energy Project Preparation Facility (EUR 10.5 million), aims at improving access to sustainable and affordable energy, particularly in rural areas, mainly by facilitating private sector investment in renewable energy by reinforcing Mozambique public institutional capacity, improving the energy sector regulatory framework and supporting the public and private sector in the development of new investment projects.
While Public Finance Management systems and practices in Mozambique are considered as relatively good by independent diagnostics, their impact could be enhanced through better planning and more effective spending and controls. The proposed Public Finance Management programme II is a continuation of institutional strengthening efforts initiated under the 10th EDF in 2012 (for the Ministry of Economy and Finance and the Supreme Audit Institution), with scaling up of more effective capacity building actions. The new programme aims at improved transparency, effectiveness and efficiency of the public resources by focussing on better planning and budgeting and improving the capacities of the external audit function.