Good Governance and Development Sector
Actions under this focal sector aim to provide overall support to national public policy, priorities and its complementary actions, with emphasis on strengthening of core government systems, accountability and macroeconomic management. It also promotes an enabling environment for sound political and economic governance.
Within the area of "Good Governance and Development", the European Union supports the consolidation of the rule of law, essential to consolidate the democracy. Specific support is given to key institutions as the Prosecutor's Office, the Supreme Court and Parliament. Activities for the Anti-corruption service are also reinforced.
Rural Development Sector
The Rural Development focal sector has a two-pronged approach to supporting inclusive growth and poverty reduction in rural areas. EU interventions help, on one hand, to improve food security and nutrition, through increased production, access to food and to markets via appropriate transport infrastructure and, on the other hand, support enhanced rural competitiveness by fostering the conditions for sustainable growth of micro, small and medium-sized enterprises.
The overall objective of the rural development sector is to foster sustainable, inclusive and broad-based economic growth and sustainably reduce poverty in two provinces, Nampula and Zambezia, through: a) improving food security and nutrition status; and b) enhancing rural competitiveness.
In order to contribute towards these objectives, the EU has adopted an integrated approach to rural development, a programme named PROMOVE, with actions geographically concentrated in the provinces of Nampula and Zambezia in order to maximize synergies, economies of scale, and impact.
The PROMOVE Programme
The programme has six components of action, namely Transport, Energy, Agribiz, Nutrition, Biodiversity and Trade.
PROMOVE Transport - € 124 Million
PROMOVE Transport is focused on the rehabilitation of rural roads in the provinces of Zambezia and Nampula. The programme has a strategic relevance to the regional and international integration (Malawi and Zambia) of Mozambique.
The overall objective is to contribute to sustainable, broad and inclusive economic growth through job creation and poverty reduction.
Improvements to road conditions in the project areas enhance the viability of local transport services, leading to increased availability of transport and lowering transport costs and a chain of other benefits related to reduced costs of agricultural inputs, greater rural competitiveness, and higher income generation for families. The most recent example of such benefits is the Milange – Mocuba 190km road, funded by the European Union, which last 110 km were inaugurated in March 2019.
PROMOVE Energy - € 94 Million
PROMOVE Energy is a key component that specifically focus on rural energy services access. Mozambique's current energy access rate is amongst the lowest in the region, with 26% rate connection to the grid. National Electrification Strategy aims to connect at least 50% of the population to the grid by 2030.
ROMOVE Energy will contribute to progress towards the 2030 Agenda goal of securing universal access to affordable energy services by the populations and private sector operators across the country and in particular in Zambézia and Nampula. A programme in two phases has been designed as follows:
Project Preparation Facility (PPF) to achieve and improve access to sustainable and affordable energy to the population and private sector operators, particularly in rural areas, by an enabling environment towards leveraging investments. Projects supported by this Facility should feed financial instruments such as ElectriFI, the Africa Investment Facility (AfIF) or the European External Investment Plan. €10.5 million have been earmarked for this first phase, which started in 2018.
Energy Services Access Programme (MESAP) - This will be the second phase of the EU Access to Energy programme, a continuation to the energy Project Preparation Facility (PPF). MESAP will support direct investment on projects from the first phase, but not limited to it, with the objective of increasing rural electrification. MESAP will consider direct investment on the development of mini-grids and stand-alone solar home systems projects.
Participation of the private sector through innovative financial instruments such as ElectriFi, the Africa Investment Facility (AfIF) or the new European External Investment Plan (EIP) are key for the implementation.
PROMOVE Agribiz - € 68 Million
Improving rural competitiveness in Nampula and Zambezia provinces
In Mozambique, subsistence agriculture often barely meets household food needs. Smallholder production, with low agricultural productivity, is largely not competitive commercially. Emerging farmers face multiple difficulties to operate. For most crops productivity only reaches a fraction of its potential, which is estimated at around one third of the one in neighboring countries.
Under the Rural Development Focal Sector, actions in Nampula and Zambezia will cover a variety of agro-ecological zones with overall favorable production conditions extending over the two development corridors of Nacala and Zambeze valley.
Give that agriculture in these provinces is characterized by small-scale farming, increasing rural competitiveness must combine i) Improving food security and resilience and ii) supporting private sector/business development for economic diversification and inclusive growth. The wider focus will follow three intervention lines:
- Increasing sustainable agriculture development in view to enhancing food and nutrition security, produce marketable surplus for improved competitiveness of agricultural production, and resilience to shocks.
- Developing rural markets and value chain competitiveness with the aim of fostering economic diversification and the improved availability of services and goods.
- Community development for resilience in view of introducing behavioral changes, fostering social cohesion and gender equality.
Implementation started in 2019.
PROMOVE Nutrition - € 30 Million
Underway since 2017, the 5-year PROMOVE Nutrition programme is a partnership with UNICEF, the National Health Institute and the SUN-Civil Society Network, aiming to address the high levels of stunting in Mozambique.
In Mozambique, the rate of chronic malnutrition (stunting) is considered to be at critical and stagnating levels (43% in 2018). Stunting remains a key public health concern, primarily affecting infants, young children and women of reproductive age. The nutrition component contributes for the coordination and strategic planning for nutrition while scaling up nutrition-specific interventions under the government´s Multi-sector Action Plan for the Reduction of Chronic Undernutrition.
The "essential nutrition package" has a specific focus upon young children and pregnant and lactating women; and finally, the action will strengthen the capacity of government and key stakeholders on multi-sector nutrition information management systems to guide the planning and decision making on nutrition interventions.
PROMOVE Biodiversity - € 13 Million
Nampula and Zambezia provinces are the most populated in the country, therefore, dependency of local population on natural resources for livelihood represents a major concern for biodiversity conservation.
This component aims to protect the biodiversity and contribute to improving the livelihoods of rural communities through sustainable management of natural resources. The program will cover the areas known as Ilhas Primeiras e Segundas and adjacent coastal zones, the Gilé National Reserve and the Mabu Inselberg in the provinces of Nampula and Zambezia. These areas have been selected for their resources are under pressure from local communities' action. The intervention logic of the project will be around four main Result Areas:
1) Institutional capacity;
2) Activities related to community based biodiversity;
3) Sustainable management of natural resources; and
4) Applied research to natural resources management
PROMOVE Trade - € 12 million
This is the only PROMOVE component with a national focus - it aims to support the implementation of trade facilitation measures and the improvement to the business environment by strengthening the government's reforms capacity within the framework of the World Trade Organization and Economic Partnership Agreement (EPA) between the EU and SADC.
In this context, issues such as Technical Barriers to trade will be addressed by supporting the expansion of quality infrastructure services for value chains and strengthening the capacity of the private sector in relation to EPA opportunities.
PALOP-TL and European Union Cooperation Programme
The five Portuguese speaking African countries (PALOP), namely Angola, Cape Verde, Guinea-Bissau, Mozambique and São Tomé and Príncipe, began cooperating mid-1970s, after their independences. In 1985, these countries joined the Africa Caribbean Pacific (ACP) Group and the first EU-PALOP regional cooperation programme started in 1992. In 2007, Timor-Leste joined as the sixth member and PALOP was then renamed PALOP and Timor-Leste (PALOP-TL).
The still on-going 10th EDF PALOP-TL Cooperation programme promotes a "Governance Initiative" with an allocation of €33.1M to reinforce democratic, social and economic governance through the implementation of projects on electoral assistance, private sector support, rule of law, public services, the establishment of the Macroeconomic and Financial Management Institute in Luanda, as well as the support to the PALOP-TL coordination mechanism and a Technical Cooperation Facility to support the implementation of actions.
Two important areas covering the cultural and creative industries and economic governance, particularly on improving public financial management in the PALOP TL, have benefitted from a €26M fund agreed in March 2019 between the EU and PALOP-TL.