Swiss Cooperation Strategy Mozambique2017– 2020

Table of content

Abbreviations and acronyms 4

Foreword 5

1 Development context 6

2 Swiss and international cooperation with Mozambique 8

3 Past achievements and lessons learned 2012–2016 9

4 Implications for the Swiss Cooperation Strategy 2017–2020 11

5 Priorities and objectives 12

6 Programme management and implementation 15

7 Programme steering 16

4

Abbreviations and acronyms

ARI Aggregated Reference IndicatorsBICA Agenda Nacional de Integridade nos

NegóciosCHF Swiss francCIP Center for Public IntegrityCPI Centro de Promoção de InvestimentosCSO Civil society organisationCSPM Conflict-Sensitive Programme

ManagementDFID Department for International

Development DNAAS Direcção Nacional de Abastecimento de

Água e SaneamentoEC European CommissionSENAP Southern Africa, East and North Africa,

Occupied Palestinian Territory DivisionEU European Union FDI Foreign Direct InvestmentFRELIMO Frente da Libertaçâo de MoçambiqueGDP Gross domestic productGoM Government of MozambiqueGoTAS Governance, WatSan and Health

Project SDCHDI Human Development IndexICS Internal Control System IMF International Monetary FundINE Instituto Nacional de EstatísticaINOVAGRO Private Sector Project SDCItC Iniciativas de Terras ComunitariasLGMI Local Governance Monitoring InitiativeMBFM Microbanco Futuro MozambiqueMEF Ministry of Economy and FinancesMERV SDC Monitoring System for

Development-Relevant ChangesMISAU Health MinistryMITADER Ministério da Terra Ambiente e

Desenvolvimento RuralMOPHRH Ministry of Public Works, Housing and

Water ResourcesMSD Market Systems Development Approach

(former M4P)

MZN Mozambique, MeticalNGO Non-governmental organisationODA Official Development AssistanceOECD Organisation for Economic Co-

operation and DevelopmentOHCHR Office of the High Commissioner for

Human RightsOMR Observatorio do Meio RuralPES Annual Economic and Social PlanPESS Health Sector Strategic PlanPFM Public Financial ManagementPIPED Plano de Implementação de Política e

Estratégia de DesenvolvimentoPQG Plano Quinquenal do Governo

2015–2019PROGOAS Programa de Governação de Agua de

Saneamento RuralPROSAUDE Health Sector Common FundP4H Social Health Protection NetworkQAD Quadro de Avaliação de DesempenhoRENAMO Resistência Nacional de MoçambiqueSADC Southern African Development

CommunitySAM Social Accountability MonitorSDC Swiss Agency for Development and

CooperationSECO Swiss State Secretariat for Economic

AffairsSERI Swiss State Secretariat for Education,

Research and InnovationSME Small and medium-sized enterprisesTA Technical AssistanceTVET Technical vocational education and

trainingUN United NationsUNFPA United Nations Population FundUNICEF United Nations Children FundWASH Water, sanitation and hygieneWatSan Water and sanitationWHO World Health Organization

5

The development partnership between the govern-ments of Switzerland and Mozambique goes back to the mid-1970s. Since the first peace agreement in 1992, Switzerland has continuously increased its de-velopment cooperation. The combined competences and resources of the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO) have helped national partners bring about important achievements in the areas of economic development, health, water and sanitation, governance and civil society empower-ment. Poverty has declined over time.

The new Federal Council’s Dispatch on Switzerland’s International Cooperation 2017–2020 reconfirms Mozambique as a priority country for Swiss devel-opment cooperation. Indeed, the deteriorating eco-nomic landscape, the rekindled conflict between the main political parties and the inability to cope with the rapidly growing population are obvious threats to social cohesion and stability, giving rise to inequali-ties, a growing mass of jobless youth, corruption, and unequal access to natural resources and public services.

The coming years are crucial for Mozambique’s peace and sustainable development. In line with the values of Swiss foreign policy and comparative advantages, Switzerland is ready to assist the government of Mo-zambique in fulfilling its responsibility to foster inclu-sive growth and to reduce poverty further.

To this end, guided by the 2030 Agenda for Sus-tainable Development and within the framework of Mozambique’s five-year plan, Switzerland will help strengthen governance at the local level. It will con-tribute to more equitable, efficient and accountable access to and use of financial and natural resources; it will help create market and income opportunities for young people and women and strengthen eco-nomic management; and it will strive to improve the health conditions of vulnerable people. Besides ac-tivities with a national reach, the focus on the rural areas of the three northern provinces of Niassa, Nam-pula and Cabo Delgado will remain.

This publication begins by providing an overview of Mozambique’s political, economic and social context. It subsequently discusses the rationale for Swiss-Mozambican cooperation and goes on to outline achievements during the previous strategy cycle and to identify lessons learned. Building on this analysis, implications for the new Swiss Cooperation Strat-egy are drawn. Chapter 5 describes the goals and expected outcomes for Swiss cooperation with Mo-zambique for the 2017–2020 period.

I am confident that the priorities set out in the pre-sent strategy are particularly relevant to peace, stabil-ity, sustainable development and the well-being of the Mozambican people.

Bern, February 2017

Manuel SagerAmbassadorSDC Director-General

Foreword

6

Mozambique faces its greatest test since the end of the civil war in 1992. Despite its enor-mous potential, Mozambique remains one of the poorest countries in the world, and one with significant economic, political, social and environmental challenges. Armed confronta-tions with the former rebel group, the poten-tially disastrous impact of undisclosed loans and debt on the macroeconomic conditions, and severe drought in the south and centre of the country threaten Mozambique’s stability and the well-being of its people.

Confrontational politics in an already fragile and violent situation…

Mozambique is one of 56 countries and economies identified as having fragile situations, using the OECD’s States of Fragility Framework.1 Its fragility lies especially in the political dimension.

Two major and closely interlinked developments threaten the country’s stability, inclusive growth, and sustainable, socially equitable development: First, structural inequalities remain high due to weak rule of law, the way that natural, human and financial re-sources are managed, and the country’s vulnerability to external shocks. In particular, the divide between the prosperous city of Maputo in the far south and the rest of the country persists. Formal participatory spaces are largely controlled by the ruling party FRE-LIMO with limited access for opposition members, specifically at district and provincial levels. State in-stitutions remain highly centralised in spite of an on-going decentralisation process. Replication of roles and institutions at central and local levels is impeding efficiency. Government and state institutions at all levels are mainly accountable to the ruling party. The political and economic spheres overlap and the state

1 OECD States of Fragility 2016 HIGHLIGHTS.

remains vulnerable to corruption and other criminal practices. Formal oversight and control is limited.

Second, tensions have persisted between FRELIMO and RENAMO, both struggling for power, since the General Peace Agreement in 1992. Decentralisation of political and economic authority to the provinces has been one of the fundamental disputes. In 2012, armed violence resurged and, in August 2015, dia-logue between the two parties broke off completely. Within weeks, the situation markedly deteriorated. The ruling party FRELIMO keeps holding on to its centralist and non-inclusive policy direction, which the opposition RENAMO considers a breach of key elements of the Peace Agreement and the more re-cent 2014 Cease Fire. Both parties have agreed to international mediation, but circumstances remain very tense with escalating rhetoric and violent con-frontations and assassination of political opponents.

However, there are first signs of hope, as at the end of 2016 RENAMO announced a 60-day ceasefire and parliamentarians from both sides began appraising models of administrative decentralisation. A possible deal – at best only partial – will be fraught with chal-lenges.

Large and rapidly growing deprived population…

The Republic of Mozambique has a population of 28 million; almost half of the people are below the age of 15. Projections indicate that the population will almost double by the year 2040, and that the pro-portion of working-age people will grow to around 60%. While life expectancy at birth has increased to 55, it is still ten years less than in neighbouring Tan-zania, for instance.

Mozambique belongs to the group of least developed countries despite massive aid flows from the inter-national community in the last 20 years. Poverty de-clined sharply from a very high 70% in 1998 to 54% in 2002. In 2014, still half of the population lived below the national poverty line. A national house-hold expenditure survey in 2015 revealed modest im-provements in living conditions, mainly in access to services and durable goods, but also demonstrated that inequalities in terms of wealth distribution have increased, as has the rural-urban gap.

1 Development context

7

In 2015, Mozambique ranked a very low 180th out of 188 countries on the United Nations Development Programme – UNDP Human Development Index. Equitable access to quality health, water and sanita-tion services is at the core of poverty reduction, espe-cially in the vast rural areas, but remains an enormous challenge. The percentage of the population using safe sources of drinking water and adequate sanita-tion infrastructure has increased, but still only reaches 49% and 21%, respectively. HIV prevalence among adults is the eighth highest worldwide, namely an es-timated 10.6%. Despite comparatively high female representation in the national parliament (39.6% in 2015), women and girls remain confronted with manifold disadvantages and violations of their rights, particularly in rural areas. Mozambique is among the countries with the highest percentage of child mar-riage and there is a lack of respect for women’s pow-er over their own lives. The number of primary and secondary schools tripled between 1992 and 2010, but illiteracy remains comparatively high at 21% for males and 42% for females. Since 2003, maternal mortality has persisted at 408 deaths per 100,000 live births, which is among the highest in the world and the second highest in the region.

Liquidity crisis and a downward-spiralling economy…

Mozambique has been one of the most rapidly grow-ing economies in Africa. Annual GDP growth rates surpassed 7% over the past five years, enabled by large-scale foreign investments in the capital-inten-sive industrial sector as well as significant ODA. This impressive economic expansion was not inclusive, however. The major part of the rapidly growing pop-ulation did not experience tangible benefits in terms of public services or income opportunities. Official unemployment stands at 23% (25% for women); youth unemployment at a staggering 41%. Tens of thousands of Mozambicans migrate each year to South Africa to find work. The low skills level of the labour force remains a significant concern: employ-ers cannot hire qualified workers; a critical mass for promoting a culture of entrepreneurship is lacking. Three quarters of the population (87% of whom are women) work in smallholder farming, which is under great pressure from land concessions for industrial farming and from frequent natural disasters. The in-dustrial sector employs a mere 6% of the workforce. Mozambique suffers from extreme climate events. It endures adverse impacts of droughts in the centre and south while devastating floods regularly hit in the north. Even if climatic conditions were favourable, the government’s interest in commercial agriculture distracts from much-needed efforts to improve the productivity and resilience of smallholder farmers.

The economic growth rate recently declined to 3.7%. In 2016, the revelation of previously undisclosed ex-ternal public loans seriously undermined donors’ trust, led to a suspension of vital ODA, and plunged the economy in a downward spiral. Mozambique’s already existing high debt burden is estimated to reach 112% of GDP, compared to a regional aver-age of 41% according to the IMF. Mozambique faces significant budget shortages and risks losing its cred-it-worthiness, with an expected negative impact on public services and importation of goods such as fuel and medicines. Positive IMF expectations of 8% and more growth in the long-term, based on an assump-tion of massive investments in natural gas extraction and higher coal production, are compromised. Nev-ertheless, they are still within reach if Mozambique, together with its partners, manages to improve pub-lic funds management and fiscal transparency and restore economic stability.

8

2 Swiss and international cooperation with Mozambique

Switzerland has been active in Mozambique since the mid-1970s; formal development cooperation started in 1979. During the peace process, which led to the 1992 General Peace Agreement that ended the 16-year civil war, Switzerland made significant contri-butions to the demobilisation and rehabilitation of the war-torn country. Since then, it has continuously increased the level of its international development cooperation. Combining the competences and re-sources of the Swiss Agency for Development Coop-eration (SDC), the State Secretariat for Economic Af-fairs (SECO), and the Human Security Division of the Federal Department of Foreign Affairs’ Directorate of Political Affairs, its focus has been on economic development, health, water and sanitation, and gov-ernance and the strengthening of civil society.

Mozambique is among Africa’s largest recipients of ODA. The donor landscape is complex with more than 60 bilateral and multilateral agencies. In 2014, ODA represented 25% of the national budget or 13% of GDP. The USA (18.8% of ODA) and the World Bank (15.1%) were by far the largest donors, followed by the European Union and UKAID. Switzerland (2%) figured in the midrange segment of donor contribu-tions. During 2012-16, it channelled around 60% of its ODA through the public system.

Several Swiss NGOs and research institutions are also present in Mozambique: Helvetas, Swiss Intercoop-eration and Swisscontact are among the SDC’s main implementing partners.

The future role and form of ODA to Mozambique is unpredictable for various reasons. First, OECD donors are cautious because of a series of disclosures around mismanagement of public funds, lack of fiscal trans-parency and corruption scandals. Second, the influ-ence of traditional donors is gradually declining: an increase in importance of non-traditional donors who invest in the economy and infrastructure and operate outside coordination mechanisms can be ob-served; alternative income from natural resources is anticipated.

Represented by an integrated embassy, Switzerland is a recognised convenor and opinion leader, espe-cially in decentralisation, health and public finance management. Government authorities and civil so-ciety organisations alike perceive Switzerland as an honest broker.

Swiss cooperation with Mozambique will continue to emphasise poverty reduction in line with the values of Swiss foreign policy and with the Federal Council’s Dispatch on Switzerland’s International Cooperation 2017–2020. Assistance will be guided by the 2030 Agenda for Sustainable Development and provided within the framework of Mozambique’s five-year plan. Mozambique is an SDC priority country. The SDC will implement a full-fledged programme formu-lated as part of the present strategy and within the framework of SDC regional and global programmes. SECO will pursue complementary measures, includ-ing support for global initiatives implemented by in-ternational financial institutions.

9

An evaluation of the Swiss Cooperation Strategy 2012–2016 generally concluded that it was highly aligned with country priorities and policies and with the priorities of the Federal Council’s dispatch, and that the Swiss portfolio demonstrated relevant achievements in all priority areas. At the same time, it pointed out important threats to sustainability, nota-bly fragile political support for decentralisation, con-tested space for public deliberation and civil society engagement, and severe capacity constraints within the public sector and civil society.

Achievements in local governance

Switzerland has supported decentralisation and pro-moted accountability at municipal and district levels in the areas of public administration, land rights, and water and sanitation service delivery.

Swiss social accountability initiatives have contrib-uted to greater citizen participation in decision-mak-ing. Participatory spaces supported by Switzerland at district and municipal level showed higher female participation than the national average. Furthermore, today’s most renowned Mozambican civil society or-ganisations were built up and supported by Switzer-land. Their impact and relevance for policy dialogue on transparency, anti-corruption, natural resource and land management is heavily due to Swiss invest-ments in their institutional capacities. In all 153 dis-tricts of Mozambique, Swiss support contributed to more efficient and transparent management of re-sources for service delivery. Addressing not only sup-ply and demand sides, but specifically also working on the interface between the two, was relevant and led to higher tax revenues and better public service delivery.

Furthermore, promoting land governance, commu-nity land delimitation and land titling has increased land security for parts of the rural population. Special attention to land rights and gender equity increased public awareness about specific difficulties women and girls face in gaining access to and use of land. Land governance will gain additional relevance in the context of foreign investments in agricultural land and the extraction of natural resources.

Support for local water systems, including through common funds CFs, was more successful than for the sanitation sector. While more citizens of Cabo Delga-do province now have access to safe water (60% in 2015 compared to 35% in 2011), and the spread of cholera was halted, sanitation coverage throughout the country remains low.

Achievements in economic development

In the area of economic development, Switzerland has developed a relevant and coherent portfolio at the local and national level.

In the north of Mozambique, where the private sec-tor has traditionally been very weak, Switzerland fa-cilitated the development of agricultural and horticul-tural value chains that have increased the income (by an average of 50% p.a.) of 18,000 poor smallhold-ers, a quarter of whom are women, through access to quality inputs and services. In a complementary ef-fort, a multi-stakeholder national association for the seed sector was established. In Nampula province, Switzerland supported the creation of one of the first fully-fledged regulated microfinance banks in Mozambique. Opened in September 2014, the Micro Bank Mozambique MBFM has served over 10,000 low-end clients, 90% of whom were women. This pioneering but challenging project has great poten-tial to accelerate local private sector development.

3 Past achievements and lessons learned 2012–2016

Selected accomplishments Governance

� Higher than usual

female participation in local

decision taking in Swiss-

supported districts and

municipalities

� More influential

Mozambican civil society

organizations

� Agricultural land secu-

rity increased

� Increase in access to

safe water in Cabo Delgado

province from 35% in 2011

to 60%

� Increased efficiency

and transparency in public

financial management in

all 153 districts leading to

higher tax revenues

10

At the macroeconomic level, the Swiss contribution to capacity building for the National Tax Adminis-tration has led to a twofold increase in nominal tax revenues since 2011. General Budget Support (GBS) combined with technical assistance, provided Swit-zerland an important entry point to engage in policy dialogue at the highest level, contributing in par-ticular to strengthening Public Finance Management (PFM) systems. In 2014, an independent evaluation2 found that GBS had contributed to macroeconom-ic stability and an expansion of public spending on high-priority issues; however, despite increasing ac-cess to public services, it had so far not translated into significant poverty reduction.

Achievements in health

An important accomplishment in the health sector is an increase in institutional birth rates in Cabo Delga-do province from 66% in 2010 to 76%, also thanks to Swiss support for better public finance manage-ment in the health system. The availability of 15 es-sential medicines in Cabo Delgado increased from 52% in 2011 to 60%, but missed the ambitious 90% target due to challenges with the medicine logistics system. On the downside, the performance of the sectoral common fund and the health sector-wide approach in Mozambique was found to be behind expectations in terms of financial weight, impact on overall systemic change and accountability. This has led concerned development partners, including Swit-zerland, to initiate joint revisions of this particular aid mechanism.

2 Independent Evaluation of Budget Support in Mozambique Final Report Volume I 2014. Jointly managed by the European Commission, the Ministry of Planning and Development of Mozambique, and the evaluation departments of Ireland, Germany, Belgium, Italy, Finland, the Netherlands and France.

Lessons learned

The evaluation of the Swiss Cooperation Strategy 2012-16 and the consultation process leading up to the present strategy have identified important les-sons.

Overall, work in health, economic development and local governance was and remains highly relevant. Switzerland’s long-term support and persistence, especially in light of political challenges; its partner-ships with state institutions, local communities and civil society; and its knowhow and technical exper-tise were all highly valued. Its parallel work at the national level and in the districts and municipalities facilitated valuable knowledge transfer and central-level policy dialogue. Its careful choice and mix of aid modalities greatly helped to achieve desired results at the national and local level.

Switzerland’s presence in Mozambique has been more significant than its relatively modest ODA contribu-tion. It has been able to leverage its support thanks to its involvement in coordination mechanisms, gen-eral budget support (GBS) and common funds. How-ever, the recent debt-crisis scandal and clear violation of underlying principles for the provision of budget support have once more demonstrated the need for a stable context, sound macroeconomic policies and an adequate regulatory oversight mechanism.

Given the size of Mozambique, the unpredictability of overall ODA, and the volatile political and eco-nomic situation, Swiss activities and resources need more strategic targeting. There is scope for Switzer-land to work more on the underlying causes of con-flicts and inequalities to strengthen social cohesion.

Selected accomplishments Economic development

� Income of over 18,000

smallholders in the north of

Mozambique increased by

an average of 50% p.a.

� Access to microfinance

for over 10,000 low-end,

mainly female, clients in

Nampula province

� National Tax Adminis-

tration doubled nominal tax

revenues

� Strengthened public

financial management

systems

� Allocation of more

public funds to high-priority

issues

Selected accomplishments Health

� Increase in institutional

birth rates in Cabo Delgado

province from 66% in 2010

to 76%

� Increase in availability

of 15 essential medicines in

Cabo Delgado from 52% in

2011 to 60%

11

Mozambique faces a critical period of political, eco-nomic and social transition. The most likely scenario is that tensions between FRELIMO and RENAMO will persist. Structural inequalities will remain high or even increase. Living conditions will stagnate or fur-ther deteriorate for the majority of the population. Four factors therefore significantly affect the design of the Swiss Cooperation Strategy 2017–2020: the changing economic landscape, the conflict between the main political parties, the role of the government, and the rapidly growing population.

The sheer size of the country, insufficient institu-tional capacities, political distractions and insecurity, and the low-skilled labour force will make it an enor-mous challenge for the government of Mozambique to respond to the projected population growth and accompanying increased demand for public services. Thus, further conflict-sensitive efforts to strengthen good governance, decentralisation and social ac-countability are called for, as is a dedicated engage-ment in peace- and state building. Building on its experience, the Swiss embassy is ready to play a fa-cilitating role in the conflict between political parties should the opportunity arise.

A young dynamic workforce and better economic inclusion of women are opportunities to put the economy on a broader and solid footing. To harvest this potential and reduce unemployment, increased improvements to the business environment, employ-ment opportunities, skills development, access to finances and productivity are in high demand. Ag-riculture lends itself as an ideal sector for creating widespread benefits and narrowing disparities, spe-cifically gender inequalities.

Good governance will remain a priority area and at the heart of all Swiss support. Policy dialogue and

technical assistance for decentralisation, public re-source management and social accountability will be intensified, with a stronger emphasis on change at the local level and for poor and vulnerable popula-tion groups. Support for civil society empowerment and participation in policy processes will be strength-ened and include the private sector.

Switzerland will allocate considerably more funding to creating employment and raising incomes in the agricultural sector in the northern provinces. To this end, it will pay more attention to skills development than until now. It will also address the resilience of smallholder farmers and SMEs to climate change, environmental degradation and natural hazards, thereby also contributing to better food security. De-

pending on progress in responding to and manag-ing the debt crisis, Switzerland will continue to work with central-level partners to improve transparency in public financial management, including domestic revenue management, especially in view of increas-ing challenges related to taxation of natural resourc-es wealth. It will explore possibilities for supporting fiscal decentralisation.

Future Swiss cooperation will aim to improve the health situation of the growing population, and especially rural women and young people. Striving for greater impact, the health programme will be implemented through multi-sectoral interventions in health and sanitation. Through the revised health sector common fund, Switzerland will continue to engage in results-oriented policy dialogue and coor-dination where it will focus on primary healthcare, governance and decentralised service delivery.

Seeking to maximise impact and scale, Switzerland will use lessons learned at the local level to feed na-tional policy dialogue in all its areas of work.

4 Implications for the Swiss Cooperation Strategy 2017–2020

12

Overall goalThe overall goal of the Swiss Cooperation Strategy Mozambique 2017–2020 is to contribute to poverty reduction by building a more equitable society and facilitating inclusive growth.

The three Swiss portfolio priorities are: (1) good gov-ernance, by contributing to equitable, efficient, trans-parent and accountable access to and use of financial and natural resources; (2) market and income op-portunities, in particular for youth and women, and economic management for inclusive growth; and (3)

improved health conditions. National policy dialogue and decentralised interventions will reinforce support for service delivery in districts and municipalities with a focus on the three northern provinces where Swit-zerland is already active.

Governance

Switzerland will contribute to national cohesion and stability by improving capacities to manage financial and natural resources at national and local levels. To this end, it will pursue two closely interlinked ap-proaches in partnership with other development ac-tors. On the one hand (outcome 1), it will:

› Strengthen the competences of municipalities and districts in public financial management to ensure efficient and transparent management of resources at the local level;

› Strengthen the organisational capacities of Mozambican CSOs to improve their internal governance and their capacities to advocate for equitable resource management;

› Engage with private sector stakeholders on due diligence measures and generate understanding of conflict-sensitive business management as well as business integrity.

On the other hand (outcome 2), Switzerland will continue to promote inclusive and efficient spaces for governmental and non-governmental actors to engage in dialogue on transparent, accountable and inclusive management and use of resources. Switzer-land will continue its successful support for equita-ble access to and use of land, which will reinforce interventions and results in the area of income and economic development.

Analyses of the realities of women and young peo-ple will ensure that their needs are better included in programme planning and implementation as well as multi-stakeholder dialogue. Research and analyses will also provide a better understanding of particular inter-group tensions and divisions with potential for conflict.

5 Priorities and objectives

GovernanceMore equitable, efficient, transpar-ent and accountable access to and use of resources

Governance outcome 1:Decentralised, equitable and trans-parent management of resources by local government/state institutions and civil society organisations as well as enhanced business integrity

Governance outcome 2:Socially accountable, inclusive and transparent access to and use of resources thanks to constructive multi-stakeholder dialogue between government/state institutions, citi-zens/CSOs and private sector stake-holders

13

Income and economic development

Switzerland through the SDC and SECO will con-tribute to inclusive growth and equitable sustainable economic transformation. To this end, it will consid-erably expand its support for market opportunities and services. (outcome 1) Following a market system development approach, Switzerland will improve employment and skills development, productivity and competitiveness in agriculture (including access to land, financial services, improved agricultural in-puts and irrigation). It will target skills development interventions in agriculture, financial education and

other relevant areas. Given their particular vulnerabil-ity, interventions will benefit young smallholders and women in northern Mozambique. The resilience of farmers facing adverse weather conditions and cli-mate change will also be addressed.

To enhance synergies between the economic mi-cro- and macro levels, Switzerland will promote a sustainable and balanced macro-economic environ-ment (outcome 2), with a strong focus on improving the business environment and growth opportunities for micro- and small enterprises. To sustain previous development results, and complementary with the governance pillar, the focus on public financial man-agement reforms will be maintained - both at the central and decentralised levels - in particular in the area of tax policy and administration to support do-mestic revenue mobilisation. In addition, Switzerland will support economic research and advocacy work by CSOs and academic institutions in critical areas of economic management with a focus on the main determinants of inclusive growth, such as managing natural resources wealth.

Health

Switzerland is well positioned to make a difference in the health sector. At the national level (outcome 1), Switzerland will lead the finalisation of a revised MoU between development partners and the ministry of health with the objective to strengthen the sector-wide approach mechanism. It will actively contrib-ute to policy dialogue in support of a more effective

national health system. It will back decentralisation efforts by promoting decentralised systems that are capable of delivering equitable, efficient and inte-grated quality basic health services that respond to the needs of the population.

At local level (outcome 2), Switzerland will contrib-ute to improved health of vulnerable people living in rural areas of Mozambique by supporting supply and creating demand. It will achieve this through a new multi-sectoral approach to health and its deter-minants (water and sanitation). To influence access to and the quality of health and water and sanita-tion services, Switzerland will empower communities in the northern provinces - especially women and young people - to know and voice their rights and demand accountability.

Income and economic development outcome 1: Small farmers, with a par-ticular focus on women, and other SMEs, increase their incomes through improved market opportunities, skills development and access to services

Income and economic development outcome 2: Public resources are mobilised and managed for more inclusive and sustained public service delivery and economic policies

Income and eco-nomic developmentImproved market opportunities and economic manage-ment for inclusive growth, for people to benefit equitably from sustainable economic transfor-mation

Health outcome 1:Sub-national systems deliver more equitable, efficient and integrated health, including WASH, basic ser-vices of high quality that respond to the needs of the vulnerable and dis-advantaged population

Health outcome 2:Rural communities in the Northern provinces are able to voice their needs and rights, and demand accountability from local govern-ments and basic service providers

HealthImproved health of vulnerable people living in rural areas of Mozambique

14

Transversal themes

Governance and gender will be strengthened as crosscutting themes. Besides targeted programmes within the governance domain, good governance will be also a fundamental feature of the health and the income and economic development and economic development domains. Governance as a transversal theme will emphasise transparency, anti-corruption, social accountability as well as (financial) decentrali-sation and local governance. A gender analysis of each priority area will be conducted and key gender issues/ challenges will be part of the overall monitor-ing and reporting system.

Due to its relevance and highly negative bearing in Mozambique, HIV/AIDS remains the third transver-sal theme. Support will be provided for implement-ing the SADC HIV/AIDS Strategy in close coordina-tion with the SDC Regional Programme Southern Africa as well as the SDC’s global and multilateral programmes.

In addition, reflecting risks and opportunities of the development context, Switzerland will apply a con-flict-sensitive approach and address climate change and disaster risk reduction, the latter particularly in the income and economic development pillar.

Culture

The Swiss Cultural Programme in Mozambique aligns itself with the Swiss Strategy for Culture and the Mo-zambican government’s plan to strengthen national identity and unity and promote (self-) employment. The Cultural Programme builds on the acknowledge-ment that values, beliefs, arts and cultural practices are key influences on political, economic and social development processes and more generally vectors of societal dynamism. Arts and culture matter for development. The programme aims to involve youth in cultural activities as a means to boost their self-esteem, confidence, sense of responsibility and initia-tive.

Gender objectives

Switzerland will contribute

to closing the gender gap

in Mozambique by:

� Ensuring that quality

water and sanitation and

health-related services

and care are offered to

men and women without

discrimination

� Increasing support

for women to overcome

difficulties they have in

accessing land, finance

services and markets

� Strengthening women’s

access to information and

the voice of women and

girls in formal and informal

decision-making processes

� Ensuring that social

accountability processes

and the media better

reflect women’s needs and

concerns

15

Aid modalities and partnerships

Switzerland will apply a mix of aid modalities. While continued attention will be given to central level policy dialogue, the need for external funding of sector common funds is expected to decrease given anticipated growing domestic revenues. Switzer-land will pay more attention to strengthening local government institutions. Similarly, it will intensify its work with CSOs at the local level. In addition, it will initiate spaces for multi-stakeholder dialogue, includ-ing entrepreneurs. To achieve its objectives, Switzer-land will coordinate and work with selected national and international organisations and Swiss partners, through strategy-relevant formal working groups and other types of alliances. It will lead those sector groups linked to its priority areas of engagement. It will scale up and seek new synergies with multilateral organisations and multi-stakeholder initiatives such as UNFPA, P4H and the Global Facility for Disaster Reduction and Recovery (GFDRR). It will increase the level of interaction and collaboration with the SDC global programmes for food security and health and the SDC Regional Programme Southern Africa.

Geographical orientation

Beside activities with a national outreach, the cur-rent focus on the three northern provinces of Niassa, Nampula and Cabo Delgado will be maintained and even intensified. Extending parts of the programme to a central province (Zambezia) remains an option depending on how the context evolves.

Swiss integrated embassy in Mozambique

Switzerland benefits from a privileged and credible position in Mozambique thanks to a trustful and long-lasting relationship. The integrated embassy is active on the political stage where it makes efficient and effective use of opportunities to increase political coherence, create synergies with Swiss international development cooperation and other foreign priori-ties, and to safeguard Swiss interests. The embassy of Switzerland also engages in the economic sphere where it promotes the principles of fair economic de-velopment. The interest of the Swiss private sector in doing business with Mozambique, with some ex-ceptions, is modest, but growing. In 2013, the Swiss embassy supported the foundation of the Swiss Mo-zambican Business Network.

Human resources

The current embassy staffing is adequate for man-aging and implementing the Cooperation Strategy 2017–2020. Cost-effective management will be em-phasised, including the option of increasing the re-sponsibilities of local staff and a possible reduction of the number of expatriates. An active involvement in the political process may require additional resources.

Budget

The total indicative budget (excluding operating expenses) for the four-year Cooperation Strategy 2017–2020 amounts to about CHF 94 million. The SDC budget of CHF 89 million will be almost equally allocated between the three pillars. The income and economic development domain will see a doubling of its share to scale up interventions. The health pil-lar, despite the integration of WASH interventions, will decline, reflecting the anticipated reduced im-portance in financial terms of sector common funds. SECO’s complementary measures will contribute to the income and economic development pillar (ap-proximately CHF 5 million). Moreover, Mozambique will benefit from additional Swiss funding - i.e., through SDC global and regional programmes as well as Swiss contributions to international and mul-tilateral organisations/initiatives and Swiss NGOs ac-tive in the country.

6 Programme management and implementation

16

The Swiss Cooperation Strategy is subject to regular monitoring in order to keep track of the effective-ness and relevance of the Swiss programme portfo-lio and to decide on corrective measures. The results frameworks and the monitoring system are built on a perspective of emphasizing national objectives while achievements of the Swiss Cooperation are under-stood as a contribution to achieving these results. The approach aims to integrate the observations at country and Swiss portfolio level and to focus on monitored results at outcome (effect level) in all op-erations.

Monitoring the Cooperation Strategy serves the three-fold objective of (1) programme steering for ensuring relevance, effectiveness and efficiency of the Swiss programme; (2) accounting for results (for SDC headquarters and stakeholders); and (3) con-tinuous learning.

Monitoring of the Cooperation Strategy is within the responsibility of the Swiss cooperation office (SCO). The implementation of the Cooperation Strategy for Mozambique 2017–2020 will be monitored at four different levels:

› Development of the wider country context and sector-specific relevant contexts on a (bi-) annual basis to cover context changes with the MERV instrument

› Relevant changes at the level of national objectives: progress made in achieving expected results as stipulated in the framework plans for Mozambique and other national sector strategies

› Swiss portfolio results per domain of intervention to keep track of achievements in the different domains, including using Aggregated Reference Indicators (ARI) that allow the SDC to communicate on achievements across different countries

› Portfolio management of the embassy to verify performance in terms of application of aid modalities, cooperation with partners, allocation of financial resources, gender and other management dimensions

7 Programme steering

Level Focal Area Instrument Periodicity

Country context

› Overall country context relevant for the Swiss Cooperation Strategy

› MERV › Political report, › Economic report › HR-report

› At least annually: September/October

› (more frequently if required)

Country development results

› Country development results per domain of intervention

› Overall context changes relevant for the Swiss programme

› Specific domain context changes

› Annual report › Every year in autumn

Swiss port-folio results

› Effectiveness of interventions in achieving (annual) targets and contributing to country objectives

› Annual report › Domain and/or

programme reviews, evaluations and studies

› Mid-year review (May) › Annual review (October)

Portfolio management

› Effectiveness and efficiency of the Swiss Cooperation Office in supporting the programmes to reach the stipulated cooperation strategy objectives

› Annual report › Office management

report (OMR) › Financial reports / audits › ICS Report › Gender Mainstreaming

Plan – GEMP and SENAP (Gender)

› Every year in autumn

17

18

Annex 1: Map of Mozambique

19

Annex 2: Financial planning in Swiss francs The table shows only project fund expenses. Operating expenses are not included.

Domain/ Financial Year: 2017 2018 2019 2020 Total 2017-20 in %

Income and economic

development (SDC and SECO*)

5 750 000

1 250 000*

7 000 000

1 250 000*

7 500'000

1 250 000*

8 000 000

1 250 000*

28 250 000

5 000 000*

33 250 000

35%

Governance 7 000 000 7 000 000 7 500 000 8 000 000 29 500 000 31%

Health 8 000 000 7 500 000 7 000'000 6 500 000 29 000 000 31%

Other interventions

Culture programmes; small credits, etc.

750 000 500 000 500 000 500 000 2 250 000 3%

Total indicative SDC Budget Allocation 21 500'000 22 000'000 22 500'000 23 000'000 94 000 000 100%

General Overview of the projected funds by Swiss Federal Offices:

Financial Year: 2017 2018 2019 2020 Total 2017-20 in %

Federal Department of Foreign Affairs FDFA-SDC

21 500'000 22 000 000 22 500'000 23 000'000 89 000 000 94,5%

SECO* (complementary measures) (approx. 5m)* 5,5%

Total funds by Federal Offices 94 000 000 100%

Besides funds reported in the table, Mozambique will benefit from additional Swiss funding - i.e., through SDC global and regional programmes as well as Swiss contributions to international and multilateral organisations/initiatives and Swiss NGOs active in the country.

20

Ann

ex 3

: Res

ults

fram

ewor

k 1

Gov

erna

nce

Dom

ain o

bjec

tive:

Mor

e equ

itable

, effic

ient, t

rans

pare

nt an

d acc

ounta

ble ac

cess

to an

d use

of re

sour

ces t

hat c

ontrib

ute to

natio

nal c

ohes

ion an

d stab

ility.

Swiss

por

tfolio

out

com

es

Cont

ribut

ion

of S

wiss

pro

gram

me

Coun

try d

evelo

pmen

t out

com

es

Outc

ome s

tate

men

t 1: d

ecen

tralis

atio

n De

centr

alize

d, eq

uitab

le an

d tra

nspa

rent

mana

geme

nt of

reso

urce

s by

loca

l gov

ernm

ent/s

tate i

nstitu

tions

and c

ivil s

ociet

y org

anisa

tions

as

well

as en

hanc

ed bu

sines

s int

egrity

Loca

l gov

ernm

ent

1.1 %

of an

nual

incre

ase i

n mun

icipa

l reve

nues

from

mun

icipa

lity’s

own

reso

urce

s in 2

6 SDC

supp

orted

mun

icipa

lities

So

urce

: Pr

odem

(Rep

ortin

g N-1

) Ba

selin

e 201

5: 11

out o

f 26 m

unici

paliti

es w

ith le

ss th

an 5%

annu

al inc

reas

e Ta

rget

2020

: at

least

21 ou

t of 2

6 mun

icipa

lities

with

a mi

nimum

annu

al inc

reas

e of 5

%

Refer

ence

ARI

GO2

/SDG

16,17

: Bud

get r

esou

rces

Civil

socie

ty 1.2

Num

ber o

f SDC

supp

orted

Moz

ambic

an ci

vil so

ciety

orga

nisati

ons w

ith

incre

ased

capa

city t

o fos

ter tr

ansp

aren

t and

gend

er eq

uitab

le re

sour

ce

mana

geme

nt at

the na

tiona

l leve

l and

in C

abo D

elgad

o, Na

mpula

and

Nias

sa (c

apac

ity le

vel 3

or m

ore a

ccor

ding t

o SDC

CSO

capa

city b

uild-

ing co

ncep

t.)

Sour

ce :

LGMI

, Lan

d-us

e righ

ts, S

A in

healt

h, W

iwan

ana,

Base

line:

0 out

of /10

Ta

rget:

20

20 8

out o

f 10

Refer

ence

ARI

GO3

/SDG

16,17

: Illic

it fina

ncial

flows

- cap

acitie

s Bu

sines

s inte

grity

1.3

Qua

litativ

e obs

erva

tion o

f adh

eren

ce an

d ado

ption

of bu

sines

s inte

grity

ins

trume

nts by

comp

anies

(nati

onal

and l

ocal

level)

and i

mpro

ve th

eir

monit

oring

and r

epor

ting b

y bus

iness

asso

ciatio

ns

Sour

ce:

CIP,

Tra

nspa

renc

y Inte

rnati

onal,

Con

feder

ation

of E

cono

mic

Asso

ciatio

ns of

Moz

ambiq

ue C

TA, S

wiss

emba

ssy

Base

line 2

015:

BICA

Bus

iness

integ

rity S

core

: 25

Targ

et 20

20:

BICA

Bus

iness

Integ

rity S

core

: 50 o

r mor

e

Ge

nder

equit

able

reso

urce

man

agem

ent

1.4 %

of la

nd-u

se tit

les at

tribute

d to t

he S

DC la

nd-u

se rig

hts pr

ogra

mme t

o wo

men i

n Cab

o Delg

ado,

Namp

ula an

d Nias

sa

Sour

ces:

Land

-use

rights

prog

ramm

e Ba

selin

e 201

5: 40

% of

450 l

and d

elimi

tation

s/dem

arca

tions

attrib

uted t

o wo

men

Targ

et 20

20:

53%

of 18

00 la

nd de

limita

tions

/dema

rcatio

ns a

ttribu

ted to

wo

men

− Im

prov

ed go

vern

ment/

state

capa

cities

to m

anag

e fina

ncial

reso

urce

s at

dece

ntrali

sed l

evel

as an

impo

rtant

dimen

sion o

f goo

d gov

erna

nce.

−

Incre

ased

orga

nisati

onal

capa

city o

f Moz

ambic

an ci

vil so

ciety

orga

ni-sa

tions

to ad

voca

te an

d lob

by fo

r equ

itable

reso

urce

man

agem

ent.

− En

hanc

ed bu

sines

s inte

grity

and t

rans

pare

ncy o

f priv

ate se

ctor

stake

holde

rs in

the m

anag

emen

t of n

atura

l reso

urce

s. −

Impr

oved

natio

nal p

olicie

s and

stra

tegies

rega

rding

dece

ntrali

satio

n an

d res

ource

man

agem

ent to

guar

antee

demo

cratic

rule

of law

and

good

gove

rnan

ce.

− Mo

re su

staina

ble an

d tra

nspa

rent

mana

geme

nt of

natur

al re

sour

ces

and e

nviro

nmen

t. As

sump

tions

−

The g

over

nmen

t con

tinue

s to i

mplem

ent d

ecen

tralis

ation

polic

y and

str

ategy

acco

rding

to th

e esta

blish

ed an

d app

rove

d acti

on pl

an.

− Co

ntinu

ous e

xisten

ce an

d poli

tical

spac

e for

man

oeuv

re fo

r driv

ers o

f de

centr

alisa

tion w

ithin

gove

rnme

nt.

− Im

prov

ed bu

sines

s inte

grity

supp

orts

at the

same

time p

ro-p

oor a

nd

pro-

profi

t dev

elopm

ent.

− At

leas

t stat

us qu

o of s

pace

for c

ivil s

ociet

y at n

ation

al an

d loc

al lev

els re

gard

ing fr

eedo

m of

expr

essio

n, fre

edom

of as

socia

tion a

nd

freed

om of

peac

eful a

ssem

bly.

− Pr

ivate

secto

r stak

ehold

ers r

ecog

nise t

hat c

orru

ption

is a

major

ch

allen

ge an

d an o

bstac

le to

good

busin

ess.

Risk

s −

No po

litica

l solu

tion t

o ten

sions

betw

een R

ENAM

O an

d gov

ernm

ent

and c

ontin

uous

esca

lation

of ar

med c

onflic

t. −

Redu

ction

of sp

ace f

or ci

vil so

ciety

orga

nisati

ons a

t nati

onal

and l

ocal

levels

due t

o arm

ed co

nfron

tation

s and

incre

ased

politi

cal te

nsion

s. −

No or

little

inter

est o

f priv

ate se

ctor s

takeh

older

s to c

omply

with

basic

pr

incipl

es of

busin

ess i

ntegr

ity.

− De

centr

alisa

tion i

s one

of th

e iss

ues s

purri

ng th

e con

flict b

etwee

n the

po

litica

l par

ties.

Coun

try d

evelo

pmen

t out

com

e 1

Susta

inable

and t

rans

pare

nt ma

nage

ment

of na

tural

reso

urce

s and

the

envir

onme

nt Co

nsoli

datio

n of d

emoc

ratic

rule

of law

, goo

d gov

erna

nce a

nd

dece

ntrali

satio

n Lo

cal g

over

nmen

t 1.1

No.

of mu

nicipa

lities

whe

re ha

rmon

ised m

unici

pal fi

nanc

ial m

anag

e-me

nt sy

stem

is us

ed

Sour

ce:

PIPE

D (D

NDA

- Dire

cção

Nac

ional

de D

esen

volvi

mento

Au

tárqu

ico)

Base

line 2

015:

0 Ta

rget

2019

: 15

Ci

vil so

ciety

1.2 Q

ualita

tive o

bser

vatio

n of s

pace

for c

ivil s

ociet

y and

free

dom

of the

pr

ess a

t the l

ocal

level

and a

t the n

ation

al lev

el:

− Fr

eedo

m of

expr

essio

n and

opini

on/fr

eedo

m of

the pr

ess

− Fr

eedo

m of

asso

ciatio

n/pea

ceful

asse

mbly

− No

n-dis

crimi

natio

n (ba

sed o

n OHC

HR pr

actic

al gu

ide fo

r CSO

sp

ace)

So

urce

s: Qu

alitat

ive: U

N Co

untry

repo

rts (O

HCHR

), Int

erna

tiona

l Non

-Go

vern

menta

l Org

anisa

tions

- IN

GO re

ports

(Hum

an R

ights

Watc

h - H

RW)

Qu

antita

tive:

freed

omho

use.o

rg / r

sf.or

g Ba

selin

e 201

5: Fr

eedo

m ho

use:

44 /R

epor

ters w

ithou

t bor

ders:

85

Targ

et 20

20:

Quali

tative

: Incre

ased

spac

e for

civil

socie

ty

Quan

titativ

e: An

nual

impr

ovem

ent o

f free

dom

of the

pres

s sc

ores

Busin

ess i

ntegr

ity

1.3 R

ank a

nd sc

ore o

f Moz

ambiq

ue in

Cor

rupti

on P

erce

ption

Inde

x of

Tran

spar

ency

Inter

natio

nal

Sour

ces:

Tran

spar

ency

Inter

natio

nal C

PI re

port

Base

line 2

015:

Rank

112 o

ut of

187 /

Sco

re 30

out o

f 100

Ta

rget:

Im

prov

emen

t of R

ank a

nd an

nual

impr

ovem

ent o

f CPI

scor

es

Polic

ies

1.4 Q

ualita

tive o

bser

vatio

n of p

olicy

impr

ovem

ent a

nd el

abor

ation

and

imple

menta

tion o

f acti

on pl

ans i

n the

them

atic a

reas

of de

centr

alisa

-tio

n and

gend

er eq

uitab

le re

sour

ce m

anag

emen

t So

urce

s:

Gove

rnan

ce P

latfor

m, D

ecen

traliz

ation

wor

king g

roup

, Gen

der

worki

ng

21

Ou

tcom

e sta

tem

ent 2

: Soc

ial A

ccou

ntab

ility

Socia

lly a

ccou

ntable

, inclu

sive a

nd tr

ansp

aren

t acc

ess t

o and

use

of re

sour

ces t

hank

s to c

onstr

uctiv

e mult

i-stak

ehold

er di

alogu

e be

twee

n gov

ernm

ent/s

tate i

nstitu

tions

, citiz

ens/C

SOs a

nd pr

ivate

secto

r stak

ehold

ers

Natio

nal le

vel

2.1 N

umbe

r and

quali

ty of

multi-

stake

holde

r con

fer-

ence

s/dial

ogue

s/plat

forms

on ke

y dev

elopm

ent is

sues

for M

ozam

bique

su

ppor

ted/in

itiated

dire

ctly b

y Swi

tzerla

nd

Sour

ce:

SDC

Mapu

to Ba

selin

e 201

5:

1 per

year

Ta

rget

2020

: mi

nimum

2 pe

r yea

r

Munic

ipal le

vel (u

rban

spac

es)

2.2 N

o. an

d qua

lity of

inter

actio

ns (p

ublic

audit

ions)

betw

een l

ocal

gov-

ernm

ent/s

tate i

nstitu

tions

, citiz

ens/C

SOs a

nd pr

ivate

secto

r stak

ehold

-er

s in 2

6 mun

icipa

lities

in ce

ntral

and n

orthe

rn M

ozam

bique

So

urce

: Mu

nicipa

l Soc

ial A

ccou

ntabil

ity P

rogr

amme

- Mu

niS-

am/P

rode

m

Base

line 2

015:

6 out

of 26

Ta

rget

2020

: 21

out o

f 26

Refer

ence

ARI

GO1

/SDG

16: C

itizen

partic

ipatio

n

Distr

ict/pr

ovinc

es (r

ural

area

s) 2.3

Num

ber o

f com

munit

ies in

Cab

o Delg

ado,

Namp

ula an

d Nias

sa be

ne-

fitting

from

tax r

even

ues e

stabli

shed

by la

w (2

0%) o

n for

estry

and f

au-

na ex

ploita

tion (

comm

unity

-gov

ernm

ent)

and n

umbe

r of c

ommu

nities

in

Cabo

Delg

ado,

Namp

ula an

d Nias

sa su

ppor

ted in

the n

egoti

ation

with

pr

ivate

secto

r stak

ehold

ers (

comm

unity

-priv

ate se

ctor)

Sour

ce:

Land

-use

rights

prog

ramm

e ITC

Rep

orts

Base

line 2

015:

No. o

f com

munit

ies be

nefitt

ing fr

om ta

x rev

enue

s: 61

out 1

15

No. o

f com

munit

ies su

ppor

ted in

nego

tiatio

n with

priva

te Se

c-tor

stak

ehold

ers:

03 ou

t 15

Targ

et 20

20:

No. o

f com

munit

ies be

nefitt

ing fr

om ta

x rev

enue

s: 24

4 out

244

/ No.

of co

mmun

ities s

uppo

rted i

n neg

otiati

on w

ith pr

ivate

sec-

tor st

akeh

older

s: 12

out 6

0 Ge

nder

2.4

Qua

litativ

e: Ob

serva

tion o

f effe

ctive

ness

of w

omen

’s pa

rticipa

tion a

nd

equa

l opp

ortun

ities f

or le

ader

ship

at all

leve

ls of

decis

ion-m

aking

in po

-liti

cal, e

cono

mic a

nd pu

blic l

ife in

Cab

o Delg

ado,

Namp

ula an

d Nias

sa.

Quan

titativ

e: No

. of s

uppo

rted M

ozam

bican

CSO

s with

gend

er po

li-cy

/actio

n plan

in im

pleme

ntatio

n

Sour

ces:

LGMI

, land

-use

rights

, Wiw

anan

a Ba

selin

e 201

5: 2 o

ut of

10 w

ith ge

nder

polic

y / 0

in im

pleme

ntatio

n Ta

rget

2020

: 10

out o

f 10 w

ith ge

nder

polic

y in i

mplem

entat

ion

− Im

prov

ed qu

ality

of cit

izen p

artic

ipatio

n and

incre

ase q

uality

and

quan

tity of

exch

ange

of in

forma

tion b

etwee

n gov

ernm

ent/s

tate,

busi-

ness

secto

r and

citiz

ens/C

SOs.

− Inc

reas

ed co

mmun

ity be

nefits

from

natu

ral re

sour

ces t

hank

s to m

ulti-

stake

holde

r eng

agem

ent in

its us

e. −

Decre

ased

tens

ions t

hank

s to c

onstr

uctiv

e dial

ogue

betw

een a

ll inv

olved

partie

s at th

e loc

al an

d the

nati

onal

level.

−

Citiz

en pa

rticipa

tion i

n dec

ision

-mak

ing pr

oces

ses a

t mun

icipa

l, dis

trict a

nd na

tiona

l leve

ls wi

ll be m

ore e

ffecti

ve an

d gen

der a

nd ag

e eq

uitab

le.

− Mo

re in

clusiv

e, tra

nspa

rent

and s

ustai

nable

man

agem

ent o

f natu

ral

reso

urce

s and

envir

onme

nt.

Assu

mptio

ns

− Go

vern

ment

effec

tively

imple

ments

law

on ac

cess

to in

forma

tion a

t all

levels

. −

The g

over

nmen

t con

tinue

s to i

mplem

ent p

olicie

s and

stra

tegies

re

gard

ing co

mmun

ity pa

rticipa

tion a

nd in

volve

ment

in na

tural

re-

sour

ce us

e (pu

blic a

uditio

ns be

fore i

nves

tmen

ts etc

.).

− Pr

ivate

secto

r stak

ehold

ers r

ecog

nise t

hat e

ngag

emen

t with

comm

u-nit

ies in

creas

es th

eir be

nefit.

−

Comm

unitie

s inte

reste

d to e

ngag

e with

busin

ess s

ector

. −

Furth

er im

prov

emen

t of e

xistin

g par

ticipa

tory s

pace

s and

open

ness

for

dialo

gue a

nd de

bate

at all

leve

ls (co

nsult

ative

coun

cils,

deve

lop-

ment

obse

rvator

ies, p

ublic

audit

ion et

c.).

− Co

mmun

ities c

ontin

ue to

reco

gnise

value

adde

d of p

artic

ipator

y sp

aces

and m

ulti-s

takeh

older

dialo

gue.

Risk

s −

No po

litica

l solu

tion t

o ten

sions

betw

een R

ENAM

O an

d gov

ernm

ent

and c

ontin

uous

esca

lation

of ar

med c

onflic

t/arm

ed te

nsion

and c

on-

flict li

mits

confi

denc

e of s

takeh

older

s in e

ffecti

ve, in

depe

nden

t and

tra

nspa

rent

multi-

stake

holde

r dial

ogue

. −

Partic

ipatio

n fati

gue o

f citiz

ens o

r CSO

s in m

ulti-s

takeh

older

dialo

gue

due t

o lac

k of r

espo

nses

or co

ncre

te re

sults

. −

Statu

s quo

rega

rding

(sep

arati

on of

state

and p

arty?

) the

gove

rn-

ment.

−

Furth

er de

creas

e of c

ommo

dity p

rices

. −

Politi

cal in

terfer

ence

, co-

optat

ion of

spac

es fo

r dial

ogue

unde

rmine

s cre

dibilit

y and

poss

ibility

of vo

icing

dive

rse op

inion

s. −

Dece

ntrali

satio

n is o

ne of

the i

ssue

s spu

rring

the c

onflic

t betw

een t

he

politi

cal p

artie

s.

Coun

try d

evelo

pmen

t out

com

e 2

Susta

inable

and t

rans

pare

nt ma

nage

ment

of na

tural

reso

urce

s and

the

envir

onme

nt En

sure

effec

tive p

artic

ipatio

n of c

itizen

s in d

ecisi

on-m

aking

pro-

cess

es on

distr

ict an

d mun

icipa

l dev

elopm

ent

Natio

nal le

vel:

2.1 %

of re

ques

ts for

acce

ss to

infor

matio

n by c

itizen

s rec

eived

satis

facto-

ry re

spon

se w

ithin

the tim

efram

e esta

blish

ed by

law

Sour

ce :

QAD

Base

line 2

016:

30%

Ta

rget

2018

: 45

%

Munic

ipal le

vel (u

rban

spac

es)

2.2 N

umbe

r of m

unici

paliti

es w

ith pu

blish

ed bu

dgets

and e

xpen

ditur

e re

ports

(26 m

unici

paliti

es in

the n

orth

) So

urce

: Pr

odem

(Rep

ortin

g N-1

) Ba

selin

e 201

5: tbd

Ta

rget

2020

: ea

ch m

unici

pality

publi

shes

at le

ast o

nce

Distr

icts/p

rovin

ces (

rura

l are

as)

2.3 N

umbe

r of p

rovin

cial a

nd ur

ban l

and-

use p

lans e

labor

ated a

nd im

ple-

mente

d So

urce

: PQ

G (M

ITAD

ER)

Base

line 2

014:

Prov

ince 4

/ Mun

icipa

lities

30

Targ

et 20

19:

Prov

ince 1

0 / M

unici

paliti

es 53

Po

licies

2.

4 Qu

alitat

ive ob

serva

tion o

n poli

cy im

prov

emen

t for c

itizen

’s pa

rticipa

tion

and i

nclus

ive re

sour

ce m

anag

emen

t with

a foc

us on

polic

ies fa

cilita

ting

wome

n and

use p

artic

ipatio

n and

their

acce

ss to

reso

urce

s

22

3 (4

) Lin

es o

f int

erve

ntio

n (S

wiss

pro

gram

me)

R

ef. o

utco

me

1:

Natio

nal le

vel:

− Sy

stema

tic po

licy d

ialog

ue: a

s lea

d of th

e dec

entra

lisati

on w

orkin

g gro

up, th

e SDC

orga

nises

at le

ast 4

annu

al me

eting

s of th

e gro

up w

ith pa

rticipa

tion o

f all r

eleva

nt go

vern

ment

stake

holde

rs an

d don

ors e

ngag

ed in

dece

ntrali

-sa

tion p

rogr

amme

s in o

rder

to ex

chan

ge on

insig

hts fr

om th

e inte

rventi

ons a

t the l

ocal

level

and p

ossib

le ad

aptat

ions o

n nati

onal

polic

ies an

d poli

tics o

n dec

entra

lisati

on.

− 2 a

nnua

l stee

ring g

roup

mee

tings

of th

e mun

icipa

l dev

elopm

ent p

rogr

amme

s cha

ired b

y the

Mini

stry o

f Pub

lic A

dmini

strati

on an

d with

partic

ipatio

n of a

ll rele

vant

natio

nal a

nd lo

cal s

takeh

older

s whe

re pr

ogre

ss of

the p

ro-

gram

me, p

olicie

s and

politi

cs in

the f

rame

work

of de

centr

alisa

tion a

t the m

unici

pal le

vel a

re di

scus

sed.

− Th

e SDC

prov

ides t

echn

ical a

dvice

to th

e join

t com

miss

ion in

the p

eace

nego

tiatio

n on p

ossib

le ag

reem

ents

and r

eform

s on d

ecen

tralis

ation

.

Loca

l gov

ernm

ent:

− Ur

ban a

reas

/mun

icipa

lities

: incre

ase p

ublic

finan

cial m

anag

emen

t cap

acity

of 26

mun

icipa

lities

in ce

ntral

and n

orthe

rn M

ozam

bique

thro

ugh c

apac

ity bu

ilding

of m

unici

pal p

rocu

reme

nt un

its in

26 m

unici

paliti

es an

d intr

oduc

tion

of sim

plifie

d fina

ncial

man

agem

ent s

ystem

comb

ined w

ith m

unici

pal g

rants

for s

mall a

nd m

edium

size

inve

stmen

ts.

− Ru

ral a

reas

/distr

icts/p

rovin

ces:

prom

ote co

ntinu

ous i

mplem

entat

ion of

distr

ict pe

rform

ance

mon

itorin

g sys

tem (D

istric

t Dev

elopm

ent M

onito

ring -

Smo

dd),

imple

menta

tion o

f nati

onal

strate

gy an

d poli

cy fo

r dec

entra

lisati

on an

d its

actio

n plan

(PIP

ED),

and s

uppo

rt ela

bora

tion/f

ormu

lation

of a

natio

nal p

rogr

am fo

r dist

rict d

evelo

pmen

t.

Civil

socie

ty:

− Co

re co

ntribu

tion t

o stra

tegic

plans

of 8

Moza

mbica

n CSO

s at n

ation

al lev

el an

d 2 at

prov

incial

leve

l wor

king i

n the

them

atic a

reas

of na

tural

reso

urce

and l

and m

anag

emen

t, gen

der e

quity

, tran

spar

ency

and a

nti-co

rrupti

on,

Publi

c Res

ource

Man

agem

ent.

− Te

chnic

al as

sistan

ce to

Moz

ambic

an C

SO pa

rtner

s in t

he el

abor

ation

, app

licati

on an

d mon

itorin

g of th

eir in

stitut

ional

deve

lopme

nt pla

ns in

cludin

g spe

cific

capa

city b

uildin

g on g

ende

r equ

ity, C

SPM,

and r

isk an

alysis

.

Busin

ess i

ntegr

ity:

− Pr

omote

grow

ing ad

here

nce a

nd th

e ado

ption

of bu

sines

s inte

grity

instr

umen

ts by

comp

anies

, and

impr

ove t

heir m

onito

ring a

nd re

portin

g by b

usine

ss.

− Co

ntinu

ous a

nalys

is of

the dr

ivers,

cons

traint

s, ac

tors,

oppo

rtunit

ies, in

centi

ves a

nd ris

ks fo

r bus

iness

integ

rity in

Moz

ambiq

ue.

Gend

er:

− Pr

omote

equa

l acc

ess t

o and

use o

f land

for w

omen

−

Advo

cacy

mee

tings

with

wom

en's

leagu

es, w

omen

lead

ers,

wome

n par

liame

ntaria

ns an

d offic

e netw

ork o

f wom

en m

ayor

s. −

Roun

dtable

s on l

eade

rship,

politi

cal p

artic

ipatio

n and

powe

r.

Ref

. out

com

e 2

Natio

nal le

vel:

− Pr

omote

, fina

nce a

nd ac

tively

partic

ipate

in the

orga

nizati

on of

confe

renc

es an

d deb

ates o

n key

deve

lopme

nt iss

ues f

or th

e cou

ntry (

anti-c

orru

ption

, dec

entra

lisati

on, tr

ansp

aren

cy, r

esett

lemen

t, natu

ral re

sour

ces e

tc.).

Munic

ipal le

vel:

− Cr

eate,

train

and i

nstitu

tiona

lise m

unici

pal s

ocial

acco

untab

ility m

onito

ring c

ommi

ttees

(Sam

Coms

) in 26

mun

icipa

lities

in ce

ntral

and n

orthe

rn M

ozam

bique

. −

Supp

ort p

repa

ratio

n and

orga

nizati

on of

publi

c aud

its to

facil

itate

partic

ipator

y deb

ate on

mun

icipa

l bud

gets

plans

and t

heir i

mplem

entat

ion in

26 m

unici

paliti

es.

Distr

ict/pr

ovinc

es:

− Tr

aining

of pa

raleg

als at

comm

unity

leve

l to en

sure

orga

nizati

on of

comm

unity

cons

ultati

on on

land

and n

atura

l reso

urce

s acc

ordin

g to t

he la

w.

− Tr

aining

of di

strict

admi

nistra

tions

on le

gal fr

amew

ork o

n lan

d, re

settle

ment

and s

ocial

acco

mpan

imen

t of c

ommu

nity l

and d

elimi

tation

s. −

Civic

educ

ation

and s

treng

thenin

g of lo

cal s

pace

s for

peac

eful m

ulti-s

takeh

older

dialo

gue.

− Re

sear

ch an

d deb

ate on

the i

mpac

t and

confl

ict po

tentia

l of b

usine

ss, e

xtrac

tive i

ndus

tries,

and

rese

ttleme

nt.

Gend

er:

− Sp

ecific

train

ing fo

r wom

en in

lead

ersh

ip, po

litica

l par

ticipa

tion a

nd m

onito

ring o

f pub

lic po

licies

at lo

cal le

vel in

orde

r to i

ncre

ase e

ffecti

ve pa

rticipa

tion a

nd eq

ual o

ppor

tunitie

s for

lead

ersh

ip at

all le

vels

of de

cision

-mak

ing in

po

litica

l, eco

nomi

c and

publi

c life

. −

Docu

ment

and r

eplic

ate be

st pr

actic

e to p

romo

te dia

logue

betw

een l

ocal

gove

rnme

nt ins

titutio

ns (d

istric

t ser

vices

for e

cono

mic a

ctivit

ies -

SDAE

) and

wom

en as

socia

tions

in de

cision

-mak

ing pr

oces

ses.

− Do

cume

nt an

d visu

alise

wom

en's

succ

ess s

tories

in le

ading

the f

ight fo

r impr

ovem

ent o

f wom

en's

lives

at lo

cal le

vel.

− Ro

undta

bles w

ith w

omen

on le

ader

ship,

politi

cal p

artic

ipatio

n and

powe

r.

23

(5

) Res

ourc

es, p

artn

ersh

ips (

Swiss

pro

gram

me)

Ov

erall

doma

in bu

dget:

CHF

29,5

m Pa

rtner

ships

with

: Da

nish

Inter

natio

nal D

evelo

pmen

t Age

ncy

(DAN

IDA)

, Ire

land,

Swed

en, F

inlan

d, Ed

ucaç

ão p

ara

o De

senv

olvim

ento

- IBI

S, C

IP, I

nstitu

te for

Eco

nomi

c an

d So

cial S

tudies

- IE

SE, O

MR, C

entro

de

Terra

Viva

(CTV

), Fo

rum

Mulhe

r, Fo

unda

tion

to su

ppor

t and

stre

ngthe

n civ

il soc

iety i

n Mo

zamb

ique

(MAS

C), I

tC, M

inistr

y of S

tate

Admi

nistra

tion

and

Publi

c Fun

ction

- MA

EFP,

MIT

ADER

, Mini

stry o

f Plan

ning

& De

velop

ment

- MPD

, MEF

, 26

Munic

ipaliti

es (c

enter

-no

rth),

Natio

nal A

ssoc

iation

of M

unici

paliti

es of

Moz

ambiq

ue A

NNAM

, Pro

vincia

l gov

ernm

ents.

Moda

lities

: −

Peop

le-ce

ntred

, equ

ity-o

riente

d and

righ

ts-ba

sed a

ppro

ach.

− Mu

lti-lev

el/sy

stemi

c app

roac

h (mu

nicipa

lities

, dist

ricts/

prov

inces

and n

ation

al lev

el).

− Fo

cus o

n dec

entra

lised

and s

ocial

ly ac

coun

table

use o

f res

ource

s. −

Do no

harm

, CSP

M an

d wor

king o

n con

flict.

− W

orkin

g in p

artne

rship

with

other

deve

lopme

nt ac

tors a

t loca

l and

centr

al lev

els.

− Co

-finan

cing o

f gov

ernm

ent p

rogr

amme

s and

core

fund

ing of

CSO

s. −

Focu

s on M

ozam

bican

CSO

s. (6

) Man

agem

ent/p

erfo

rman

ce re

sults

, inclu

ding

indi

cato

rs (S

wiss

pro

gram

me)

−

Wor

k thr

ough

a co

mmon

fund

or ba

sket

fund m

odali

ty to

mitig

ate po

litica

l risk

s rela

ted to

some

prog

ramm

es an

d inc

reas

es co

st be

nefit

thank

s to a

coor

dinate

d app

roac

h of s

ever

al do

nors

with

the sa

me ob

jectiv

e.

− En

sure

prop

er an

d con

tinuo

us in

terna

l kno

wled

ge m

anag

emen

t in ke

y are

as of

inter

venti

on in

orde

r to m

aintai

n the

SDC

’s go

vern

ance

doma

in as

a po

ol of

expe

rts w

ithin

the do

nor c

ommu

nity a

nd w

ell re

ceive

d adv

iser f

rom

gove

rnme

nt at

all le

vels.

−

As le

ad of

dece

ntrali

satio

n wor

king g

roup

, the S

DC is

able

to im

prov

e the

effic

iency

of th

e don

or co

ordin

ation

and d

ialog

ue on

this

sens

itive t

opic

and i

ncre

ases

effic

iency

of pa

rtner

mini

stries

. −

Dece

ntrali

satio

n pro

gram

mes (

munic

ipal d

evelo

pmen

t) wi

ll be u

pgra

ded i

nto a

natio

nal d

ecen

tralis

ation

prog

ramm

e con

sider

ing le

sson

s lea

rned

, and

expe

rtise f

orm

longs

tandin

g exp

ertis

e and

colla

bora

tion i

n this

area

. −

Conti

nue t

o buil

d on t

he S

DC’s

syste

mic a

ppro

ach t

o civi

l soc

iety c

apac

ity bu

ilding

as in

nova

tive a

ppro

ach w

ithin

Moza

mbiqu

e and

proa

ctive

shar

ing of

less

ons l

earn

ed an

d exp

erien

ce w

ith m

ajor c

ivil s

ociet

y stre

ngthe

ning p

ro-

gram

mes o

f othe

r don

ors (

EU, D

FID,

USA

ID, A

GIR,

etc.)

. −

Elab

orate

inno

vativ

e app

roac

hes a

nd in

terre

lation

s betw

een b

usine

ss in

tegrity

and c

onflic

t sen

sitive

land

and n

atura

l reso

urce

s man

agem

ent.

− Co

ntinu

e to b

uild s

yner

gies b

etwee

n the

SDC

’s int

erve

ntion

s in l

and g

over

nanc

e and

priva

te se

ctor in

terve

ntion

s in a

gricu

lture

and a

gribu

sines

s (IN

OVAG

RO).

− Co

ntinu

e to b

uild s

yner

gies w

ith th

e Hum

an S

ecur

ity D

ivisio

n (HS

D), r

egion

al go

vern

ance

advis

er an

d SDC

them

atic n

etwor

k on c

onflic

t & hu

man r

ights

for th

e SDC

’s int

erve

ntion

s and

wor

k on n

ation

al an

d soc

ial co

hesio

n, co

nflict

and s

tabilit

y. −

Stre

ngthe

n coh

eren

ce an

d syn

ergie

s with

econ

omic

deve

lopme

nt do

main;

with

the e

mbas

sy re

gard

ing bu

sines

s inte

grity

and p

olicy

cohe

renc

e.

− Re

gular

exch

ange

on be

st pr

actic

e and

less

ons l

earn

ed w

ith S

DC th

emati

c netw

orks

on ge

nder

, dem

ocra

tisati

on, d

ecen

tralis

ation

and L

ocal

Gove

rnan

ce N

etwor

k (DD

LGN)

and c

onflic

t & hu

man r

ights.

−

Cons

eque

nt ap

plica

tion a

nd in

tegra

tion o

f CSP

M int

o pro

gram

me im

pleme

ntatio

n as w

orkin

g mod

ality.

24

5 2

Inco

me

and

econ

mic

dev

elop

men

t (I&

ED)

Over

all d

omain

obj

ectiv

e: im

prov

ed m

arke

t opp

ortun

ities a

nd ec

onom

ic ma

nage

ment

for in

clusiv

e gr

owth,

for p

eople

to be

nefit

equit

ably

from

susta

inable

econ

omic

trans

forma

tion (

SDG

8).

1)

Swiss

por

tfolio

out

com

es

2)

Cont

ribut

ion

of S

wiss

pro

gram

me

3)

Coun

try d

evelo

pmen

t out

com

es

Outc

ome 1

: em

ploy

men

t and

inco

me

Small

farm

ers,

with

a par

ticula

r foc

us on

wom

en, a

nd ot

her S

MEs

inc

reas

e the

ir inc

ome t

hrou

gh im

prov

ed m

arke

t opp

ortun

ities,

skills

de

velop

ment,

and a

cces

s to s

ervic

es

1.1 N

et inc

ome1 i

ncre

ase (

millio

n MZN

) for

25 00

0 sma

llhold

er ho

useh

olds

(disa

ggre

gated

by se

x) an

d SME

in th

e nor

th of

Moza

mbiqu

e and

sup-

porte

d by t

he S

DC.

Sour

ce:

INOV

AGRO

, Hor

tiSem

pre a

nd S

ME2

Base

line 2

016:

0 Ta

rget

2020

: 14

0 milli

on M

ZN

Refer

ence

ARI

E1/S

DG8:

Inco

me

1.2 N

umbe

r of m

en, w

omen

and S

MEs g

ained

acce

ss to

form

al or

infor

mal

finan

cial s

ervic

es pr

ovide

d or f

acilit

ated b

y SDC

supp

orted

insti

tu-tio

ns/pr

ojects

in th

e nor

th of

Moza

mbiqu

e. So

urce

: MB

FM an

d INO

VAGR

O Ba

selin

e 201

6: 8’0

00

Targ

et 20

20:

20’00

0

Re

feren

ce A

RI E

2/SDG

8: F

inanc

ial in

clusio

n

Switz

erlan

d con

tribute

s to:

−

Impr

ovem

ent o

f pro

ducti

on fa

ctors

(e.g.

secu

red l

andh

olding

, acc

ess

to an

d use

of im

prov

ed se

eds,

irriga

tion a

nd a

cces

s to f

inanc

ial se

r-vic

es as

well

as cl

imate

-relat

ed ris

ks m

anag

emen

t) th

at wi

ll fas

ten

agric

ultur

al tra

nsfor

matio

n, inc

reas

e pro

ducti

vity,

and h

ence

farm

er’s

incom

e and

food

secu

rity;

− Im

prov

emen

t of th

e reg

ulator

y fra

mewo

rk (e

.g. T

VET

regu

lation

s, be

tter r

ules a

nd re

gulat

ions f

or ru

ral m

arke

ts, se

ed se

ctor r

egula

tion

and s

ervic

es, s

ecur

ed la

ndho

lding

) and

facil

itatio

n of s

ystem

ic ch

ange

s sup

portin

g the

inclu

sion o

f the p

oor in

the m

arke

t sys

tem.

Assu

mptio

ns:

− Th

e gov

ernm

ent o

f Moz

ambiq

ue re

cogn

ises t

he im

porta

nt ro

le of

the

priva

te se

ctor in

agric

ultur

e dev

elopm

ent a

nd po

verty

redu

ction

. −

The p

rivate

secto

r exis

ts an

d is w

illing

to su

ppor

t sma

llhold

ers f

ollow

-ing

a ma

rket s

ystem

s dev

elopm

ent a

ppro

ach.

−

Infra

struc

ture i

s suff

icien

tly go

od fo

r the

priva

te se

ctor t

o rea

ch ou

t to

bene

ficiar

ies.

− Th

e Moz

ambic

an ce

ntral

bank

impr

oves

the r

egula

tory f

rame

work

relat

ed to

finan

cial in

clusio

n.

− Th

e nati

onal

TVET

law

is im

pleme

nted a

nd th

e gov

ernm

ent e

ngag

es

proa

ctive

ly in

prom

oting

voca

tiona

l train

ing.

− Be

nefic

iaries

embr

ace t

he m

arke

t sys

tems d

evelo

pmen

t app

roac

h.

Risk

s: −

Confl

icts o

f inter

est b

y gov

ernm

ent b

odies

and o

fficial

s.

− Go

vern

ment

favou

rs lar

ge co

mmer

cial in

vestm

ents

that a

re no

t inc

lusive

and d

epriv

e sma

ll far

mers

of the

ir lan

d. −

Clim

ate re

lated

risks

nega

tively

affec

t pro

ducti

on in

Nor

thern

Moz

am-

bique

. −

Politi

cal te

nsion

s disc

oura

ge pr

ivate

secto

r inve

stmen

t in ru

ral a

reas

. −

Incre

ase o

f viol

ence

again

st wo

men b

ecau

se of

incre

ased

inco

mes

which

chall

enge

male

-chau

vinist

attitu

des a

nd th

e sub

ordin

ate ro

le of

wome

n. −

Chall

enge

s to i

mplem

entin

g skil

ls de

velop

ment

in lig

ht of

the cu

rrent

legisl

ation

, bus

iness

envir

onme

nt an

d low

emplo

ymen

t rate

.

Outc

ome 1

: Em

ploym

ent is

prom

oted;

prod

uctiv

ity an

d com

petiti

vene

ss ar

e im-

prov

ed, w

ith an

emph

asis

in ag

ricult

ure (

PQG

prior

ity 3)

1.1

Per

centa

ge of

farm

ers a

ssist

ed by

exten

sion u

sing n

ew ag

ricult

ure t

ech-

nolog

ies (c

onse

rvatio

n agr

icultu

re, a

nimal

tracti

on, im

prov

ed se

eds a

nd

fertili

zers)

. So

urce

: PQ

G/PE

S Ba

selin

e 201

4: 17

%

Targ

et 20

19:

not fi

nalis

ed

1.2 P

ropo

rtion o

f adu

lt pop

ulatio

n with

phys

ical o

r elec

tronic

acce

ss to

finan

-cia

l ser

vices

3 pro

vided

by a

forma

l fina

ncial

insti

tution

. So

urce

: Ba

nk of

Moz

ambiq

ue –

Natio

nal S

trateg

y for

Fina

ncial

Inclu

sion B

oM

ENIF

2016

-22 o

r MIT

ADER

Ba

selin

e 201

5: 14

.5% of

the a

dult p

opula

tion

Targ

et 20

22:

40%

of th

e adu

lt pop

ulatio

n

1 a

dditio

nal in

come

“ as a

resu

lt of th

e inte

rventi

on

2 SME

supp

orted

by M

BFM

finan

cing o

r Skil

ls De

velop

ment

Initia

tive.

Focu

s on r

ural

area

s whe

re th

e pro

jects

oper

ate.

3 Inc

ludes

all fi

nanc

ial se

rvice

s pro

vided

by fo

rmal

finan

cial in

stitui

ons i

n Moz

ambiq

ue

25

Ou

tcom

e 2:

Publi

c res

ource

s are

mob

ilised

and

man

aged

for m

ore i

nclus

ive a

nd

susta

ined p

ublic

servi

ce de

liver

y and

econ

omic

polic

ies

2.1 In

creas

ed ca

pacit

y for

dome

stic r

even

ue co

llecti

on, b

y imp

rove

d AT

admi

nistra

tion c

apac

ity, m

easu

red b

y inc

reas

ed ov

erall

scor

es in

the

Tax A

dmini

strati

on D

iagno

stic A

sses

smen

t Too

l (TAD

AT)

Sour

ces:

i) Ann

ual re

ports

from

Tec

hnica

l Ass

istan

ce (T

A) on

reve

nue

mana

geme

nt; ii)

AT

and T

ADAT

follo

w-up

repo

rts on

indic

ators

– im

prov

ed ta

xpay

ers s

ervic

es fo

r frie

ndly

busin

ess e

nviro

nmen

t (re

-du

ced t

ax co

mplia

nce c

osts)

; iii) T

A an

d IMF

-TA

repo

rt on

extra

c-tiv

e ind

ustrie

s unit

impr

oved

capa

city.

Ba

selin

e 201

5: Pe

rform

ance

scor

es –

A-1,

B-4,

C-10

, B-1

1 Ta

rget

2020

: Pe

rform

ance

scor

es: s

ignific

ant r

educ

tion i

n sco

res C

, D

(ann

ual q

ualita

tive a

sses

smen

t of p

rogr

ess i

n cor

e are

as of

lowe

st pe

rform

ance

sc

ores

) 2.2

Poli

cy an

d prio

rity ac

tions

for s

treng

thene

d PFM

at na

tiona

l and

sub-

natio

nal le

vels

are i

mplem

ented

, mea

sure

d by i

mpro

ved s

core

s in p

ub-

lic in

vestm

ent, d

ebt a

nd fis

cal m

anag

emen

t and

fisca

l tran

spar

ency

, tra

nspa

rent

inter

-gov

ernm

ent fi

scal

relat

ions

Sour

ce:

PFM

diagn

ostic

s suc

h as P

ublic

Exp

endit

ure &

Fina

ncial

Acc

ounta

-bil

ity -

PEFA

, Pub

lic In

vestm

ent M

anag

emen

t Ass

essm

ent -

PIM

A,

Fisca

l Tra

nspa

renc

y Eva

luatio

n (FT

E); ii

) PFM

Stra

tegic

Plan

im-

pleme

ntatio

n rep

orts

2017

-19.

Base

line 2

015:

PFM

scor

es

Targ

et 20

20:

Impr

oved

PFM

scor

es

(a

nnua

l qua

litativ

e ass

essm

ent o

f pro

gres

s)

Switz

erlan

d con

tribute

s to:

− St

reng

thene

d mob

ilisati

on of

dome

stic r

esou

rces t

hat m

axim

ises t

he

poten

tial a

nd is

cohe

rent

with

the ob

jectiv

e of im

prov

ed bu

sines

s en-

viron

ment

and g

rowt

h pro

motio

n; −

effici

ent a

nd tr

ansp

aren

t pub

lic sp

endin

g, wi

th a s

pecia

l focu

s on

inves

tmen

t spe

nding

as ne

cess

ary c

ondit

ion to

avoid

the r

esou

rce

curse

and t

o gen

erate

deve

lopme

nt re

turns

; −

Inclus

ive gr

owth

throu

gh ec

onom

ic tra

nsfor

matio

n tow

ards

a mo

re

diver

sified

and p

rodu

ctive

econ

omy,

includ

ing th

e extr

activ

e ind

ustry

se

ctor;

− St

reng

thene

d PFM

capa

city a

t nati

onal

and s

ubna

tiona

l leve

l; −

Incre

ased

capa

cities

for e

cono

mic a

nalys

is cru

cial fo

r sou

nd m

acro

e-co

nomi

c man

agem

ent a

nd po

licy m

aking

. As

sump

tions

: −

Gove

rnme

nt co

ntinu

es to

be op

en fo

r PFM

refor

ms an

d inc

reas

ing

acco

untab

ility f

or m

ore e

fficien

t pub

lic se

rvice

deliv

ery.

− Po

licy d

ialog

ue on

key P

FM re

forms

can e

ffecti

vely

influe

nce s

ignifi-

cant

mana

geme

nt im

prov

emen

ts

− Te

chnic

al as

sistan

ce in

key a

reas

of P

FM an

d rev

enue

man

agem

ent

is de

mand

ed fr

om pa

rtner

insti

tution

s and

contr

ibutes

to en

hanc

ed in

-sti

tution

al ca

pacit

y. Ri

sks:

− Go

M is

not w

illing

to ch

ange

econ

omic

polic

ies an

d pro

cess

es re

lated

to

publi

c fina

ncial

man

agem

ent P

FM an

d a m

ore t

rans

pare

nt pu

blic

reso

urce

alloc

ation

. −

Corru

ption

case

s are

igno

red a

nd fo

cus o

n tra

nspa

renc

y and

good

go

vern

ance

does

not fo

rm pa

rt of

ongo

ing P

FM re

forms

. −

Polic

y dial

ogue

spac

e with

limite

d acc

ess f

or C

SOs a

nd ac

adem

ic ins

titutio

ns.

− No

politi

cal w

ill for

sign

ifican

t fisc

al de

centr

alisa

tion r

eform

s.

Outc

ome 2

: A

susta

inable

and b

alanc

ed m

acro

econ

omic

envir

onme

nt is

prom

oted

(P

QG pi

llar 2

) 2.1

PQ

G pr

ioritie

s: −

Impr

oved

coor

dinati

on in

man

aging

fisca

l and

mon

etary

polic

ies in

orde

r to

ensu

re th

e obje

ctive

s of e

cono

mic g

rowt

h and

mac

roec

onom

ic sta

bil-

ity

− En

sure

reso

urce

alloc

ation

to bu

dget

in ac

cord

ance

with

deve

lopme

nt pr

ioritie

s (so

cial a

nd ec

onom

ic) an

d inc

reas

ed pu

blic i

nves

tmen

t, ens

ur-

ing ef

fectiv

e man

agem

ent b

y imp

rovin

g sele

ction

crite

ria fo

r effic

iency

−

Impr

oved

fisca

l tran

spar

ency

and d

ebt m

anag

emen

t −

Proc

eed w

ith fis

cal d

ecen

tralis

ation

So

urce

: PQ

G- A

nnua

l PES

imple

menta

tion r

epor

ts Ba

selin

e 201

5: Qu

alitat

ive su

mmar

y of p

ublic

reso

urce

alloc

ation

and P

FM

Targ

et 20

19:

Impr

oved

resu

lts ba

sed o

n qua

litativ

e ass

essm

ent

2.2

Susta

ined i

ncre

ase i

n dom

estic

reve

nues

mob

ilisati

on:

− %

fisca

l ratio

−

% ex

tracti

ve in

dustr

ies co

ntribu

tion t

o tax

base

and c

ollec

ted re

venu

es

(incre

asing

) So

urce

: An

nual

PES

imple

menta

tion a

nd A

T re

ports

Ba

selin

e 201

5: Fis

cal ra

tio 26

.1% (o

vera

ll); 25

.2% (e

xclud

ing ex

tracti

ve in

dustr

ies)

Targ

et 20

19:

Fisca

l ratio

27%

(ove

rall);

TBD

for e

xtrac

tive i

ndus

tries

2.3

Redu

ced p

over

ty inc

idenc

e lev

els

(PQG

and g

lobal

strate

gic m

atrix

) So

urce

: Ho

useh

old su

rvey r

esult

s and

pove

rty as

sess

ment

data

Ba

selin

e 201

5: Po

verty

Incid

ence

resu

lts to

be pu

blish

ed O

ctobe

r/201

6 Ta

rget

2020

: Re

duce

d fro

m 20

15 in

ciden

ce le

vel

2.4

Incre

ased

per c

apita

GDP

, rea

l gro

wth r

ates a

nd se

ctora

l com

posit

ion:

focus

on ag

ricult

ure a

nd la

bour

inten

sive s

ector

s So

urce

: IM

F Co

untry

repo

rts; IN

E da

ta na

tiona

l acc

ounts

, ann

ual P

ES re

ports

. Ba

selin

e 201

5: GD

P pe

r cap

ita 54

4 USD

(IMF

); GD

P re

al gr

owth

6.6%

; agr

icultu

re

3.1%

(INE

) Ta

rget

2020

: GD

P pe

r cap

ita 72

2 (IM

F); r

eal g

rowt

h TBD

(incre

ased

from

2015

)

(4) L

ines

of i

nter

vent

ion

(Swi

ss p

rogr

amm

e)

− Inc

reas

e ann

ual y

ield f

or sp

ecific

crop

s (kg

/ha) t

hrou

gh th

e dev

elopm

ent o

f mar

ket li

nkag

es be

twee

n far

mers

(disa

ggre

gated

by se

x) an

d priv

ate se

ctor a

ctors

(MSD

appr

oach

) - *A

RI F

S4 (o

utcom

e 1).

− Su

ppor

t the s

eed s

ector

both

at dis

trict a

nd na

tiona

l leve

l (with

the i

nvolv

emen

t of p

rivate

and p

ublic

stak

ehold

ers)

to en

sure

the a

vaila

bility

of an

d acc

ess t

o imp

rove

d see

d for

small

holde

rs (o

utcom

e 1).

− Im

prov

e acc

ess t

o fina

ncial

servi

ces f

or cl

ients

exclu

ded f

rom

the fo

rmal

marke

t in no

rther

n Moz

ambiq

ue, th

roug

h the

supp

ort o

f fina

ncial

insti

tution

s, sa

vings

grou

ps at

proje

ct lev

el, in

nova

tive f

inanc

ial pr

oduc

ts an

d poli

cy w

ork t

hat

even

tually

will

foster

the d

evelo

pmen

t of fi

nanc

ial in

stitut

ions i

n rur

al ar

eas (

outco

me 1)

. −

Impr

ove r

esilie

nce o

f agr

icultu

re to

clim

ate va

riabil

ity by

supp

ortin

g bes

t pra

ctice

in di

saste

r risk

man

agem

ent a

nd m

anag

emen

t of a

gricu

lture

syste

ms (o

utcom

e 1).

− Co

ntribu

te to

traini

ng yo

ung p

eople

, with

a pa

rticula

r foc

us on

wom

en, to

acqu

ire ba

sic sk

ills to

bene

fit fro

m ma

rket a

nd en

trepr

eneu

rship

oppo

rtunit

ies -

Refer

ence

ARI

EV3

/SDG

4.8:

Voc

ation

al Sk

ills D

evelo

pmen

t and

Emp

loy-

ment

(outc

ome 1

). −

Supp

ort fa

rmer

s’ ec

onom

ic se

curity

thro

ugh i

mpro

ved a

cces

s to l

and a

nd pr

ovide

farm

ers w

ith in

strum

ents

to en

able

them

to vo

ice th

eir rig

hts (

outco

me 1

& Go

vern

ance

). −

Supp

ort to

Rev

enue

Auth

ority

contr

ibutin

g to s

treng

thene

d fina

ncing

capa

city f

or ec

onom

ic de

velop

ment

objec

tives

thro

ugh m

obilis

ation

of do

mesti

c res

ource

s and

soun

d man

agem

ent o

f natu

ral re

sour

ces w

ealth

- cov

ering

key

dimen

sions

- Re

feren

ce A

RI G

O2/S

DG 16

,17: B

udge

t res

ource

s /AR

I GO3

/SDG

16, 1

7: ill

icit fi

nanc

ial flo

ws: c

apac

ities (

outco

me 2)

. −

Budg

et fin

ancin

g, po

licy d

ialog

ue an

d com

pleme

ntary

TA, s

uppo

rting i

mpro

ved p

ublic

finan

cial m

anag

emen

t PFM

capa

city,

contr

ibutin

g to m

ore e

fficien

t and

tran

spar

ent p

ublic

spen

ding.

Poss

ibiliti

es to

be ex

plore

d for

tran

sition

to

stron

ger s

uppo

rt for

PFM

at de

centr

alise

d/dec

once

ntrate

d lev

el. In

creas

ed co

ordin

ation

, cro

ss le

arnin

g and

max

imise

syne

rgies

with

gove

rnan

ce an

d ser

vice d

elive

ry do

mains

(outc

ome 2

).

26

7 −

Supp

ort e

cono

mic p

olicy

analy

sis, r

esea

rch an

d disc

ussio

n in g

over

nmen

t, aca

demi

a and

CSO

s, co

ntribu

ting t

o imp

rove

d poli

cy m

aking

for in

clusiv

e gro

wth,

includ

ing th

e tra

nspa

rent

mana

geme

nt of

natur

al re

sour

ces (

outco

me 2)

(fo

cus o

n con

strain

ts for

inclu

sive g

rowt

h: ag

ricult

ure t

rans

forma

tion,

econ

omic

diver

sifica

tion,

susta

inable

use o

f natu

ral re

sour

ces w

ealth

, gen

der d

eterm

inants

of po

verty

). −

Agric

ultur

e dim

ensio

n for

inclu

sive g

rowt

h cru

cial fo

r stro

nger

link b

etwee

n outc

omes

1 an

d 2. G

ende

r dim

ensio

n of in

equa

lities

and i

nclus

ive gr

owth

to be

enha

nced

. −

Explo

re po

ssibi

lities

for p

rojec

t fina

ncing

or co

-finan

cing b

ilater

al or

mult

ilater

al ini

tiativ

es fo

r stre

ngthe

ning b

usine

ss en

viron

ment

and c

ondit

ions f

or pr

ivate

secto

r dev

elopm

ent b

ased

on S

MEs,

in or

der t

o stre

ngthe

n syn

ergie

s be-

twee

n outc

omes

1 an

d 2.

(5) R

esou

rces

, par

tner

ship

s (Sw

iss p

rogr

amm

e)

Over

all do

main

budg

et: C

HF 28

,25 m

Partn

ersh

ips ou

tcome

1:

− MA

SA (M

inistr

y of A

gricu

lture

and F

ood S

ecur

ity) t

hrou

gh In

ovag

ro, D

FID,

Helv

etas S

wiss

Inter

coop

erati

on, T

he B

eam

Exch

ange

Netw

ork,

SAM

prog

ramm

e (se

ed) s

uppo

rted b

y the

SDC

in Z

imba

bwe,

APRO

SE (N

ation

al As

socia

-tio

n for

See

d Sec

tor P

romo

tion)

. Pa

rtner

ships

outco

me 2:

−

Minis

try of

Eco

nomy

and F

inanc

e (ME

F), M

ozam

bique

Rev

enue

Auth

ority

(AT)

, Moz

ambic

an ac

adem

ic ins

titutio

ns (e

cono

mic r

esea

rch ce

ntres

), CS

Os w

orkin

g in t

he E

xtrac

tive I

ndus

tries T

rans

pare

ncy I

nitiat

ive -

EITI

- Mult

i-Stak

e ho

lder G

roup

- EI

TI-M

SG, D

evelo

pmen

t Par

tners

(GBS

partn

ers a

nd ot

her d

onor

s), IM

F an

d WB

(und

er m

ultila

teral

TA pr

ojects

), an

d pos

sibly

prov

incial

gove

rnme

nts.

Moda

lities

: −

Imple

ment

marke

t sys

tems d

evelo

pmen

t pro

jects

throu

gh m

anda

tes (o

utcom

e 1).

− W

ork i

n clos

e syn

ergy

with

the g

over

nanc

e dom

ain in

issu

es re

lated

to la

nd us

e righ

ts (o

utcom

e 1 &

Gov

erna

nce)

. −

Explo

re fu

ture m

odali

ties f

or di

rectl

y sup

portin

g loc

al ag

ricult

ure d

epar

tmen

ts to

impr

ove s

ervic

e pro

vision

to fa

rmer

s (ex

tensio

n, irr

igatio

n, etc

.) or

do it

throu

gh ex

isting

man

dates

(Outc

ome 1

). −

Explo

re op

portu

nities

for c

ontrib

uting

to im

prov

ed bu

sines

s env

ironm

ent fo

r micr

o, sm

all an

d med

ium-si

zed e

nterp

rises

- MS

MEs d

evelo

pmen

t (str

ength

ened

links

exist

ing S

wiss

finan

ce to

mult

ilater

al ini

tiativ

es, o

r new

contr

ibutio

ns

to oth

er in

itiativ

es) (

outco

me 1

and 2

). Ma

in mo

daliti

es ca

n be t

hrou

gh m

anda

tes, c

o-fin

ancin

g with

dono

rs or

contr

ibutio

ns to

mult

ilater

al ini

tiativ

es.

− Fo

r outc

ome 2

comp

rising

supp

ort to

gove

rnme

nt an

d CSO

s: co

ntribu

tion t

o com

mon f

und o

r othe

r for

ms of

dono

r bas

ket fu

nding

(for

PFM

area

inclu

ding t

axati

on);

targe

ted su

ppor

t und

er gl

obal

initia

tives

(mac

roec

onom

ic ma

n-ag

emen

t and

PFM

) and

proje

ct su

ppor

t to go

vern

ment

institu

tions

, CSO

s and

acad

emic

institu

tions

. (6

) Man

agem

ent/p

erfo

rman

ce re

sults

, inclu

ding

indi

cato

rs (S

wiss

pro

gram

me)

−

Ensu

re sy

nerg

ies be

twee

n agr

ibusin

ess p

rojec

ts wo

rking

in th

e sam

e geo

grap

hical

area

s (co

mplem

entar

ity be

twee

n cas

h cro

ps an

d hor

ticult

ure)

(outc

ome 1

). −

Explo

re fu

ture m

odali

ties o

f sup

port

to CS

Os or

contr

ibutio

ns to

mult

i-don

or in

itiativ

es or

sing

le pr

ojects

(outc

ome 1

). −

Capit

alise

on le

sson

s lea

rnt fr

om th

e imp

lemen

tation

of M

SD pr

ojects

and l

ongit

udina

l eva

luatio

ns of

prog

ramm

es in

orde

r to a

sses

s the

mer

its of

the m

ethod

ology

and b

enefi

ts to

the po

pulat

ion (o

utcom

e 1).

− Pa

rticipa

te in

dono

r coo

rdina

tion p

latfor

ms su

ch as

the A

gricu

lture

Wor

king G

roup

(AW

G), F

inanc

ial S

ector

Wor

king G

roup

(FSW

G) an

d Nati

onal

Seed

Dial

ogue

Plat

form

(APR

OSE)

(outc

ome 1

). −

Use t

he po

licy d

ialog

ue sp

ace t

o adv

ocate

for t

ax po

licy c

oher

ence

with

the d

evelo

pmen

t of m

icro a

nd sm

all en

terpr

ises a

nd ec

onom

ic div

ersif

icatio

n (ou

tcome

s 1 an

d 2).

− Ex

plore

poss

ibiliti

es to

bring

expe

rienc

es an

d bott

lenec

ks fr

om th

e fiel

d to p

olicy

fora

for e

nhan

ced f

inanc

ial se

ctor g

rowt

h (ou

tcome

s 1 an

d 2).

− Le

sson

s lea

rnt a

nd an

alysis

of 20

16 de

bt cri

sis to

be us

ed fo

r poli

cy di

alogu

e and

disc

ussio

n of o

ppor

tunitie

s for

furth

er P

FM an

d eco

nomi

c gov

erna

nce r

eform

s, as

well

as fo

r fee

ding i

nto fu

ture p

rogr

amme

adjus

tmen

ts in

supp

ort

to PF

M str

ength

ening

and g

over

nmen

t sus

taina

ble fin

ancin

g. −

Poss

ible e

ngag

emen

t for e

xtend

ing st

reng

thene

d PFM

and r

even

ue m

obilis

ation

at su

b-na

tiona

l leve

l for b

udge

t sup

port

(eco

nomi

c and

politi

cal c

ondit

ions a

llowi

ng fo

r) to

be in

itiated

on pi

lot ba

sis, in

joint

partn

ersh

ip wi

th oth

er

dono

rs an

d pos

sible

repli

catio

n to o

ther p

rovin

ces w

ith po

tentia

l. −

Polic

y dial

ogue

and d

onor

coor

dinati

on ar

e cru

cial fo

r outc

ome 2

: Swi

ss m

aintai

ning i

nflue

nce P

FM an

d tax

refor

m ar

eas a

nd po

ssibl

y lea

d fun

ction

s in P

FM, g

radu

ally s

hiftin

g to f

ocus

on ta

xatio

n.

Gend

er:

− Co

ntribu

te to

narro

wing

the g

ende

r gap

by su

ppor

ting t

he cr

eatio

n of e

mploy

ment

and i

ncom

e gen

erati

on op

portu

nities

spec

ificall

y to (

youn

g) w

omen

and p

artic

ularly

supp

ortin

g wom

en to

over

come

addit

ional

diffic

ulties

they

trad

i-tio

nally

have

in ac

cess

ing an

d con

trollin

g lan

d, fin

ancia

l ser

vices

and m

arke

ts. T

his is

mea

sure

d thr

ough

the f

ollow

ing ou

tput in

dicato

r: %

of w

omen

acce

ssing

inpu

ts an

d tec

hnolo

gy (s

eeds

, irrig

ation

, land

, fina

nce)

and c

ontro

l-lin

g/mak

ing de

cision

s on t

he us

e of t

heir i

ncom

e. −

Supp

ort a

nalys

is an

d cap

acity

stre

ngthe

ning o

n the

gend

er di

mens

ions o

f exp

endit

ure

and e

cono

mic p

olicy

and s

ystem

s and

contr

ibutin

g to s

treng

thene

d cap

acity

and a

ware

ness

on ge

nder

budg

eting

. −

Indica

tors:

a) nu

mber

, qua

lity an

d deb

ates o

f eco

nomi

c poli

cy re

sear

ch on

gend

er de

termi

nants

of po

verty

and i

nclus

ive gr

owth;

b) an

nual

analy

sis of

publi

c exp

endit

ure t

rend

s affe

cting

wom

en an

d chil

dren

to be

inclu

ded i

n inp

uts

for de

bate

on bu

dget

alloc

ation

s, ex

ecuti

on an

d effic

iency

analy

sis.

27

3

Hea

lth

Dom

ain o

bjec

tive:

impr

oved

healt

h of v

ulner

able

peop

le liv

ing in

rura

l are

as of

Moz

ambiq

ue.

1)

Swiss

por

tfolio

out

com

es

Cont

ribut

ion

of S

wiss

pro

gram

me

Coun

try d

evelo

pmen

t out

com

es

Outc

ome s

tate

men

t 1: s

treng

then

ed sy

stem

Su

b-na

tiona

l sys

tems d

elive

r mor

e equ

itable

, effic

ient a

nd in

tegra

t-ed

healt

h, inc

luding

WAS

H, ba

sic se

rvice

s of h

igh qu

ality

that r

e-sp

ond t

o the

need

s of th

e vuln

erab

le an

d disa

dvan

taged

popu

lation

1.1

Num

ber o

f birth

s atte

nded

by sk

illed h

ealth

perso

nnel

(in C

abo D

elga-

do)4

Sour

ce:

QAD

MISA

U Ba

selin

e 201

5: 69

’172 (

80%

) Ta

rget

2020

: 90

’228 (

85%

)

Re

feren

ce A

RI H

2/SDG

3: H

ealth

syste

ms

1.2 %

of P

ROSA

UDE

funds

alloc

ated t

o dec

entra

lised

leve

l - pr

ovinc

ial

Sour

ce:

REO,

MIS

AU

Base

line 2

015:

35%

Ta

rget

2020

: 80

%

1.3 %

of di

strict

s sub

mittin

g com

plete

sex-d

isagg

rega

ted in

forma

tion w

ithin

the D

IS de

adlin

e So

urce

: (P

ESS

and -

Joint

Ann

ual R

eview

repo

rt AC

A XV

)) Ba

selin

e 201

5: 64

% (D

IS)

Targ

et: 20

20:

95%

( DI

S-20

19)

1.4 %

of he

alth f

acilit

ies w

ith w

ater a

nd sa

nitati

on at

the d

istric

t leve

l (in

Swiss

inter

venti

on re

gions

)

Sour

ce:

MOPH

RH -

Integ

rated

WAS

H pr

ogra

mme5 .

Ba

selin

e 201

5: 10

%

Targ

et: 20

20:

15%

1.5 %

of W

ASH

and h

ealth

budg

et ex

ecute

d at th

e pro

vincia

l leve

l (in

Swiss

inter

venti

on re

gions

) So

urce

: He

alth M

ISAU

(REO

); W

ASH:

Pro

Goas

and G

oTAS

He

alth B

aseli

ne 20

15:

Nias

sa 2.

1%, C

abo D

elgad

o 3.35

%

Healt

h Tar

get 2

020:

5%

WAS

H Ba

selin

e 201

5: 20

Ta

rget

2020

: 40

− Th

roug

h imp

rove

d hea

lth sy

stem,

Swi

tzerla

nd co

ntribu

tes to

a be

tter

and m

ore e

quita

ble an

d inte

grate

d bas

ic he

alth a

nd W

ASH

servi

ce

deliv

ery a

t loca

l leve

l (Swi

ss in

terve

ntion

regio

ns).

This

leads

to be

tter

acce

ss fo

r vuln

erab

le pe

ople

to ba

sic he

alth a

nd W

ASH

servi

ces.

− Sw

itzer

land w

ill ac

tively

contr

ibute

to po

licy d

ialog

ue ai

med a

t sup

-po

rting t

he go

vern

ment

of Mo

zamb

ique i

n its

refor

m eff

orts

and a

t str

ength

ening

the p

erfor

manc

e of th

e hea

lthca

re an

d WAS

H sy

stems

. −

Syste

ms ar

e refo

rmed

and d

ecen

tralis

ed.

− PF

M me

chan

isms a

re in

plac

e. As

sump

tions

−

Minis

try of

Hea

lth (M

oH)6 a

nd M

PW7 a

re co

mmitte

d to d

evelo

ping

and i

mplem

entin

g a re

form

agen

da fo

cuse

d on d

ecen

tralis

ation

and

to a m

ulti-s

ector

al ap

proa

ch.

− De

centr

alisa

tion r

emain

s high

on th

e ag

enda

of G

oM an

d rec

eives

the

nece

ssar

y poli

tical

supp

ort fo

r imple

menta

tion.

− Th

e con

cern

ed m

inistr

ies ac

tively

supp

ort th

e exp

ansio

n and

secu

re

fundin

g for

main

tenan

ce of

healt

h and

WAS

H.

Risk

s −

Resis

tance

of ce

ntral

GoM

with

rece

ntrali

zatio

n ten

denc

ies in

creas

es,

nega

tive c

onse

quen

ces f

or fis

cal d

ecen

tralis

ation

. −

The G

oM do

es no

t ado

pt a l

ong-

term

persp

ectiv

e of fi

nanc

ing de

vel-

opme

nt.

− He

alth i

nclud

ing sa

nitati

on re

mains

low

on th

e age

nda o

f the G

oM.

Coun

try d

evelo

pmen

t out

com

e 1: d

ecen

tralis

atio

n re

form

s A

holis

tic in

stitut

ional

refor

m ag

enda

with

a foc

us on

the s

ystem

de

centr

alisa

tion p

roce

ss is

deve

loped

and i

mplem

ented

(sou

rce:

QAD)

1.1 M

atern

al Mo

rtality

Rate

So

urce

: PE

SS

Base

line 2

011:

408/

100’0

00 liv

e birth

s Ta

rget

2019

: 19

0/ 10

0’000

live b

irths

1.2 %

of fu

nds u

nder

MIS

AU m

anag

emen

t allo

cated

to de

centr

alise

d lev

el- pr

ovinc

ial an

d dist

rict

Sour

ce:

REO,

MIS

AU

Base

line 2

015:

53%

P (4

1%) D

(12%

) Ta

rget

2020

: 60

%

1.3

% an

d num

ber o

f dist

ricts

subm

itting

comp

lete i

nform

ation

with

in the

DIS

and N

ation

al W

ater a

nd S

anita

tion I

nform

ation

Sys

tem -

SINA

S de

adlin

e So

urce

: (D

IS)

Base

line 2

015:

64%

87

Targ

et 20

20:

95%

(DIS

-201

9) 13

7

Polic

ies

1.4 Q

ualita

tive o

bser

vatio

n of g

ende

r-sen

sitive

polic

y imp

rove

ment

and

elabo

ratio

n, im

pleme

ntatio

n of a

ction

plan

s in t

he th

emati

c are

as of

he

alth a

nd W

ASH

dece

ntrali

satio

n and

equit

able

acce

ss to

healt

h and

W

ASH

servi

ces

Sour

ce:

Polic

ies ad

dres

sing h

ealth

and W

ASH

Base

line 2

015:

Gend

er S

trateg

y in t

he H

ealth

Sec

tor 20

09; n

o rur

al sa

nitati

on

strate

gy

Targ

et 20

20:

Upda

ted G

ende

r Stra

tegy f

or th

e Hea

lth S

ector

; elab

orate

d gen

-de

r-sen

sitive

rura

l San

itatio

n Stra

tegy

4 C

alcula

tion b

ased

on po

pulat

ion pr

ojecti

ons a

t 4.5%

acco

rding

to 20

07 ce

nsus

. The

popu

lation

base

for 2

015 i

s 85’1

92, th

e pro

jectio

n for

2020

is 10

6’151

. 5 T

his is

a mu

ltisec

toral

grou

p res

pons

ible f

or th

e plan

led b

y the

Mini

stry o

f Pub

lic W

orks

, Hou

sing a

nd W

ater R

esou

rces a

nd D

irecç

ão N

acion

al de

Aba

stecim

ento

de Á

guas

e Sa

neam

ento

(Nati

onal

Dire

ctora

te for

Wate

r Sup

ply an

d San

itatio

n) (M

OPHR

H /

DNAA

S), w

ith th

e par

ticipa

tion o

f MIS

AU, M

ITAD

ER, M

AE, M

EDH)

. 6 M

inistr

y of H

ealth

. 7 M

inistr

y of P

ublic

Wor

ks.

28

9 Ou

tcom

e sta

tem

ent 2

- co

mm

unity

empo

werm

ent

Rura

l com

munit

ies in

the n

orthe

rn pr

ovinc

es ar

e able

to vo

ice th

eir

need

s and

rights

, and

dema

nd ac

coun

tabilit

y fro

m loc

al go

vern

-me

nts an

d bas

ic se

rvice

prov

iders

2.1 P

ropo

rtion o

f wom

en in

Con

selho

Con

sultiv

o at d

istric

t leve

l (Swi

ss

inter

venti

on re

gion)

So

urce

: (P

ROGO

AS/G

oTAS

) Ba

selin

e 201

5: 26

%

Targ

et: 20

20:

30%

2.2

yy

peop

le (M

/F) g

ained

new

acce

ss to

safe

and a

fford

able

drink

ing

water

(Swi

ss in

terve

ntion

regio

n: 3 P

rovin

ces;

Nias

sa, N

ampu

la,

Cabo

Delg

ado)

So

urce

: Pr

oGoA

S e G

oTAS

Ba

selin

e 201

5: 4’2

68 m

en an

d 4’44

2 wom

en

Targ

et 20

20:

43’55

3 (av

erag

e of 8

’710 M

/F pe

r yea

r)

Re

feren

ce A

RI W

3/SDG

6: B

asic

Servi

ces/

Wate

r

2.3

yy pe

ople

(M/F

) gain

ed ne

w ac

cess

to ad

equa

te an

d equ

itable

sa

nitati

on an

d hyg

iene (

Swiss

inter

venti

on re

gion:

3 pro

vince

s; Ni

assa

, Nam

pula,

Cab

o Delg

ado)

So

urce

: Pr

oGoA

S e G

oTAS

repo

rts

Base

line 2

015:

5’910

men

and 6

’151 w

omen

Ta

rget:

2020

: 60

’305 (

aver

age o

f 12’0

61 M

/F pe

r yea

r)

Re

feren

ce A

RI W

4/SDG

6: B

asic

Servi

ces/S

anita

tion

Switz

erlan

d con

tribute

s to:

− St

reng

then e

mpow

erme

nt of

citize

ns an

d civi

l soc

iety i

n ord

er to

have

an

effec

tive p

artic

ipatio

n for

impr

oving

the s

ervic

es at

loca

l leve

l. −

Enab

ling t

hem

to inf

luenc

e effe

ctive

use o

f pub

lic re

sour

ces f

or he

alth

and W

ASH

servi

ces a

t loca

l leve

l (Swi

ss in

terve

ntion

regio

n);

− To

redu

ce ge

ogra

phica

l ineq

ualiti

es in

healt

hcar

e and

WAS

H se

r-vic

es co

vera

ge, a

cces

s and

use a

re in

creas

ed th

roug

h tar

gete

d sup

-po

rt lik

e tec

hnica

l ass

istan

ce an

d fina

ncial

inve

stmen

t at d

ecen

tral-

ised l

evel.

As

sump

tions

−

Dece

ntrali

satio

n rem

ains h

igh on

the

agen

da of

GoM

and r

eceiv

es

the ne

cess

ary p

olitic

al su

ppor

t for im

pleme

ntatio

n. −

Citiz

ens a

nd C

SOs a

re ac

tive a

nd co

mmitte

d to c

laimi

ng th

eir rig

hts

and p

romo

ting i

nclus

ive de

velop

ment

. −

GoM

maint

ains s

uffici

ent a

nd cr

edibl

e spa

ces f

or C

SO pa

rticipa

tion i

n de

velop

ment

plann

ing pr

oces

ses.

− Lo

cal a

uthor

ities s

treng

then t

heir c

apac

ities i

n par

ticipa

tory p

lannin

g for

enga

ging i

n dial

ogue

with

comm

unitie

s. Ri

sk

− Pa

rticipa

tion f

atigu

e amo

ng ci

tizen

s or C

SOs d

ue to

lack

of re

spon

s-es

or co

ncre

te re

sults

. −

Politi

cal c

onflic

ts un

derm

ine cr

edibi

lity an

d pos

sibilit

y of v

oicing

di-

verse

opini

ons.

Coun

try d

evelo

pmen

t out

com

e 2 -

Serv

ice d

elive

ry

Expa

nded

acce

ss to

and i

mpro

ved q

uality

of he

althc

are &

WAS

H se

rvice

s (so

urce

: PQG

B2/

PQG

B3)

2.1 N

umbe

r of h

ealth

facil

ities w

ith W

ASH

(sour

ce: In

tegra

ted S

anita

tion

Plan

) So

urce

: LO

LE e

Regu

lamen

to.

Base

line 2

015:

30%

Ta

rget

2020

: 45

%

2.2 %

and n

umbe

r of m

en an

d wom

en h

aving

acce

ss to

wate

r infra

struc

-tur

e in r

ural

area

s

Sour

ce:

DNAA

S8 Ba

selin

e 201

5: 54

Ta

rget:

2020

: 64

2.3

% of

peop

le wh

o use

adeq

uate

sanit

ation

infra

struc

ture i

n rur

al ar

eas

Sour

ce:

DNAA

S Ba

selin

e 201

5: 15

% (5

,5 M

– Inh

abita

nts)

Targ

et 20

20:

50%

(9,2

M – I

nhab

itants

) 2.4

Mor

tality

rate

of ch

ildre

n belo

w 5 y

ears

(per

1000

) live

birth

s (PE

SS

2014

-201

9)

Sour

ce:

DHS

(Dem

ogra

phic

Healt

h Sur

vey)

Base

line 2

011:

97

Targ

et 20

19:

55

(4) L

ines

of i

nter

vent

ion

(Swi

ss p

rogr

amm

e)

Ref. o

utcom

e 1:

− Po

licy d

ialog

ue in

colla

bora

tion w

ith th

e gov

erna

nce d

omain

on d

ecen

tralis

ation

of bu

dget

and l

esso

ns le

arnt

from

the lo

cal le

vel fo

r impr

oved

gend

er se

nsitiv

e poli

cies,

strate

gies a

nd pl

ans.

− Te

chnic

al as

sistan

ce, in

cludin

g PFM

, at a

ll lev

els.

− St

reng

then c

oord

inatio

n and

co-fu

nding

mec

hanis

ms at

all le

vels

that in

clude

the p

rivate

secto

r. −

Build

ing ca

pacit

ies of

cons

ultati

ve co

mmitte

es to

addr

ess h

ealth

and W

ASH

in pla

nning

and b

udge

ting a

t dist

rict le

vel.

− Bu

ild th

e skil

ls of

youth

to co

nstru

ct an

d reh

abilit

ate he

alth a

nd W

ASH

facilit

ies.

− Inv

estm

ents

in W

ASH

infra

struc

ture a

nd eq

uipme

nt.

8 D

eclar

ação

dos O

DS do

Sec

tor de

Agu

as 20

15 -

2030

29

Re

f. outc

ome 2

: −

Capa

city d

evelo

pmen

t of c

ivil s

ociet

y org

anisa

tion,

healt

h wor

kers.

−

Prom

ote co

mmun

ity pa

rticipa

tion i

n hea

lth, h

ygien

e and

sanit

ation

. −

Deve

lop ba

sic he

alth s

kills

of ad

olesc

ents

and y

outh,

inclu

ding s

exua

l and

repr

oduc

tive h

ealth

. −

Build

capa

cities

of lo

cal C

SOs t

o con

duct

analy

sis an

d adv

ocac

y. −

Build

ing ca

pacit

ies of

cons

ultati

ve co

mmitte

es to

addr

ess h

ealth

and W

ASH

in pla

nning

and b

udge

ting a

t dist

rict le

vel.

− Ac

cepta

bility

and u

se of

healt

h and

WAS

H pr

ovisi

on th

roug

h fac

ilitati

on of

inclu

sive p

ublic

deba

te at

local

level.

−

Stra

tegic

infor

matio

n gen

erate

d by t

he M

onito

ring a

nd E

valua

tion M

&E sy

stem

is us

ed fo

r evid

ence

-bas

ed pl

annin

g, ma

nage

ment,

advo

cacy

and p

olicy

. Ge

nder

: −

The h

ealth

doma

in co

ntribu

tes to

narro

wing

the g

ende

r gap

in M

ozam

bique

by en

surin

g tha

t qua

lity he

althc

are

and W

ASH

servi

ces a

re of

fered

to m

en an

d wom

en w

ithou

t disc

rimina

tion.

Acce

ss to

healt

hcar

e dep

ends

on a

numb

er of

supp

ly an

d dem

and s

ide fa

ctors.

−

From

the s

upply

side

persp

ectiv

e, the

SDC

will

use p

olicy

dialo

gue t

o ens

ure t

hat h

ealth

prog

ramm

es ar

e gen

der s

ensit

ive, a

ddre

ssing

root

caus

es of

gend

er in

equa

lities

in th

e des

ign an

d imp

lemen

tation

of th

e poli

cies.

−

From

the d

eman

d side

persp

ectiv

e, the

SDC

inter

venti

ons w

ill pr

omote

/influ

ence

equa

l acc

ess t

o hea

lth an

d WAS

H se

rvice

s by p

rovid

ing op

portu

nities

for w

omen

and m

en to

cons

tructi

vely

enga

ge in

chan

ging e

xistin

g gen

der

roles

and e

xerci

se th

eir rig

hts eq

ually

. Spe

cial a

ttenti

on w

ill be

paid

to wo

men’s

and m

en’s

partic

ipatio

n in d

ecisi

on m

aking

on lo

cal h

ealth

and W

ASH

relat

ed po

licies

and p

rojec

ts an

d for

redu

cing t

he ba

rrier

s to a

cces

s to

healt

hcar

e for

wom

en.

(5) R

esou

rces

, par

tner

ship

s (Sw

iss p

rogr

amm

e)

Over

all do

main

budg

et: C

HF 29

milli

on

Partn

ersh

ips w

ith:

− Mi

nistry

of H

ealth

, Mini

stry o

f Pub

lic W

orks

, Hou

sing a

nd W

ater R

esou

rces,

Minis

try of

Fina

nce.

At th

e loc

al lev

el: pr

ovinc

ial an

d dist

rict h

ealth

, fina

nce a

nd w

ater o

ffices

. Mo

zamb

ican r

esea

rch or

ganis

ation

s suc

h as t

he C

entro

de In

vesti

gaçã

o em

Saúd

e de M

anhiç

a (Ma

nhiça

Hea

lth R

esea

rch C

enter

(CIS

M) ;

NGOs

(CIP

, Wiw

anan

a, Ci

vil S

ociet

y Lea

rning

and E

mpow

erme

nt Ce

nter (

CESC

, Co

munic

ação

para

a Sa

úde -

NW

ETI, A

masi,

Ama

, Con

cern

Univ

ersa

l, Neth

erlan

ds D

evelo

pmen

t Org

anisa

tion -

SNV

); Sw

iss pa

rtner

s: So

lidar

Med a

nd H

elveta

s.

− Pa

rtner

s in t

he he

alth s

ector

in Ir

eland

, Den

mark,

Can

ada,

Spain

, Italy

, USA

(USA

ID),

Nethe

rland

s, an

d mult

ilater

al ins

titutio

ns (W

HO, U

NICE

F, U

NFPA

, UNA

IDS,

Glob

al Fu

nd to

Figh

t Aids

, Tub

ercu

losis

and

Malar

ia - G

FATM

, Gl

obal

Finan

cing F

acilit

y).

− Pa

rtner

s in W

ASH

and P

rogr

ama N

acion

al de

Plan

ificaç

ão e

Finan

ças D

esce

ntrali

zada

s - co

mmon

Fun

d UNI

CEF,

DFI

D, A

ustria

, loca

l leve

l par

tners:

Spa

in, U

NFPA

, DFI

D.

− Ex

chan

ge w

ith th

e SDC

Reg

ional

Prog

ramm

e Sou

thern

Afric

a reg

ardin

g hea

lth po

licies

with

in the

SAD

C an

d HIV

/AID

S pr

ogra

mme.

− Ex

chan

ge w

ith th

e SDC

Glob

al Pr

ogra

mmes

Hea

lth an

d Wate

r. −

Partic

ipatio

n and

contr

ibutio

n to n

etwor

ks su

ch as

the S

DC H

ealth

and W

ater N

etwor

k, P4

H an

d Com

munit

y of P

racti

ce H

IV/A

IDS.

Mo

daliti

es:

− Se

ctora

l bud

get s

uppo

rt / s

ector

al co

mmon

fund

s. −

Mand

ates /

contr

ibutio

ns.

− Co

-finan

cing.

− Sy

stemi

c peo

ple-ce

ntred

, equ

ity, g

ende

r-orie

nted a

nd rig

hts-b

ased

appr

oach

. −

Syste

m de

velop

ment

throu

gh a

multi-

secto

ral a

ppro

ach i

ntegr

ating

healt

h and

WAS

H.

− Su

ppor

t for b

oth su

pply

and d

eman

d side

of he

alth a

nd ba

sic W

ASH

servi

ces.

− Ma

instre

aming

gove

rnan

ce an

d gen

der e

quali

ty.

(6) M

anag

emen

t/per

form

ance

resu

lts, in

cludi

ng in

dica

tors

(Swi

ss p

rogr

amm

e)

− Le

sson

s lea

rnt a

nd st

udy f

rom

the lo

cal le

vel a

ble to

impr

ove p

olicie

s, str

ategie

s and

plan

s. −

Soun

d hea

lth fin

ancin

g stra

tegy f

or P

ROSA

UDE,

P4H

and G

lobal

Finan

cing F

acilit

y, PR

OGOA

S an

d GOT

AS, C

abo D

elgad

o Hea

lth, a

nd ne

w pr

ojects

. −

Syne

rgies

and c

omple

menta

rity be

twee

n loc

al an

d cen

tral le

vels

have

an im

pact

on sy

stemi

c refo

rm on

dece

ntrali

satio

n and

alloc

ation

crite

ria fo

r res

ource

s.

− Co

ordin

ation

and l

ead i

n hea

lth w

orkin

g gro

up in

orde

r to p

romo

te de

centr

alisa

tion a

gend

a. −

Repli

catio

n and

scali

ng up

: GOT

AS w

ith D

FID

WAS

H pr

ogra

mme i

n Nam

pula

and Z

ambe

zia, C

abo D

elgad

o Hea

lth to

cove

r WAS

H in

partn

ersh

ip wi

th oth

er do

nors

in or

der t

o pro

mote

dece

ntrali

satio

n age

nda.

− Pa

rticipa

tion a

nd co

ntribu

tion i

n fac

e-to-

face t

hema

tic w

orks

hops

- F2

F an

d the

matic

natio

nal w

orkin

g gro

ups,

WAS

H an

d Hea

lth S

DC ne

twor

ks, c

onfer

ence

s in o

rder

to ex

chan

ge kn

owled

ge an

d les

sons

lear

nt for

bette

r ben

efi-

ciary

impa

ct.

30

Annex 4: Context scenarios, consequences and programme adaptations

Best-case scenario: From potential to reality

Most likely scenario: No war – No peace - No justice

Worst-case scenario: Payback, exclusion and vulnerability

Economy

Economic growth is vibrant or positive over the next 5 years and translates into improvement of living condition for the majority. 2016 public debt crisis is a driver for a process to fundamentally reform economic management and governance. Economic governance is strengthened in a sustained and credible way, allowing for continued inflows of FDI, ODA and increasing investment for economic growth.

Economic growth is still positive over the next 5 years but does not translate into improved living conditions for the majority. Main concerns resulting from current setback on debt management, fiscal transparency and PFM reform are partially addressed, covering only crucial issues, mainly to allow for continued FDI inflows into extractive industries. Crisis taken as opportunity for reform, in particular for addressing public spending efficiency, given trend of reducing ODA flows.

Economic growth is stagnant or negative over the next 5 years, possibly worsening the living conditions of the majority. No government commitment to PFM reforms, integrity and transparency. Limited access to international financial markets and limited productive investment, concentrated on high profit and capital-intensive sectors.

Increasing capital inflows, higher national income and improvement in HDI.

Very slow recovery of balance of payment and debt crisis inflation, depreciation of the MZN and no improvement in HDI.

Inflation and depreciation of the MZN. Withdraw of capital, unsustainable public debt and decrease of HDI.

Decrease of corruption and improved business environment for SMEs.

Ongoing corruption contributes to unfavourable business environment.

Deteriorating economic governance and increase in corruption.

Inclusive and equitable socio-economic development across the country and increase in employment.

Socio-economic conditions remain unchanged, with trend to increasing inequality and continuous high unemployment rates.

Increasing inequality, deteriorating socio-economic conditions and soaring unemployment.

Increasing investments for economic diversification and increasing productivity. Increased public spending across priority sectors for development and improved quality of services.

Potential increase in investments and public services in marginalised regions. Public spending pattern in social sectors is maintained and protected and key determinants of efficiency are tackled.

Drop in productivity and access to public services. Reduced public spending on social and economic priority sectors due to restrictive fiscal policy and debt payments. Deteriorated policy dialogue.

Politics Peace agreement between FRELIMO-RENAMO leading to sustained political settlement, inclusive political system with representation of opposition parties, demobilisation and integration of RENAMO military wing into police and armed forces.

Continuation of current pattern of underlying tense situation as it has been since 1992 with government/FRELIMO keeping a centralist and non-inclusive policy direction and rhetoric and sporadic armed violence between FRELIMO and RENAMO.

Outbreak of armed conflict between FRELIMO – RENAMO because of failed peace negotiations. Loss of political legitimacy, systematic violation of human rights and state failure.

Effective multiparty system at national and decentralised levels with calm, free, fair and inclusive elections.

De-facto one-party system with limited possibilities for opposition parties to influence policy decisions at national and local levels. Increase of violence and unrest before, during and after elections.

Consolidation of one-party-system, increased inter-party frictions, threats and targeted killings of political opponents. Widespread violence throughout the country before, during and after elections.

Broad multi-party, multi-stakeholder debate on key issues for peace and inclusive development leads to constitutional reform and a more effective decentralisation process.

Continuous implementation of current decentralisation policy and strategy with piecemeal reforms of the legal and political framework after consensus in intra-party (FRELIMO) debate.

Complete rollback of existing policies and strategies for decentralisation with full central control of most functions and competencies of government and state.

Independent CSOs and media able to express their opinions and debate key questions for the development of the country publicly and without fear.

Steady pressure on civil society organisations, including threats to leading figures and only few independent media.

Increased and systematic limitation of rights to freedoms of expression, peaceful assembly and association. Exposed opinion leaders leaving the country.

31

Social / humanitarian Structural inequalities decreased due to good management of resources, improving rule of law and more resilience to external shocks.

Structural inequalities remain high due to mismanagement of resources, lack of rule of law and continuous vulnerability to external shocks.

Structural inequalities increase due to mismanagement of resources, lack of rule of law and increased vulnerability to external shocks.

Safe and sustainable return of refugees and displaced people to their communities of origin.

Displacement of populations to neighbouring countries and urban areas due to pockets of violence, food insecurity and lack of basic services (WatSan, health, education).

Major population displacements - refugees and internally displaced persons (IDPs) - within country (rural to urban) and to neighbouring countries due to armed clashes.

Increased resilience to external climate shocks thanks to improved resilience of population and increased preparedness and response capacity of government.

Seasonal and regionally concentrated humanitarian emergencies with temporary increases of health hazards, limited food security and limited access to WatSan and low response capacity of government.

Humanitarian emergency with increase in food insecurity, health hazards and limited access to WatSan due to heavy floods in the north, droughts in the south, decrease of agricultural productivity and decrease in food imports.

Increased geographical coverage and improvement in quality of basic service delivery in rural and urban spaces (WatSan, health, education). Reduced inequalities in service provision and access.

Increasing inequalities in access to and use of basic services with increased vulnerability of women and children, especially in rural and peri-urban areas, due to limited availability and utilisation in rural areas and increased pressure on urban service delivery. Logistics of medicines and medical supplies hindered or halted.

Limited or no possibility of accessing basic services and extreme levels of vulnerability of women and children, especially in rural areas, due to external and internal shocks. Destruction of social infrastructure leads to collapse of service delivery in rural areas and pressure on urban areas where provision of basic services worsens greatly.

Improved access to markets and trade. Conditioned access to markets increased. No access to markets and basic services.

Security With the political settlement, peace agreement, reinforced institutions and gradual development of underprivileged areas, security situation will gradually improve.

Level of criminality and insecurity remains similar due to lack of enforced rule of law and high levels of poverty; political stalemate contributes to pockets of violence.

With escalation of armed conflict due to unsuccessful peace negotiations immediate deterioration of security situation countrywide.

State acting according to the rule of law and able to prevent social unrest and riots thanks to good governance.

Social and political control and use of repressive mechanisms by state with social unrest and sporadic riots.

Deterioration of law and order with military/opposition checkpoints, threats by police and security forces, control of communication and media and social networks.

Full humanitarian access to all technically accessible areas and proactive collaboration with main human right NGOS, UN agencies and donors.

Limited humanitarian access to conflict zones and areas hit by natural disasters, and limited collaboration with UN human rights agencies, humanitarian actors and NGOs.

No humanitarian access to main conflict zones or areas hit by natural disasters with political and military pressure on human rights NGOs and humanitarian agencies, including threats and targeted killings.

Decrease of crime due to enforced rule of law and decrease in inequalities. Decreased space for criminal networks and drug trafficking.

Continuous high levels of theft and crime, and existence of illicit networks for drug trafficking and kidnapping.

Increase in crime and insecurity in urban spaces with strengthened illicit crime networks, kidnapping, drug trafficking and politics.

Decrease of inequalities with improved economic opportunities in urban and rural spaces and equitable access to basic services.

Increased rural-urban migration due to lack of opportunities for development in rural environment putting pressure on basic services in urban areas.

Social unrest in urban environments due to social and economic inequalities and lack of access to basic services.

32

3

Programme adaptations Best-case scenario Most likely scenario Worst-case scenario

Governance domain

Support effective implementation of peace agreement, eventual constitutional reforms and effective decentralisation. Increase systemic work with political parties, judiciary system and parliaments. Align all programmes with government 5-Year Plan and use state systems for the majority of interventions.

Domain objective: Improved governance systems for a more equitable, efficient, transparent and accountable access to and use of resources.

Systematic monitoring of political economy and security context. Maintain humanitarian space, protection of civilians and promote human-rights based approaches through political dialogue and with international NGOs and agencies such as the UN, the International Committee of the Red Cross - ICRC, Médicins Sans Frontiéres (MSF), and the International Organisation for Migration (IOM). Improve synergies with international partners on human rights, natural resource governance, anti-corruption and illicit financial flows.

Full alignment with state systems with all financial transfers on state accounts (central and decentralised levels). Work with provincial parliaments.

Outcome 1 (decentralisation): Decentralized, equitable and transparent management of resources by local government/state institutions, citizens/CSOs and private sector stakeholders.

Focus on programmes in decentralised and accessible urban areas. In accessible rural areas, work directly with a small number of selected districts on local governance. Increased policy dialogue and work on transparency, anti-corruption and business integrity at central and local levels. Enhance risk awareness and improve security management of local CSO partners.

Institutionalize participatory spaces at urban levels. Fully institutionalise natural resource management committees at decentralised levels. Focus on efficiency of upwards and downwards accountability.

Outcome 2 (social accountability): Socially accountable, inclusive and transparent access to and use of resources thanks to constructive multi-stakeholder dialogue between government/state institutions, citizens/CSOs and private sector stakeholders.

Enhance CSPM capacity of implementing partners including monitoring the implementation of the ‘do-no-harm’ approach. Promote multi-stakeholder dialogue at national and local levels with an increased focus on social cohesion, civic education and conflict resolution.

Income and economic development domain

Expand domain activities with exploration of interventions for improving business environment and PFM strengthening (including sub-national level), towards economic conditions for inclusive growth.

Domain objective: Improved market opportunities and economic management for inclusive growth, for people to benefit equitably from sustainable economic transformation.

Possible phaseout/stop of some interventions due to limited/no access or increased risk of misuse of funds.

Scale up and replication with increased number of beneficiaries. Decreased management costs with decreased field presence.

Outcome 1: Smallholder farmers, with a particular focus on women, and other SMEs, increase their incomes through improved market opportunities, skills development, and access to services.

Remote monitoring of activities due to limited access to project areas. Shift to humanitarian approach resp. food security approach to avoid farmers selling their basic assets and ensure that they maintain basic buying/productive capacity.

More focus on and support for specific needs of TA on public financial management (management of fiscal risk, extractive industries, wealth and revenues mobilisation). Stronger support for economic analysis and research. Explore and expand activities on investment, trade and business environment conditions for private sector development (PSD).

Outcome 2: Public resources are mobilised and managed for more inclusive and sustained public service delivery and economic policies.

Immediate halt or suspension and phase out from complementary TA projects to be assessed (focus on PFM), depending on political economy analysis. Define more specific indicators/outcome on policy analysis, natural resource management (NRM) or others. Shift to more support for CSOs demanding accountability and improved economic governance.

33

Best-case scenario Most likely scenario Worst-case scenario Health domain

Scale up and replication with increased number of beneficiaries. Decreased management costs with decreased field presence.

Domain objective: Improved health of vulnerable people living in rural areas of Mozambique.

More frequent context assessments and more control of programme implementation Redesign programmes. Offer humanitarian response.

Less frequent context assessments. More on budget support.

Outcome 1 (system governance): Sub-national systems deliver more equitable, efficient and integrated health, including WASH, basic ser-vices of high quality that respond to the needs of the vulnerable and disadvantaged population.

More frequent context assessments. Humanitarian approach/service provision through NGOs in substitution of national system (WatSan and health).

Replication of best practice. Explore working more with the private sector.

Outcome 2 (community empowerment): Rural communities in the northern provinces are able to voice their needs and rights, and demand ac-countability from local governments and basic service providers.

No more funds are channeled through government systems, make NGOs/CSOs as primary and sole direct recipients of funds.

Culture

Acknowledgement of weaknesses of local institutions; focus on individual initiatives/entrepreneurs in arts (income generation for poverty reduction); focus on children and youth (transmission of skills and experiences).

Objective: To strengthen institutions and platforms that can act as providers of cultural and artistic services to their surrounding communities; as providers of knowledge, space and services to cultural agents; and/or as advocates and promoters of arts and culture in general.

Maintain focus on support for local initiatives.

Provide training and opportunities to test acquired skills. Support new projects and initiatives.

Outcome 1: Vulnerable people are involved in cultural activities as a means of boosting their self-esteem/confidence, sense of responsibility and initiative.

Maintain support for small actions by local agents.

Acknowledge that it is a long-term objective, and thus support mid-/long-term projects.

Outcome 2: Arts and cultural activities promote debates and critical thinking.

Set up a fund for arts in a context of conflict.

34

Annex 5: Swiss Cooperation Strategy 2017-2020 at a glance

Governance outcome 2: Socially accountable, inclusive and transparent access to and use of resources thanks to con-structive multi-stakeholder dialogue between government/state institutions, citizens/CSOs and private sector stakeholders

Income and economic development outcome 1: Smallholder farmers, with a particu-lar focus on women, and other SMEs, increase their incomes through improved market opportu-nities, skills development, and access to services

Income and economic development outcome 2: Public resources are mobilised and managed for more inclusive and sustained public service delivery and economic policies

Health outcome 1: Sub-national systems deliver more equitable, efficient and integrated health, including WASH, basic services of high quality that respond to the needs of the vulnerable and disadvantaged popu-lation

Health outcome 2: Rural communities in the northern provinces are able to voice their needs and rights, and demand accountability from local governments and basic service providers

Governance More equitable, efficient, transparent and accountable access to and use of resources.

Income and economic development

Improved market opportunities and economic management for inclusive growth, for people to benefit equita-bly from sustainable economic trans-formation

Health Improved health of vulnerable people living in rural areas of Mozambique

Gender- Governance -

HIV/AIDS

Domain objectives

Overall goal

Regional and Global programmes

Contribute to poverty reduction by building a more equitable society and facilitating inclusive growth.

Governance outcome 1: Decentralised, equitable and transparent man-agement of resources by local government/state institutions and civil society organisations as well as enhanced business integrity

35

Imprint

Editor:Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDC3003 Berne

Design:Visual Communication FDFA, Bern

Photos:Cover: Dominique Andereggen/flussreifSDC/Joao Costa Zwela, Chico Carneiro (page 14, bottom)

Orders:www.sdc.admin.ch (heading “Publications”)

Specialist contact:Swiss Agency for Development and Cooperation SDCDepartment East and Southern AfricaTel. +41 58 462 34 75, Fax +41 58 464 16 95www.sdc.admin.ch

Berne, 2017, © SDC