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Mozambique’s independence from Portugal in 1975 was followed by nearly two decades of civil war. In 1992, Mozambique achieved peace and adopted a new constitution including a multi-party system of democracy. Since then, the country's transition to a market-led democracy has been progressing at a steady pace. Mozambique’s status as an essential link to global markets for several landlocked neighboring countries and the potential for growth in its economic ties to the industrial heartland of South Africa underscore the fact that the country’s successful economic, political, and social transitions are vital to the interests of peace, stability, and economic growth throughout Southern Africa. USAID programs in health, democracy, agriculture, and economic growth seek to increase these successes.
IMPROVING HEALTH OF WOMEN AND CHILDREN
Over 60 percent of Mozambicans are without access to health care, with only 650 doctors nationwide. The projected HIV prevalence rate for 2004 is 14.9 percent. USAID aims to build the capacity of the public health system; improve maternal and child survival, health, and nutrition; and ensure basic quality health services are increasingly accessible to the rural poor and management procedures and policies are more accountable. USAID programs increased the numbers of children fully immunized by their first birthday from 26 percent in 2002 to 40 percent in 2004. USAID also trained 120 laboratory staff from more than 30 sites in five provinces in improved laboratory diagnosis of malaria parasites and vector resistance. USAID funding supported the operation of 26 voluntary counseling and HIV testing sites throughout the country providing services to over 35,900 Mozambicans. Home-based care services were provided to over 11,800 chronically ill HIV/AIDS patients by over 6,600 trained volunteers.
STRENGTHENING DEMOCRACY AND MUNICIPAL GOVERNANCE
Although the Government of Mozambique is committed to democracy, it is also characterized by a strong executive branch, a parliament dominated by political wrangling between the two main parties, and a judiciary short on skills, staff, and funds. USAID is providing civic education to improve citizen understanding of their rights and responsibilities as well as their awareness of municipal government authorities. The Agency is working with Ética Mozambique, the only Mozambican anti-corruption nongovernmental organization, to establish 10 anti-corruption centers in the country's provincial capitals. The number of reported corruption cases increased by 33 percent from FY 2003 to FY 2004.
RAISING RURAL INCOMES
Poverty rates in Mozambique are dropping, going from 69 percent of households living in poverty in 1997 to 54 percent in 2003, but there is still a long way to go. USAID is increasing household incomes through opening access to domestic, regional and global markets; expanding the number and reach of rural enterprises; and increasing and diversifying sustainable agriculture output. Revenues from USAID-financed rural enterprise activities more than tripled between 2003 and 2004, rising to nearly $8 million in 2004. Using newly-introduced "best practices," farmers in coastal areas of Nampula Province harvested up to 69 percent more maize per hectare in 2004 than they had in 2002.
INCREASING EXPORTS
According to the International Monetary Fund, the Mozambican economy is very open to foreign trade. Traditional exports such as cotton and cashews have experienced almost no growth, but total exports have risen dramatically due to large investments in an aluminum refinery and a natural gas pipeline to South Africa. Growth prospects are considered favorable. USAID’s program to increase labor-intensive exports removes constraints to investment and trade by helping the Government of Mozambique and the private sector to increase international market access for Mozambican products; enhance Mozambique’s competitiveness by reducing the cost of doing business; and increase tourism and exports in specific sectors such as garments and horticulture. As a result, import/export clearance times improved from 15 to 3 days, and a new simplified decree on contracting foreign labor makes it easier for businesses to hire highly skilled foreigners. This is an essential change in a country working to build up skilled human resources.
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