BACKGROUND

A strong business enabling policy environment is critical to private sector competitiveness, attract investments, and create jobs. However, Mozambique ranks 135th (out of 190 countries) in the World Bank’s 2019 Doing Business Report and is not keeping pace with other countries in implementing reforms. Given the prospective natural gas bonanza, the next ten years represent a critical period for Mozambique to address multiple challenges through increased engagement with the private sector and civil society. An improved policy environment is required for balanced growth beyond the extractives industry, to diversify the economic base through expanding agriculture and other strategic sectors.

The USAID SPEED activity supports policy reform and implementation, which helps improve the business enabling environment and will enhance the role of the private sector in agriculture, trade facilitation, health, energy, water and biodiversity and conservation. The activity also supports policy reform and implementation that strengthens economic governance and public financial management, and enhances the role of civil society, supporting Mozambique’s ability to plan, manage, and finance its own development as part of a long-term journey to self-reliance. 

PROGRAM DESCRIPTION

USAID SPEED provides expert technical services to the Government of Mozambique, public sector institutions and civil society organizations at the national and local levels in support of economic and structural reform in the areas of agriculture, trade, business enabling environment, energy, health, biodiversity conservation and economic governance. USAID SPEED promotes increased policy implementation by developing tools for tracking the progress of implementation and raising public awareness and support of policy reforms

EXPECTED RESULTS AND IMPACTS

Expected results include: 

  • Reduced cost, time and procedures in starting and/or closing a business, trading across borders, paying tax, getting electricity, registering property and dealing with construction permits.
  • Improved policy formulation and implementation processes through Mozambican civil society and think tanks’ contributions of knowledge and analysis.
  • Streamlined procedures for obtaining and/or transferring of land use titles. 
  • Reduced costs and increased access to agricultural inputs.
  • Increased investment in anchor agribusinesses that serve as a positive demonstration for other small, medium and large farms in Mozambique.
  • Streamlined procedures for hiring domestic and foreign workers, obtaining work permits.
  • Implemented policies to facilitate private sector investment in the power sector.
  • Reduced time, cost and procedures for the private sector to participate in different power sector value chains.
  • Capability to enforce Conservation Law regulations and reinforce commitments to CITES strengthened (e.g., counter wildlife/timber crime training for rangers, investigators, prosecutors and judges)
  • Biodiversity, natural capital and ecosystem services incorporated into sectoral investment plans, provincial land-use plans and regional marine spatial plans (e.g., stakeholder engagement to protect Key Biodiversity Areas from harmful growth)
  • Investment in nature-based enterprises and the co-management in Conservation Areas increased (e.g., public-private partnership investment funds increased).
  • A functioning health sector public-private dialogue platform for policy reform, sectoral planning, data collection and information sharing.
  • Implemented policies to enable private sector participation in the health system.
  • An active federation of private sector associations in the health value chain, including private clinics, private pharmacies, drug importers and transporters.