IDA at Work www.worldbank.org/mz Acknowledgments This publication was prepared by a team led by Rafael Saute, World Bank Senior Communications Specialist for Mozambique, Mauritius, and Seychelles. The team would like to express its appreciation to all those who contributed to this project. Production: concept development, content, writing, and editing by Rafael Saute Photos: World Bank Collection Layout and Printing: Minerva Print Disclaimer ©2017 International Bank for Reconstruction and Development / The World Bank This work is a product of the sta of The World Bank. The ndings, interpretations, and conclusions expressed in this work do not necessarily re ect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to the above-mentioned author. THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 3 FOREWORD Mozambique and the World Bank have maintained With more than 20 ongoing lending operations in continuous relations since the country joined the our portfolio, we support the government in areas institution in 1984. Over these years, the World as diverse as infrastructure development, including Bank has provided development assistance to water, energy, roads, irrigation, but also agriculture, Mozambique in accordance with the country needs environment, and natural resources management, and priorities, from economic stabilization in the education, health, social protection, governance and 1980s, to post-war reconstruction in the early 1990s, public financial management, among other sectors. to a broader and comprehensive assistance starting in the 2000’s. This IDA at Work brochure highlights IDA results in Mozambique as we renew our conviction that #Africa Today, Mozambique’s overarching long-term Can End Poverty; the term adopted in the region to development challenge is to translate its economic express our steadfast resolve to addressing the root growth into poverty reduction by stimulating a more causes of poverty in Africa and in Mozambique. Mark Lundell diversified and inclusive growth. In a shorter term, the country needs to address the challenges posed We selected a few examples of results offering a World Bank Country Director for Mozambique by the previously undisclosed loans, which led to a glimpse into some of the most impactful work being rapid deterioration of its macroeconomic stability, undertaken by IDA in Mozambique. IDA, also known by restoring investors and development partners’ as the World Bank’s Fund for the Poorest provides confidence. the bulk of the financial support to Mozambique among the five institutions comprising the World It’s against this backdrop that we have recently Bank Group. The country benefited from a total of updated our operational strategy with Mozambique, US$5.4billion in IDA financing to date, 90 percent of renamed Country Partnership Framework (CPF) which in the form of low interest credits. for the period 2017-21. The strategy’s indicative financing envelope is US$1.7 billion from the Bank’s We hope that some of the stories of success illustrated International Development Association (IDA). Under in this brochure serve as an inspiration to the work this strategy, we offer a multifaceted assistance ahead to all who direct or indirectly contribute to that includes lending, technical assistance, and the goal of a country free of poverty. We are proud development knowledge. Considering the country’s to have done our part in addressing some of the debt and fiscal crisis, high priority will be assigned country’s development challenges along the years. to using our knowledge products to strengthen We remain committed to our mission and believe transparency and accountability, particularly related that with everyone joining the fight, Mozambique to State Owned Enterprises, and management of and #Africa Can End Poverty within a generation. public investment and debt, among other pressing issues. 4 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 5 About IDA and Mozambique IDA lends money to Mozambique on concessional as well as the preparation of future operations terms. This means that IDA credits have a zero or where knowledge gaps exist. very low interest charges, and repayments are stretched over 25 to 40 years, including a 5 to 10 Of the current IDA lending portfolio to Mozambique year grace period. comprised of over 20 active funded projects, IDA commitments today exceed US$1.8 billion. Of this IDA lending terms are determined with reference amount, 953.42 million have already been disbursed. to the recipient countries’ risk of debt distress, the In addition, the country currently benefits from 26 level of GNI per capita, and the creditworthiness recipient-executed trust funded operations with a for the International Bank for Reconstruction and total allocation of US$190 million. Development (IBRD) borrowing. IBRD is one of the five institutions of the World Bank Group, which In addition to concessional loans and grants, lends to governments of middle-income and IDA provided significant levels of debt relief creditworthy low-income countries. to Mozambique through the Heavily Indebted Poor Countries (HIPC) Initiative. In April 1998, IDA also provides grants to countries at risk of debt Mozambique was the sixth country to be declared distress. Under the new World Bank Group Strategy eligible and to benefit from the HIPC Initiative, with Mozambique for Fiscal Years 2017-21, the ensuring some $1.4 billion (in nominal terms) in country currentily receives IDA support in the form debt relief. of non-reimbursable grants (zero interest rates) at least for three years starting in 2017. In September 2001, Mozambique reached the completion point under the Enhanced HIPC IDA Analytical and Advisory Work represent a Initiative. Of the total estimated debt-service relief combination of hands-on technical assistance, to Mozambique under HIPC of some $4.3 billion, the results evaluations, policy notes and broader World Bank provided about $1.1 billion. The HIPC reports and are a complement to our investments. Initiative helped to improve Mozambique’s external These knowledge products inform policy dialogue viability and economic sustainability. Consultations with over 400 stakeholders The World Bank Operational The World Bank applied the country-wide, including civil society groups, Strategy for Mozambique following filters to arrive government o cials, development to its new priorities for partners The World Bank has a new operational strategy, renamed Country Partnership Framework (CPF), for Mozambique: its work with Mozambique for the Fiscal Years 2017- 2021.1 The CPF was discussed by the institution’s Board of Directors in April of 2017. Its preparation involved close collaboration with the government, New Findings of development partners, civil society, and the private sector. Strategy the World Bank World Bank’s (CPF) Diagnostic on comparative Mozambique, called advantage relative Systematic Country to other Diagnostic development (SCD) partners Government of Mozambique’s Five Year Program, known as PQG, from its Portuguese 1 Note that the World Bank Fiscal Year starts on July 1st and acronym ends on June 30th each year. 6 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 7 The Strategy (CPF)’s New Priorities Promoting Diversi ed Enhancing Growth and Investing in Sustainability Enhanced Human Capital and Resilience Productivity CPF IDA Financial Commitments The new Strategy (CPF) comes with a new nancing envelope IDA resources IDA Regional, PSW, GPE, PFF, REDD+, FIP, TFs The indicative nancing envelope under the new strategy is US$1.7 billion The core IDA allocation is expected to be from IDA. Approximately US$120 supplemented by resources from million were available during FY17. Regional IDA projects; the IDA18 Private Sector Window (PSW); and From FY18 onwards an indicative IDA recipient-executed Trust Funds (TFs), allocation in the range of US$350-410 including the Global Partnership for million per year is planned subject to Education (GPE), the Global Finance the annual IDA performance-based Facility (GFF), Reducing Emissions from allocation and overall resource Deforestation Degradation (REDD+), and availability. the Forest Investment Program (FIP). PROJECT NAME IDA (USD MILLION) Fiscal Year 2017 Focus Area 2: Investing in Human Capital Education Sector Support Project (AF) 59 Focus Area 3: Enhancing Sustainability and Resilience Social Protection Project - AF (El Nino CRW) 10 Emergency Resilient Recovery Project AF (El Nino CRW) 20 Mozambique Forest Investment Project 15 FY17 Total 104 IDA Indicative Lending for Fiscal Years 2017-21 in Fiscal Year 2018 - 2021 Mozambique Focus Area 1: Promoting Diversified Growth Power Efficiency and Reliability Improvement 150 Integrated Feeder Roads Development Project 150 Regional Power Transmission Developmenta 300 Mining and Gas TA Project - Additional Financing 28 Accelerated Program of Economic Integration DPO IIa 10 Smallholder Agriculture Productivity Improvement (PROIRRI 2) 80 Agriculture and Natural Resources Landscape Management II 40 Focus Area 2: Investing in Human Capital Health Sector Strengthening Project PforR 80 Education Sector Support Program II 80 Water Service and Institutional Support II (AF) 60 Enhancing the Skills Base 60 Strengthening Safety Nets 80 Focus Area 3: Enhancing Sustainability and Resilience Conservation Areas for Biodiversity and Development -- Phase 2 40 Municipal and District Government PforR 100 Mozambique Statistical Capacity Building 62 Secondary Cities Sanitation and Drainage 80 Note: a Regional project National Land Administration 100 b Subject to resumption of policy-based lending Fiscal Sustainability and Resilience DPO seriesb 8 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 9 IDA at Work in Mozambique Results Highlights IDA work in Mozambique spans development assistance to natural resources management, forest and wildlife conservation, sustainable tourism, agriculture, including irrigation, among others. We also support the expansion of access to energy, including particularly in rural areas; social protection; health and education; but also urban development, including water supply and sanitation infrastructure. We support governance; business environment; financial systems; and public financial management. Below are highlights of some of IDA work in Mozambique further developed along the brochure. Agriculture Development, Irrigation • Through World Bank financing to the Sustainable Irrigation Development Project (PROIRRI), small farmers grow and sell rice, maize, baby corn, and vegetables thanks to rehabilitated and new expanded irrigation schemes in selected districts of the provinces of Sofala, Manica, and Zambezia. Thus, more than 6,000 local farmers benefited directly from the PROIRRI project. The project is expected to guarantee, at its conclusion, the irrigation of a total of 3,000 hectares, of which 1,700 hectares dedicated to rice production, 800 to horticulture and 500 to contract farming. Environment, Natural Resources Management, Rural Development • The World Bank supports Mozambique preserve its rich diversity of forest, wildlife and fisheries resources, which are rapidly being depleted. One focus is on the management of conservation areas and the reintroduction of wildlife and reforestation. Another supports communities with alternative sources of income to diversify their livelihoods. A third focuses on the promotion of sustainable tourism in Mozambique where the community has a central role. Likewise, we support sustainable agriculture and fisheries involving the community, with technical assistance, credit lines, and access to technology. Safety Nets • Mozambique benefits from World Bank funding to consolidate its safety net systems and expand the government’s Productive Social Protection Program. Zambézia province, with a poverty rate of close to 70%, has one of the largest beneficiary coverage under this project, which directly benefited 8,500 people in Zambézia province alone and used community consultations to help determine the target beneficiaries. Access to Energy • Through World Bank funding to the Energy Development and Access Project (EDAP), we supported the expansion of photovoltaic solar energy in rural areas not connected to the national grid, thus providing power to more than 500 health centers and 300 schools throughout Mozambique. The project also helped with the construction of new transmission lines. Access to Water • The World Bank through the Global Partnership on Results Based Assistance (GPOBA) invested a $ 6 million grant to expand water services to poor peri urban districts in five major cities in the country: Maputo, Beira, Nampula, Quelimane and Pemba. The project financed piped water to 28,950 houses that were previously not connected to the system, benefiting a total of 468,000 people. Access to Education, Including Higher Education • The World Bank has been supporting the democratization of access to higher education in the country. Through the Higher Education, Science and Technology Project, the institution invested in the development of Distance Learning Systems (DLS) in Mozambique. DLS have helped expand access to basic and higher education throughout the country. Today many people from remote communities do not need to move from one province to another to attend higher education, making education more accessible to more Mozambicans. Improving Health Services • Through the World Bank-funded Health Services Delivery Project, more than 350 new health professionals were trained in Nampula at the Nampula Health Training Institute. New community health agents were also trained and deployed to ensure the effective dissemination of good practices among rural communities and to serve as liaison between rural communities and health professionals. 10 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 11 TRANSPORT, IRRIGATION, AND ENERGY INFRASTRUCTURE 12 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 13 Rehabilitating Vital Infrastructures Macarretane Dam is a vital multipurpose infrastructure contributed to the price stability of rice and vegetables comprised of a railway, a road, and a dam, all in one, in the Southern region of the country. and whose operations had been severely undermined by cumulative malfunctions over the past 12 years, The infrastructure benefited from World Bank mostly caused by the successive and devastating financing for a total of US$32 million used mainly to floods of the years 2000 and 2013. The latter resulted rebuild the dam’s dykes and barriers, thus protecting in the loss of 113 lives and over 170,000 people the dam’s foundations, as well as to rehabilitate its displaced, as well as the destruction of numerous hydro-mechanical system that controls the flow of buildings, including schools, hospitals, and private water to the valley downstream. Edgar Chongo, property, making this episode the worst disaster to hit the Limpopo Basin Director responsible for the Mozambique in the recent past. management of the dam, explained that the floods had led to the erosion of the banks and cracking Elisa Moiane, a 41-year-old widow who traded her job of sections of the dam downstream, threatening as an activist with a local NGO to embrace farming, the stability of the dam’s foundations, which could spoke about the impact of the Macarretane Dam repair potentially lead to its collapse. “An intervention like this on her life. “This dam is a lifeline for us,” she noted. “The was urgently needed,” he noted. “The risk of inaction dam means more tomato and vegetables, and tomato could be the collapse of the infrastructure altogether is life and financial stability for my family,” she said with over time, and with it a destruction of an entire chain a large smile, while placing her produce in boxes for of production and livelihood established in this valley subsequent transportation to markets further away. for over 60 years.” Thanks to IDA investments, Macarretane Dam’s Let alone the deterioration of the infrastructure irrigation system now covers about 37,000 hectares that could potentially lead to the interruption of the of arable land downstream, thus helping to restore road and rail traffic. The railway system on top of the the narrative of Chokwe as the country’s supplier dam is of regional importance, deemed vital in the of food staples. The intervention allowed at least Limpopo Corridor System, which provides access 50,000 people among farmers and traders to resume to Maputo harbor for landlocked countries such as their activities in full, which, per official reports, have Zimbabwe, Botswana, and Zambia. Supporting Rural Electrification José Filimone, a carpenter and wood artisan in Boane the same anymore,” said Laura Chissico, a resident of district in the outskirts of Maputo city, owns a small Moamba district who recalls how life has changed for business with about 5 workers. He tells us how his better. “Now that we have electricity, we have been business is thriving these days thanks to electricity. able to earn 5,000 to 7,000 MTs (about $60 to $100) a “We are now using electric tools, which means working month from the sale of ‘badjias’ and other cookies. We faster, getting better finishing quality, and working even started to use a conventional oven that allowed with much harder wood, something that hardly ever us to diversify our products and expand the business.” happened before,” he recalls visibly happy. “We have bigger orders now, and our lives improved significantly.” As many other residents in Moamba and other districts impacted by the project - including those IDA supports the expansion of photovoltaic solar in the provinces of Cabo Delgado, Niassa, Manica, energy programs, connecting over 500 rural health and Inhambane - Laura used “xiphefo,” a homemade centers and 300 schools throughout Mozambique. unreliable kerosene lamp, as the main source of light, The $120 million IDA-funded program contributed rendering almost impossible any public or commercial to building new transmission lines and distribution activity at night in the district. networks, expanding access to electricity. The program also supports the use of environmental- The World Bank (IDA) is currently in the second phase friendly cooking stoves, which brings down pressure of a $120 million program. As part of this project, on wood fuels, reduces deforestation, and protects which is about to close, 42,500 new clients from women and children against carbon monoxide and peri-urban settlements have been added to the volatile particles emanating from coal. network. Investments under the project include the expansion of existing networks in fast-growing areas Families of the little village of Damo in the Moamba as well as in large cities, including over 400 kilometers District, some 90 kilometers away from the capital of of new transmission and distribution lines. Other Mozambique, remember the times when firewood areas benefiting from World Bank support are the and kerosene lamps were the only sources of light improvements of institutional and regulatory capacity to illuminate the interior of their homes. With World in the energy sector, as well as efforts to extend access Bank support to the Government of Mozambique’s to energy in rural areas through off-grid renewable Energy Development and Access Project (EDAP), life in solutions such as photovoltaic solar panels installed in this and many other villages across the country have the provinces of Inhambane, Manica, Cabo Delgado, changed dramatically in recent years. “My life is not and Niassa. 14 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 15 URBAN DEVELOPMENT, WATER, SOLID WASTE MANAGEMENT, AND SANITATION 16 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 17 Supporting Urban Development Through the Pro-Maputo I&II, the World Bank has been supporting Maputo urban development for the past ten years. The program brought tangible gains to the city of Maputo and its residents, notably by strengthening the institutional capacity of the municipal authorities; investing in urban infrastructures, including roads, walkways, drainage systems, parks, and by contributing to improvements in local governance. Thus, over one million people have access to improved solid waste management services in Maputo city, and more than thirty thousand families were granted land titles, known as DUAT, and there has been an increase in property tax revenue, to name a few examples. George Dimitrov is the name of a populous and flood-prone informal settlement in the outskirts of Maputo which benefited from major investments under Pro-Maputo II. It now boasts new drainage systems, paved access roads, new recreational spaces, a rehabilitated primary school, and improvements in solid waste collection. An estimated 40,000 residents directly benefited from the upgrades, including 2,000 primary school children whose school has been totally renewed. Thanks to the school renovations, Antónia Soquisso, a teacher for more than 12 years in the community, said she felt like the happiest teacher in the world. “The school results of my pupils, the environment around the school and within the community are among the best,” she said. “In the last year and a In George Dimotrov, local businesses have grown With community participation, new facilities such half we had no interruptions due to flooding and to include more than 800 people, mostly women. as a library, a computer training room, a coffee shop, we had an above average enrollment rate for the The support included several initiatives geared and a covered market with stalls to host vendors were first time in years.” towards income generation and social inclusion. developed in the neighborhood. Improving Livelihoods through Greater Access to Clean Water Things have certainly improved for twenty-year-old Dávia Macaneta, from Maxaquene-D, a populous neighborhood in the northeast outskirts of Maputo. Dávia recalls how she used to wake up at 4 or 5AM every morning, walk about a kilometer, stand in line for half an hour to fetch water from a public well. “It took me one or two hours every day just to get 20 liters of water,” she said. Since January 2014 and thanks to the GPOBA project funding, all Dávia has to do is to turn on her water tap. “It’s so easy now, it saves me a lot of time!” she notes with a large smile. Like her, many more residents are thankful for the investments made and the benefits those investments brought about in their lives. The World Bank through the Global Partnership on Output-Based Aid (GPOBA) invested $ 6 million grant to extend water services to poor peri- urban neighborhoods in five major cities in the country, Maputo, Beira, Nampula, Quelimane and Pemba. The project funded piped water to 28,950 households that were previously not connected to the system, benefiting a total number of 468,000 people. Metering and billing is being promoted to encourage people to save water and prevent leakages and waste. In Mozambique, many people who moved to the cities end up in informal settlements without access to basic services such as clean water and sanitation. This has impacted negatively on their health and well-being, especially for women and children. Over the past decade, the country has invested substantial amounts of resources into improving the quality, coverage and maintenance of water and sanitation infrastructures. Investments such as the one under the World Bank funded project have made a huge difference in the lives of shanty town residents in Maputo and elsewhere in the country. 18 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 19 Community Participation and Partnerships, Citizen’s Monitoring Platforms, Open Data World Bank collaboration with Maputo city includes activities aimed at enhancing community participation and engagement through innovative platforms of citizens monitoring, as well as open data innovative approaches, which collectively have the potential to significantly improve the way in which citizens interact with local governments in the city. Maputo became in 2017 the second city in sub-Saharan Africa to have its own Open Data platform—one of many exciting outcomes from its new Open Data Roadmap. The platform arrives at a critical moment. The Mozambican Government is under pressure from the international community to increase its transparency and accountability. In this context, Maputo’s adoption of this technology-enabled transparency and collaboration through open data is not only a strategic decision, but a necessary one. In 2016, another World Bank supported citizen-interface service called MOPA was launched. MOPA helps citizens of Maputo to report problems about their municipal waste management systems and track their local service delivery in real time. Citizens report waste-related issues to the municipal government using mobile phones. This information is fed into a real-time report of issues and resolutions that is open to the public. Data visualization and statistics allow city officials to address problems as they arise and monitor service quality. MOPA opens a channel of communication between the municipality and the people, including those from low-income areas that traditionally lack proper waste services. Addressing Sanitation in Maputo Informal Settlements Lack of adequate sanitation, especially in informal settlements in the city of Maputo, represents a major challenge for municipal authorities. The World Bank has financed the development of the Maputo Metropolitan Sanitation and Drainage Master Plan, as well as its priority works through a project called Cities and Climate Change Project, as well as implemented small scale Peri-urban Sanitation Projects in the urban district of Chamankulo, one of the most populous informal settlements of the capital city. With these investments, it was possible to improve access to sanitation facilities to over 8,000 residents of the Chamankulo District, as well as improve drainage systems and other related infrastructures and services. Looking ahead, the World Bank will support the rehabilitation of the wastewater treatment plant in the Infulene district, and will support the development of a new urban drainage and sanitation project, which, in addition to the City of Maputo, will cover other provincial capitals of Mozambique. HEALTH, SOCIAL PROTECTION, EDUCATION, SCIENCE, AND TECHNOLOGY THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 21 Promoting Excellence in Higher Education Mozambique is benefiting from an IDA supported geology, and safety and environmental engineering, initiative to establish regional centers of excellences in its first 5 years of operation. Over 150 professionals in Africa, known as Eastern and Southern Africa are to be targeted for short training courses during Higher Education Centers of Excellence Project (ACE II). the project lifetime. Of the total beneficiaries, 25% of Mozambique launched its center of excellence in the them are expected to come from other countries in first half of 2017, which is dedicated to the field of oil the region. and gas. The establishment of centers of excellence in Africa, The selection of Mozambique was obtained through started in 2013 with the first ACE project in West a competitive process that involved other countries and Central Africa. All together the region has now in the region under the Regional Project for the 46 centers of excellence representing a platform for establishment of Center of Excellences supported by greater network among professionals across the region the World Bank. The country received $6 million for five and in Africa with focus on science and technology. years under the program. This funding will be used to The World Bank Group is a proud supporter of the develop new programs, expand enrollment, provide ACE as it believes in the merits of supporting the research facilities, build capacity among faculty and development of human capital as the front and center management, and strengthen partnerships with of its global efforts to end extreme poverty and boost leading regional and global institutions as well as the inclusive economic growth. private sector. Reflecting the World Bank Group’s drive for The center aims to be a training hub of excellence at development results, the project employs an national, regional and international levels in oil and approach known as results-based financing, in which gas engineering. It is set to assist the country and money is disbursed when pre-agreed targets are met. the region to fill skills gap in those fields. Among This helps to incentivize the centers and build stronger the expected results, the center intends to train over ownership of goals, and to ensure that both female 200 MSc in petroleum engineering, hydrocarbons and male students from across the region ultimately processing engineering as well as oil & gas related benefit from outcomes. 22 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 23 Expanding Education Access through Distance Learning The World Bank through IDA invested US $ 45 million in support of Higher Education, Science and Technology Project which included support to the development of Distance Learning Systems (DLS) in Mozambique. DLS have helped expand access to basic and higher education throughout the country. Today people from remote communities do not have to move from one province to another to attend higher education, making access more affordable. There are currently 14 institutions providing distance education, benefiting about 52.389 students distributed in 51 courses in Mozambique. The most recent distance learning center serving the central region was inaugurated in 2017 by the President of Mozambique, Filpe Jacinto Nyusi. Financing provided to DLS is a part to a wider World Bank support to higher education project [Mozambique Higher Education Science and Technology Project (HEST) second phase] with a total funding of $ 45 million. The Project has been effective in increasing the number of graduates of higher education in Mozambique. It has also raised the quality of higher education programs and has had a major impact on the country’s research capacity linked to economically relevant sectors. Further, HEST has been important in supporting the Government of Mozambique with the design and implementation of related policies and reforms. Supporting ‘Scientists Supporting Greater Results in of Tomorrow’ Education and Health The World Bank is supporting the “Scientists of Tomorrow The IDA-funded Public Financial Management Program Program” led by the Ministry of Science Technology, for Results in Health and Education shifted the attention Higher Education and Professional Education. The from inputs into results to improve medicines supply program is using the motivational effects of robotics chain and school management. The project adopted to encourage interest in mathematics, science, a problem driven and iterative approach towards technology, and engineering among undergraduate implementation. Government officials focused their young students. attention on identifying bottlenecks to the achievement of results in their sectors, bringing people out of their silos As part of the program, a group of young students to craft integrated solutions. represented the country in the first World Robotic Olympics in Washington, USA in 2017. Weak implementation of Public Financial Management (PFM) systems and procedures had a negative The training in robotics was funded under the IDA- impact on the medical supply chain and school funded Higher Education Science and Technology performance. In the health sector, this led to stock- Project (HEST), which was approved by the World outs, expired or damaged medicines on the shelves, Bank Board in April 2015. Part of the project’s funding and inability to provide treatments to those in need. is supporting the government’s current thrust to In education, weak school governance with limited instilling interest in mathematics, and in building community participation, ineffective supervision, high time capacity building window ensured that sectors capacity in technical and vocational education. absenteeism, and delays or diversions of school funds collaborated with PFM agencies and had the resources contributed to low student retention, completion they needed to implement. A performance based rates, and poor learning outcomes. allocation window allowed the sectors to create their own incentives to drive behavior at the sub-national Since the inception of the program, improvements have level. Coaches and facilitators were assigned to each been made in both health and education targets. Key sector ministry and in each province to support the improvements in the health sector include increasing coordination, behavior change and implementation the availability of essential maternal health medicines discipline needed to reach the targets. at the facility level, which increased from 78.6% in 2013 to 85% to 2015, as well as decreasing the number In the education sector, prior to 2014 the allocation of of treatment sites with stock-outs of a tracer set of education grants to schools was never accomplished antiretrovirals from 27% in 2013 to 5% in 2015. on time. By 2016, 93% of complete primary schools schools had received their education grant by The program also provided a unique support structure February and the majority of districts expenditures on to create a network of reinforcing incentives. A just in education had been re-classified appropriately. 24 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 25 Expanding Access to Health Services Through an IDA-supported project, more than 350 new doctors, and 0.21 nurses per 1,000 people. Although health professionals have been trained and deployed access to key health services such as vaccination for in the province of Nampula and surrounding areas children and pre-natal care has improved between in Mozambique. A total of 455 professionals have 2001 and 2011 and resulted in decreased mortality graduated from the Nampula training institute, which rates for children under five, glaring inequalities receives World Bank support. New community health persist across regions and between urban and rural agents were trained to ensure effective dissemination areas. Among other benefits from the project, a total of best practices among the communities as well as of 455 professionals were expected to graduate to serve as a communication bridge between rural until the end of the project, and most of them communities and health professionals. trained at Nampula’s ICS. Given the high rate of malnourishment among children in rural areas the The Instituto de Ciências e Saúde (ICS) of Nampula, project is also training nutritionists in the City of a rural health training institute in Northern Quelimane, center of Mozambique, to be deployed Mozambique, has deployed more than 351 newly- across the country. trained health professionals in the province and surrounding areas to help tackle the human resource Currently, Mozambique relies heavily on external shortage and improve health in rural communities. financing for its health system. The health budget as a Financed through the IDA-supported Health Service proportion of the total budget increased slightly from Delivery Project, the institute trains qualified health 7.2% in 2012 to 8% in 2013, but remains low by regional workers to reach some of the underserved regions standards, and it offers little space for the government of the country, specifically the Nampula, Zambezia, to increase salaries without reducing financing of Cabo Delgado and Niassa provinces, which make basic inputs. The WB is committed to assisting the up 50% of the country’s total population. Government of Mozambique to tackle some of these challenges, including by supporting improvements in Mozambique’s health system faces acute human the Public Financial Management (PFM) in the health resources challenges, public financial management, sector through a variety of instruments such as those health care financing, health coverage and quality of linking disbursements to PFM reforms in health and care. The country has the fifth lowest ratio of health education, among other supports. workers to population in any country in Africa, with 0.03 Fostering Inclusion through Productive Social Protection Mozambique benefits from the World Bank’s $50 million funded project to consolidate social safety net systems and scale up the Government’s Productive Social Action Program. The Zambezia province, with its 70% percent poverty rate, has one of the largest coverage of beneficiaries under this IDA-funded project, which benefits directly 8,500 people in the province, and uses community consultative mechanisms to determine target beneficiaries. Known as Programa de Acção Social Produtiva or simply PASP from its Portuguese acronym, the program receives World Bank funding funneled through the Social Protection Project, which aims at providing temporary income support to extremely poor households and thus help put in place the building blocks of a social safety net system in the country. The PASP provides an income transfer to extremely poor households who have at least one adult member able to work. Support to beneficiaries in rural and urban areas are provided in return for their participation in labor-intensive public works subprojects. Through their participation in those activities, beneficiary households are able to stabilize their income, begin regular savings and access to economic opportunities, linking them back to complementary activities such as community savings and financial literacy. The program also supports social inclusion through actions that facilitate household access to social services, especially health, education, and nutrition. 26 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 27 AGRICULTURE AND NATURAL RESOURCES MANAGEMENT Promoting Integrated Landscape and Forest Management in Mozambique With a robust series of projects consisting of technical tackled in integrated manner through a landscape- As part of the World Bank ILFM investment portfolio, assistance, investments, results-based finance, and based approach that recognizes the inextricable links Mozambique’s Agriculture and Natural Resources analytical work, the World Bank is employing a multi- between forest and natural resource management, Landscape Management Project, known as SUSTENTA sectoral approach to promoting sustainable land and agriculture development, and energy use. Working aims to reach over 100,000 people by integrating rural natural resources management in Mozambique. primarily in Zambézia, Nampula and Cabo Delgado households into sustainable agriculture and forest- provinces, the ILFM Portfolio collectively works on based value chains in the Zambézia and Nampula Together, these interventions amount to more than a range of activities, from spatial planning, natural provinces. SUSTENTA promotes business-oriented US$200 million. Known as the Integrated Landscape forest management and biomass energy, to fisheries climate-smart agriculture by combining the provision and Forest Management (ILFM) Portfolio, issues are development and climate-smart agriculture. of technical assistance with facilitated access to finance, and other types of support, such as transport and irrigation infrastructure rehabilitation, land tenure regularization and the restoration of degraded areas; establishing links between emerging and smallholder farmers, and micro, small and medium agribusiness enterprises. “Climate-smartness” cuts across SUSTENTA’s interventions, particularly in its support to climate resilient infrastructure rehabilitation, agriculture extension, and the promotion of weather-based index insurance schemes. Furthermore, a zero-dollar contingency emergency response component, enables the Government of Mozambique to request World Bank resources to finance emergencies in the wake of natural disasters. While climate-smart agriculture is at the core of SUSTENTA’s work, other projects under the ILFM Portfolio also provide agriculture support based on the principles of mitigation, enhanced productivity, and adaptation/resilience, including, for example, agroforestry systems under the Mozambique Forest Investment Project (MozFIP). 28 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 29 Supporting Irrigation for Greater Agricultural Productivity For over five years IDA has supported the Government of Mozambique’s Sustainable Irrigation Development Project (PROIRRI), providing a total of $70 million in financing. The objective of the project is to increase agricultural production and raise farm productivity with new or improved irrigation schemes in the Provinces of Sofala, Manica and Zambezia in Mozambique. Maize and rice hold a special place in the lives of many Mozambicans. As a food staple, many rural residents rely on these cereals as a primary source of daily intake of nutrients as well as to generate income. However, the prolonged droughts of recent years, coupled with nonexistent or poor irrigation systems and soil salinization, as well as the rising production costs, have long crippled many small farmers, most of whom are women. Recent developments have given farmers in central Mozambique good reason to be more optimistic. The IDA funded Sustainable Irrigation Development Project (PROIRRI) has helped small farmers grow and sell rice and vegetables through rehabilitated and expanded irrigation schemes in those three central provinces. Over 6,000 local farmers have directly benefited from the project, which is managed by the government’s INIR (Instituto Nacional de Irrigação) and benefits from its complementary funding. At completion, the project is expected to ensure irrigation over a total of 3,000 hectares, of which 1,700 hectares dedicated to rice production, 800 to horticulture, and 500 to contract farming. Improving Forestry Management The World Bank has been actively supporting the Government of Mozambique in activities aimed at reducing deforestation and forest degradation. Some of the ongoing support includes for the develo- pment of a national forest inventory, which will produce an updated map of land use and coverage, detailed forest map, existing species and volumes, annual cut by species and by province, as well as the stock of carbon, among other information. This investment will be complemented by the establi- shment of national certification standards for sustainable management of forestry resources. This work is being carried out in consultations with all stakeholders directly and indirectly involved in activities related to logging. In addition, the World Bank is supporting the government develop its Forest Information System, which will allow the authorities to make forest licensing automatically, improve planning and monitoring of forest concessions, and support forestry inspection services. Other support provided by the World Bank includes reforms in the forest concession systems, such as reviewing the legal and institutional framework related to forest concessions in order to design a new framework on forest concessions; design of a National Forest Program, which will define a 20-year common vision for the sector reflective of the views of various stakeholders that directly and indirectly deal with the sector; strengthening of the forest inspection system; the development of community forestry partnerships to reduce potential for conflicts and improve benefits of forestry exploitation to the communities; and the implementation of payment systems for emission reduction due to deforestation. 30 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 31 South-South Cooperation Some of the specific ongoing learning objectives Marine and Fishery on Sustainable Rural under the MoU include effective public policy reforms for environment and conservation agriculture; Development between innovative measures to increase land regularization; planting technologies for restored areas; value chain Conflicts over the use of marine and coastal resources tend to intensify throughout the world and particularly in Mozambique and Brazil development and the promotion of rural smallholder the African continent. These conflicts result from greater entrepreneurship; and the potential for public-private pressure on the use of marine and coastal resources by partnerships to provide rural credit streams for different actors and for different purposes, including smallholders and agribusinesses. fishing, tourism, extractive industry, transportation, World Bank sponsors Mozambique and Brazil’s among others. At present, the costs of ocean and coastal south-south partnership to improve sustainable degradation are not correctly calculated, and the oceans’ rural development. The two countries share many contribution to human well-being has been heavily similar challenges and opportunities; they are both undervalued. The situation tends to worsen because of biodiversity hotspots, and both grapple with resource climate change, which causes acidification of the oceans exploitation challenges. and adversely affects marine ecology. Mozambique is richly endowed with natural The World Bank is helping Mozambique address some resources including 40 million hectares of natural of these challenges, especially through the regional forests. Despite their tremendous potential, the program known as SwioFish, where Mozambique country’s natural forests are being rapidly depleted is one of the beneficiaries. Some of the results and at an annual rate of approximately 0.35 percent a ongoing investments include: year, representing an annual loss of almost 140,000 The development of a sea and coastal planning; support hectares. to the development of regional and national surveillance systems, which includes the Center for Regional The threat that the current rate of deforestation Coordination of Marine Surveillance to be installed poses to rural livelihoods, wildlife and biodiversity in the region of Catembe in Maputo; support to the habitats, as well as emissions of greenhouse gases development of fisheries information systems as well as generated by deforestation, is significant. related statistics; support to artisanal fisheries through access to credit, infrastructure, and community-based The World Bank is supporting Brazil and Mozambique’s fisheries organizations; and international cooperation, south-south cooperation on the matter, particularly in including under the Regional Fisheries Control Plan sustainable rural development. (PRSP) involving other countries. To that effect, a Memorandum of Understanding The World Bank support to the sector also includes (MoU) spanning a broad range of issues, from land improvements to the management of marine protection management and biodiversity to climate change areas, including in the Quirimbas National Park, the mitigation and adaptation was signed on May 2017 Bazaruto Archipelago National Park, and the Ponta in Maputo between Brazil and Mozambique. do Ouro Marine Reserve, which are provided through another World Bank-funded operation called MozBio. GOVERNANCE, PUBLIC FINANCE MANAGEMENT, AND FINANCIAL MARKETS 32 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 33 Supporting Supporting Financial Inclusion for Greater Inclusiveness Governance of Growth Governance represents a cross-cutting theme in With support from the World Bank, Mozambique has support from the World Bank, provides a roadmap our funded operations. developed a financial inclusion strategy designed to of concerted efforts between public and private increase access to financial services from 24% to 60% financial institutions in support of a greater financial For instance, we are currently working closely with the of the population by 2022. The strategy provides a inclusion. The document sets as targets to reach 40% Ministry of Finance and the Economy to develop better road map for public and private institutions to support of the population with access to physical or electronic mechanisms to manage fiscal risks, including those greater financial inclusion in Mozambique. financial service by 2018, and 60% by 2022. originating from debt ridden state-owned enterprises. “We are in this because we (World Bank) truly believe Developed with technical support from the Financial We are working with the ministries of education that financial inclusion is the surest way to pursue an Inclusion Support Framework (FISF) Technical and health to help strengthen the quality of public inclusive and shared growth in Mozambique,” noted Assistance Program, the financial inclusion strategy is service delivery at the local level, by shifting the Mark Lundell, the World Bank country director for viewed by the country’s financial authorities, including attention from inputs to results in health and Mozambique at the launch of the strategy. He also the Central Bank and the Ministry of Economy and education sectors. reminded that approving a financial strategy should Finance, as its most important instrument in its current not be seen as another bureaucratic milestone, but thrust to accelerate the pace with which financial We have recently supported the City of Maputo in rather an important step towards actually achieving inclusion is taking place in the country. FISF is a developing a citizen feedback application, called financial inclusion. “Recent data shows that countries World Bank Group (WBG) initiative supported by the MOPA, which allows citizens to interact directly with which adopted financial strategies achieved much Government of Netherlands and the Bill and Melinda municipal service providers to improve solid waste higher levels of financial inclusion than those that Gates Foundation. collection in underserved neighborhoods. don’t have a strategy.” The strategy has three pillars; access and use In the context of our Mozambique Forest Investment In Mozambique, about 24% of adults in urban areas of financial services, strengthening of financial Project, we are supporting the Government in its have access to formal financial services, according to infrastructure, and consumer protection and financial efforts to improve forest management and illegal the Finscope Consumer Survey of 2014. Access is even education. The successful implementation depends logging. lower in rural areas, and women are disproportionately on the ability of the state institutions to ensure a under-represented in both rural and urban areas conducive inter-institutional coordination; adequate Finally, in the context of our support to sustainable alike. As the country lags behind its regional peers, a macroeconomic and legal environments; provision natural resource management, especially through our Bank sponsored financial inclusion strategy seeks to of basic infrastructure; and the commitment of the ongoing Mining and Gas Technical Assistance Project expand financial services throughout the country by private financial sector operators. (MAGTAP), we are strengthening institutions that are 2022. The strategy, which benefitted from technical responsible for management of natural resources. IDA CURRENT PORTFOLIO 34 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK 35 Supporting Mozambique’s Priorities The current IDA lending portfolio to Mozambique is large and diverse. As of November 2017, there are over 20 active IDA funded projects with an overall Net Commitment Amounts - IDA ($M) net commitment of over $1.8 billion in benefit of Mozambique. In addition, the country benefits from 26, recipient-executed trust funded operations with a total allocation of $190 million. Below is the list as well as a graph with a distribution by sector. 40.00 62.00 55.00 Transport & ICT 253.57 Health, Nutrition & Population 200.00 81.60 Water 60.00 100.00 Education 429.98 50.00 Social, Urban, Rural and Resilience 180.00 Global Practice Governance 302.31 Trade & Competitiveness List of Current IDA Funded Projects in Mozambique (As of November 2017) Project ID Project Name Area of Focus Net Disbursements Balance Disbursements Commitment ($US Million) (Percentages ($US Million) ($US Million) of total) P083325 Mozambique -Roads and Bridges Management and Maintenance Transport 253.57 189.74 60.69 75.8 Program - Phase II P099930 Health Service Delivery Project Health 81.60 74.11 4.64 94.1 P107350 Water Resources Development Water 102.00 40.09 52.40 43.3 P107598 MZ PROIRRI Sustainable Irrigation Development Irrigation, Agriculture, 59.98 54.83 0.25 99.5 Water P111592 Higher Education Science and Technology Education 82.31 66.72 12.87 83.8 P123201 Cities and Climate Change Urban, Resilience 120.00 81.70 29.61 73.4 P124615 Mozambique Public Financial Management for Results Program Governance 50.00 34.10 11.88 74.2 P125120 Greater Maputo Water Supply Expansion Project Water 178.00 52.47 114.59 31.4 P125127 Education Sector Support Program Education 220.00 146.51 71.59 67.2 P127303 Mozambique - Integrated Growth Poles Project Trade, Competitiveness 100.00 22.89 70.62 24.5 P129524 MZ-Social Protection project Social Protection, Labor 60.00 12.43 44.14 22 P129847 Mozambique Mining and Gas Technical Assistance Project Energy, Extractives 50.00 27.82 18.76 59.7 P131965 Mozambique GEF Conservation Areas for Biodiversity and Environment, Natural 40.00 23.31 13.59 63.2 Development Project Resources P149377 Water Services & Institutional Support II Water 90.00 0.00 92.12 0 P149620 Moz Agriculture and Natural Resources Landscape Management Agriculture 40.00 11.05 28.22 28.1 Project P156559 MZ - Emergency Resilient Recovery Project Social, Rural, Resilience 60.00 23.84 36.77 39.3 P158249 Power Efficiency and Reliability Improvement Project (PERIP) Energy 150.00 0.00 150.49 0 P160033 Mozambique Forest Investment Project Environment, Natural 15.00 0.00 15.78 0 Resources P162621 National Statistics and Data for Development Poverty, Equity 62.00 0.98 63.00 1.5 36 THE WORLD BANK AND MOZAMBIQUE | IDA AT WORK The World Bank Group The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its ve institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development. Who we are With 189 member countries, sta from more than 170 countries, and o ces in over 130 locations, the World Bank Group is a unique global partnership made of ve institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Our Mission To end extreme poverty by reducing the share of the global population that lives in extreme poverty to 3 percent by 2030; and promote shared prosperity by increasing the incomes of the poorest 40 percent of people in every country. IDA THE INTERNATIONAL DEVELOPMENT ASSOCIATION - Known as the fund for the world's poorest countries, IDA barrows money in the form of grants and credits with zero or low interests. Mozambique bene ts mainly from IDA since it became member in 1984. IBRD THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ICSID THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INTERNATIONAL DISPUTES - even though Mozambique has bene ted from an IBRD - Mozambique has never made use of ICSID services. guarantee once, IBRD usually lends to governments of middle-income and creditworthy low-income countries. IFC THE INTERNATIONAL FINANCE CORPORATION - IFC o ers investment, advisory, and asset-management MIGA THE MULTILATERAL INVESTMENT GUARANTEEAGENCY - MIGA promotes foreign direct investment (FDI) into services to encourage private-sector development in developing countries by providing guarantees to investors developing countries. IFC has a large and diverse against non commercial risks such as expropriation, war, portfolio in Mozambique. political unrest among other things. Mozambique is MIGA's member country, and has bene ted from several of its guarantees over the years. Mozambique Annual Brochure November 2017 - November 2018 www.worldbank.org/mz