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Our Impact

Our Impact

Through 2014 SPEED’s remit was broad and spanned all sectors of the economy. During 2015 as part of Africa Lead II SPEED’s principal focus is on agriculture as a catalyst for development. The Program continues to emphasize the policy implementation process, including monitoring implementation of reforms with particular reference to those reforms in the New Alliance framework. The SPEED team delivers training and technical assistance that builds the capacity of business associations and corresponding government institutions and catalyzes trade and investment for agriculture in Mozambique.

The SPEED approach is demand-driven and flexible, placing a high premium on the use of Mozambican expertise to achieve sustainable results.

Our impact described in this section is divided into four thematic areas and covers the period 2010 – 2014:

  • Business environment, trade and investment;
  • Agriculture,
  • Tourism and biodiversity,
  • Democracy and governance.

The page also summarizes capacity-building activities between 2010 and 2014.

Business environment, trade and investment.

SPEED’s work on business environment, trade and investment is divided into seven key areas: trade facilitation, doing business, public-private dialogue and the business environment, competitiveness, employment, investment and infrastructure.

Under trade facilitation, the Partnership for Trade Facilitation (PTF) funding mechanism supported work with Mozambique’s Tax Authority (AT), focusing on three main areas: internet publication of customs regulations and documents; improvements in transit trade within the Single Electronic Window (SEW); and gradual elimination of pre-shipment inspections. SPEED’s relationship with AT strengthened significantly over the lifetime of the PTF project which has in turn facilitated other work undertaken by the Program.

An international trade website was launched in line with Bali recommendations and was disseminated widely, ensuring Mozambique’s compliance with this WTO requirement. The findings of SPEED’s recommendations on the roll-out of the Single Economic Window (SEW) platform for online customs operations were accepted by AT and generally incorporated into the roll-out subsequent modules. SPEED responded to the private sector’s concerns about transit cargo regulations, and supported AT in revising them, and assisted AT to disseminate and implement the new regulations. SPEED’s assessment of the existing pre-shipment inspection (PSI) system recommended a migration strategy from PSI to a Risk Based Inspection. This work equipped AT with the information and tools necessary to migrate systems based on Bali requirements.

Under Doing Business, SPEED helped improve Mozambique’s rankings in the World Bank’s indicators on this subject. Work included supporting development, dissemination and implementation of an insolvency law; streamlining construction licensing procedures in Maputo and looking at such procedures in Quelimane; improving the system for registering property; assessing a legislative proposal for private credit bureaus; making it easier to pay taxes and providing information to businesses about the legal framework for tax; and simplifying the procedures for registering businesses. SPEED’s work contributed to Mozambique rising 7 places n the 2014 ranking and 15 places in the 2015 ranking, the highest increase in Mozambique’s history. SPEED also analyzed the impact of Central Bank procedures on the business environment.

An effective Public-Private Dialogue (PPD) is crucial to successful reforms. The Program focused on supporting the development of the national Business Environment Strategy, taking action on nine out of the twelve target areas in the strategy. SPEED also worked with the business community to assess the evolution of PPD over time and develop a new model for PPD.

The country’s competitiveness became an increasing topic of debate as a result of SPEED’s work. This effort began with analysis of Mozambique’s competitiveness in SADC and moved through a comprehensive series of studies and dissemination activities related to the country’s competitiveness in light of the coming resource boom. Competitiveness work includes contributing to the debate about an industrial policy; examining competitiveness in the manufacturing sector, supporting IPEME (SME Institute) to analyze opportunities and constraints facing SMEs, leveraging their “100 Top SMEs” prize, and focusing on levels of decision-making at the different levels of government with a view to equipping business with tools to advocate for increased reform.

Employment is a critical issue for economic development and a major concern for business. SPEED analyzed the competitiveness of Mozambique’s labor market. Concerns about an influx of foreign workers led to the need to analyze their role in the economy. Declarations of ad-hoc public holidays proved costly to the economy and SPEED supported the business community with analysis to support advocacy in this area as well as in advocating for changes in the way visa rules are applied and the actions of trade unions in charging fees to business for delivering legally required services. SPEED also provided ongoing support to its strategic partner, CTA, in minimum wage negotiations.

Investment has been growing over the lifetime of SPEED. The Program was called upon by the business community to support it in advocating for a more investor-friendly environment, including analyzing several policies: the foreign exchange legislation; the impact of Central Bank procedures on the business environment; legislation relating to public—private partnerships; the competition law; and Special Economic Zones.

Infrastructure is critical to development and key constraints identified by business included mobile telephony and electricity access and quality, both of which were analyzed by SPEED.

Agriculture

Agriculture is a critical sector for Mozambique’s economy. From small scale family sector farmers through to major commercial agriculture projects, each has a contribution to make to the development of the economy. Mozambique has committed through the New Alliance and Feed the Future initiatives and its agriculture development plans and strategies to promoting agriculture development based on the participation of business. However these initiatives are framed within the country’s coming resource boom which is likely to transform the economy and brings with it the risk of Dutch Disease. The impacts of the economic transformation are likely to be strongly felt in the agriculture sector, with increased costs such as labor and imported inputs as well as a rise in land conflicts. However with these challenges could also come opportunities such as more competitive exports and a diversification of crops as well as a growing national consumer base.

At the same time the agriculture sector faces significant challenges in access to land, infrastructure, skills, and inputs. Mozambique is well-placed to take advantage of shortages within the region and is a potential transport hub for the export of agricultural commodities. It is a fertile country with significant areas of land for cultivation. Both companies and individuals in the sector are involved in innovation and experimentation

SPEED’s work on agriculture has been a major Program focus. With three-quarters of the population dependent on agriculture for their livelihoods, there is consensus both globally and within the country that the private sector needs to play a leading role in developing the sector.  SPEED’s activities to support the competitiveness of agriculture in Mozambique centered upon providing a Senior Economic Advisor to the Minister of Agriculture, whose primary responsibility was to develop and implement the country’s Agriculture Investment Plan.  A central focus of the Senior Economic Advisor and the rest of the SPEED team, has been support to the Government of Mozambique to implement policy commitments under the New Alliance for Food Security and Nutrition (New Alliance).  In addition, SPEED supported a number of targeted activities that have been specifically identified by the private sector in agriculture. An example of this is work on land – both training officials on how to more effectively issue land use rights and assessing new regulations on land leasing. Another example entails international trade, seeking to support removal of non-tariff barriers such as inappropriate application of scanners or the introduction of unnecessary bureaucracy at the Nacala terminal.

In addition, SPEED built capacity at MINAG’s CEPAGRI to provide services to investors, including New Alliance companies that signed Letters of Intent under the New Alliance (LoI companies). The Program communicated agriculture messages related to the New Alliance through its innovative Agro.Biz media partnership with the Confederation of Business Associations (CTA) and Soico. The media outreach also served to communicate the results of the Program’s work on agriculture competitiveness. Other activities included focusing on taxes in agriculture, reviewing legislation on nutrition and supporting discussions around the role of mobile money in the agriculture sector.

In addition concerns of government, private sector and consumers were taken into account in developing an analysis of cross-border pricing mechanisms and differentials between major retailers in Mozambique and South Africa

Tourism and biodiversity.

SPEED’s work in biodiversity and tourism helped Mozambique realize its potential competitiveness in the sector.  Tourism is widely seen as one of the most effective ways of preserving biodiversity, as market forces all pull in the same direction – consumers and service providers all have an interest in preserving the natural environment and ensuring sustainable use of natural resources.  In addition, tourism tends to be labor-intensive, thus providing opportunities for broad-based economic growth as well as biodiversity.

The majority of SPEED’s effort helped ensure a private-sector friendly legal and regulatory regime which has included analysis of proposed tourism regulations, and as a follow up to these regulations, development of a bilingual guide to the legal framework to support investors, and an examination of competition in aviation (Open Skies initiative). SPEED analyzed the impact of renewed conflict affecting the country on the tourism sector and followed this analysis with a broader assessment of tourism competitiveness. SPEED provided direct support in the form of an advisor to both the Ministry of Tourism and ANAC (conservation areas administration), as well as supported BIOFUND to analyze and develop a manual for implementation of the new Conservation Law.

Democracy and Governance.

SPEED’s work on democracy and governance aimed to improve transparency around issues such as the impending resource boom, the increased voice of the private sector in policy, and the improvement of corporate ethics.  Specifically, SPEED raised the quality and level of dialogue around the country’s resource boom, with a special focus on examining the impact of the boom on the competitiveness of the rest of the economy. Another key area of work included the development of a legal framework to formalize public participation in the policy process.  There is now a solid consortium of actors from the private sector and civil society committed to drive this new legislation forward.

Another major focus of the Program was on communication for policy change (C4PC) including training journalists in economics, rolling out an extensive communication program based on SPEED’s web site, blogs and social media and the Agro.Biz media project. In addition the Program supported the private sector with analyses of key legislation affecting the extractives industry sector and supported the Attorney General’s office to leverage funding to support the implementation of the Public Probity Law.

Capacity building.

As part of the core technical work described above, SPEED provided institutional support and capacity building to a wide range of public and private partners. Institutional support was provided to private sector organizations including CTA, AMCHAM Mozambique, the Alternative Dispute Resolution Commission, the Center for Mozambican and International Studies, ACIS, and the Institute of Directors. Public sector beneficiaries of SPEED’s institutional support included the Ministries of Industry & Trade, Agriculture, Tourism, Finance, and Justice. SPEED worked with 34 Civil Society Organizations. Capacity-building and outreach activities reached 8,362 people of which 1,750 were women.

Please see related documents here

The information provided on this Web site is not official U.S. Government information and does not represent the views or positions of the U.S. Agency for International Development or the U.S. Government. This website is made possible by the support of the American People through the United States Agency for International Development (USAID.) The contents of this website are the sole responsibility of Nathan Associates Inc. and do not necessarily reflect the views of USAID or the United States Government

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