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Finnish development cooperation in Mozambique

Mozambique is one of the world's poorest countries, which still suffers from the political, military and economic instability after the civil war. Extreme poverty has decreased, but almost half of the population still lives below the poverty line. Mozambique has abundant natural resources, but their exploitation is only getting started. At the earliest, they are expected to bring in significant revenues in about ten years. The focus of Finland’s support to Mozambique is on developing basic education, developing democracy and strengthening governance, and improving food security among the poorest farmers.  Finland's planned budget frame for Mozambique in 2016–2019 is EUR 52 million.

In 2015 Mozambique ranked 181st in the UNDP Human Development Index. About half of the population is illiterate, 43% of the under five-year-olds suffer from chronic malnutrition, and social inequality is growing.

pdfCountry strategy for Development Cooperation, Mozambique 2016–2019

Infograafi Mosambik, englanti

Commercial cooperation

During the period 2016–2019 the main objective of Finland is to develop commercial-economic cooperation, alongside with the traditional development cooperation. Cooperation with private stakeholders is to be increased. Commercial cooperation will also be promoted via the development cooperation instruments, through the Finnpartnership and BEAM programmes and support from Finnfund in particular.

Cooperation by civil society organisations

Several Finnish civil society organisations support societal development in Mozambique in collaboration with the country’s civil society actors.  The key priorities include strengthening democratic development, promoting human rights, improving government transparency, ensuring debt sustainability, and sustainable use of natural resources.

 Results:

  • The objectives for the education sector have been exceeded, in part with Finland's support. Nearly 90 per cent of children enter comprehensive school. The school network has expanded, new schools have also been built in rural areas, and especially girls have benefited from this development.

  • The percentage of girls who attend school has grown steadily each year, and girls also complete their studies more often than before. More teachers have been hired, and the regional inequality of education has declined.

  • There are now many more teachers with an education in teaching than before. The standard of education is still very low.

  • Education in the native language has been increased and efforts are made to extend this stepwise to the whole country. Teaching provided in the native language is clearly linked to learning results. Finland has been active in this and provided financing for teaching.

  • Finland’s assistance has been used to produce new research information on poverty and inequality in support of public discussion and political decision-making.

  • Projects supported by Finland have reduced malnutrition in the Zambezia Province.

pdfAnnual Results Report on Country Strategy for Development Cooperation, Mozambique

Risk management

The greatest risks in implementing the country strategy in Mozambique are linked to corruption and shortcomings in the state's financial administration. The risks also include overexploitation of natural resources and problems related to the distribution of the income derived from them. Reducing poverty and inequality requires political commitment by the Government to implement an economic policy that also benefits the poor.

Finland aims to strengthen the country’s research capacity and institutional competence for the planning and monitoring of public sector finances.  Finland's financial contributions and the projects are monitored closely.

Extreme weather events such as destructive floods and droughts occurring yearly are also a threat to sustainable development in Mozambique.

Support provided by Finland:

Education:

  • Support via the Education Sector Support Fund (FASE) EUR 9 million a year.

  • Support via Finnish CSOs EUR 1 million a year.

Established democracy and good governance:

  • Research cooperation with the Eduardo Mondlane University and the Ministry of Finance of Mozambique EUR 0.75 million a year.

  • Institute for Economic and Social Research (IESE) EUR 0.5 million a year.

  • Democratic governance of the natural resources sector in cooperation with Demo Finland EUR 0.5 million a year.

Reducing malnutrition in rural areas:

  • Support to farmers via the non-governmental association ADPP EUR 6 million in 2016–2018.

Multilateral cooperation:

  • Finland also supports the economic and societal development of Mozambique by financing the work of the UN organisations and international financial institutions. The key partners are the UNICEF, UNFPA, UN Women and WFP, as well as the World Bank and the African Development Bank.

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