Decentralization for Inclusive Development

Mozambique began the process of decentralization in the 1990s, following the opening of political space and the end of the civil war. The decentralization reforms since the 1990’s have brought some important democratic gains with regard to political participation and inclusion - specifically female participation has increased - oversight and political pluralism. Despite a decline in poverty over the last decade, inequality and regional imbalances have increased. Welfare levels remain low in the northern and the central regions of the country compared to the South.
As agreed during the (third) peace process, the country is going through a new phase of decentralization reform, which includes the creation of new decentralized governance bodies at the provincial and district levels. However, the peace reform agenda has been weakened in subsequent constitutional amendments and legislation, which maintain the organizational logic of a unitary state. In this context, the new decentralization framework for Mozambique presents enormous political, social and practical challenges. This is happening at a time of major changes in the political economy of Mozambique, in which government and the citizens face profound health, poverty, conflict and state fragility challenges.

Switzerland in its role as the main broker of the successful peace process and with its many years of successful involvement in various decentralisation and PFM projects to date, is excellently positioned for this new project.

Local government from Niassa Province: 

-    618’000 inhabitants in 3 districts (Lago Niassa, Lichinga and Mandimba.) incl. their 3 municipalities;

-    111’000 inhabitants in Cuamba municipality

Local government from Nampula Province:

-    393’000 inhabitants in 5 municipalities (Angoche, Malema, Monapo, Ribaué, Ilha);

National Association of Municipalities

Ministry of State administration and Public Service (MAEFP)

Ministry of Economy and Finance (MEF)

Ministry of Land and Environment (MTA)

Outcome 1, Supply side:    local governments improve their financial governance processes especially in terms of revenue mobilization (own resources and transfers), gender-sensitive budget planning and execution, procurement, internal control, human resources management, enable better quality services delivery that also respond to the needs of the vulnerable and disadvantaged population.

Outcome 2, Demand side:    citizens and particularly youth and women interact, channel demand and needs to district and municipal authorities and participate in the process of oversight and decision-making of local governments and private sector to provide basic services.

Outcome 3, Policy and Advocacy:    Policies at provincial and national levels are influenced and strengthened.

Resultados previstos:  

Supply Side:

-    Improved financial governance in selected municipalities; 

-    Gender-sensitive & local adaptation mainstreamed in decentralized planning and budgeting; 

-    Decentralized resilient investments and services delivered and managed efficiently, effectively and transparently.

Demand Side:

-    Women and men aware of their civic rights and duties and demanding greater accountability;

-    Constructive and regular dialogue between subnational government and citizens (women and men).

Learning and policy influence:

-    Good practices, lessons learned and success stories disseminated i.a. in Civil Servant Training Institutes; 

-    Dialogue spaces between local governments at provincial level promoted;

-    Dialogue between local and national level promoted.

Resultados de las fases anteriores:  

-    Focusing on sustainable capacity building in key technical areas of municipal development and governance; 

-    Providing financial means to municipal budgets for investment and infrastructure is a means for capacity building, not an end in itself;

-    Performance-based financing facility enhances municipal ownership, capacity and creativity;

-    lmproved quality of demand by citizens for municipal services contributed to an improved management of municipal investments, construction and maintenance of infrastructures.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

United Nations Capital Development Fund (UNCDF) 

-    Government at the national, provincial and district level;

-    Provincial programs of the World Bank (WB), United States Agency for International Development (USAID), United Kingdom (UKaid); 

-    Key actors in the sector: WB, United Nation Development Programme, International Monetary Fund (IMF), UK Aid, Irish Aid, USAID;

-    Swiss Development Cooperation health programme in Niassa; 

-    Swiss State Secretariat for Economy (SECO) programme in PFM with IMF

-    Thematic working groups on Governance , Decentralisation, and Public finance management 

Fase 1 01.08.2019 - 31.12.2023   (Completed)