AFD and Mozambique

TANZANIE DRC

TANZANIA COMORES

MALAWI ANGOLA

ZAMBIA

QU

BOTSWANA

LESOTHO

MOZA

ZIMBABWE NAMIBIA

E

MB I

AFD and Mozambique

SWAZILAND

SOUTH AFRICA

165 projects

EUR 1.1 billion

EUR 350 million

financed

of commitments

in grants to the social sector

in 37 years

since 1981

since 1981

Present in the country since 1981, AFD is a long-term partner of Mozambique. For nearly 40 years, AFD has continuously supported the country in its efforts to improve basic infrastructure, preserve biodiversity, and ensure citizens’ access to basic services.

Our action in Mozambique 1

HARMONIZING PRESERVATION OF BIODIVERSITY AND SOCIO-ECONOMIC DEVELOPMENT Mozambique is home to a great diversity of ecosystems and an extremely rich fauna and flora. However, overexploitation and illegal exploitation of natural resources threaten this exceptional biodiversity, on which more than 80% Mozambicans rely for their livelihoods. The challenge is therefore to reconcile preservation of biodiversity with socioeconomic development of local communities.

Over the past 15 years, AFD has been suppor ting the development and rehabilitation of several protected areas such as the Limpopo National Park, the Gilé National Reserve and the Quirimbas National Park. Since 2017, AFD has been financing a project to combat elephant poaching, and has

2

AGENCE FRANÇAISE DE DÉVELOPPEMENT | MOZAMBIQUE

FOSTERING EQUITABLE ACCESS TO BASIC SERVICES AFD is accompanying Mozambique in its work to upgrade its infrastructure and improve access to basic services. Since 1987, approximately EUR 65 million have been granted to the Mozambican government’s Water Supply Investment and Assets Fund (FIPAG) to increase production capacity, extend the network and the number of connections, as well as reduce water losses.

In a country where only one in five people are connected to the electricity grid, AFD supports the public electricity company Electricidade de Moçambique (EDM) to increase access to electricity. AFD finances the entire value chain, from building the Ressano-Garcia thermal power station and securing electricity transmission in the south of the country, to connecting households and businesses to the grid in periurban areas.

Lastly, AFD is also facilitating the low-carbon transition by financing two energy generation projects: the rehabilitation of the Mavuzi and Chicamba hydropower plants and the construction of a 40MW solar power plant. Financing is accompanied by technical assistance to EDM to strengthen its institutional capacity to develop sustainable renewable energy projects.

Two low-carbon energy generation projects financed; EUR 200 million invested across the entire value chain of the energy sector; 35,000 households have access to drinking water and 150,000 households have access to electricity, Over 280,000 tons of CO2 per year avoided.

been supporting the BIOFUND trust fund, which aims to sustainably finance the country’s protected areas. Finally, AFD is supporting Mozambique to set up a compensation mechanism for damage to biodiversity caused by economic development projects.

9 out of 17 protected areas currently supported by AFD across the country; EUR 27.3 million invested in biodiversity conservation since 2004; 2,250 hectares of deforestation avoided in the Gile National Reserve between 2012 and 2017.

3

CREATING OPPORTUNITIES FOR ALL AND REDUCE SOCIAL INEQUALITIES AFD is committed to increasing access to education and strengthening vocational training. It funds the construction of a primary and secondary school of excellence, the Aga Khan Academy, which offers bursaries to students from disadvantaged backgrounds. AFD is also supporting EDM in upgrading its in-house vocational training system.

Another way in which AFD contributes to Mozambique’s economic development is by strengthening the value chain of strategic sectors. By offering a guarantee solution, it encourages banks to develop a sustainable credit offer for small and medium enterprises (SMEs). At the same time, AFD is helping strengthen governance in the cashew nut sector and develop its production and marketing capacities.

In the health sector, A FD is currently f inancing the construction of a general hospital in Beira and a programme to improve the skills of medical personnel in anaesthesia and intensive care.

Finally, AFD finances several projects implemented jointly by French and Mozambican non-governmental organizations (NGOs) in areas such as professional training, access to water and sanitation, home -based healthcare, and sustainable management of natural resources.· 75% of students attending Aga Khan Academy receive financial aid; 2,000 cashew nut producers have been trained in agro-ecological practices; 50% increase in health professionals specialized in anaesthesiology.

AGENCE FRANÇAISE DE DÉVELOPPEMENT | MOZAMBIQUE

Our key figures in Mozambique

165 Evolution of commitments since 1981

Projects financed since 1981

DISTRIBUTION OF COMMITMENTS 2016-2017

(in million EUROS)

BY SECTOR

BY FINANCIAL TOOL

27

22

62.5% 75 %

Infrastructure

12

19 %

Biodiversity

5

2014

2015

Social sector

6

2016

2017

6

37.5 %

%

30.5 %

Non sovereign loan

2018

Portfolio amount

Grant

C2D

PORTFOLIO DISTRIBUTION

BY SECTOR

BY FINANCIAL TOOL

78 %

275 million EUROS

81%

Infrastructure Biodiversity Social sector

3% 16 %

14 % Non sovereign loan

8% Sovereign loan

AGENCE FRANÇAISE DE DÉVELOPPEMENT (AFD) – MOZAMBIQUE Avenida 24 de Julho, n°1500, BP 2647 Maputo, Mozambique | Tel. +258 21 30 43 00 / 01 / 02 | Email: afdmaputo@afd.fr

Grant

TANZANIA

ZAMBIA

QU

BOTSWANA

E

MOZA

ZIMBABWE NAMIBIA

SUPPORTING CONSERVATION AND SOCIOECONOMIC DEVELOPMENT IN THE LIMPOPO NATIONAL PARK

COMORES

MALAWI ANGOLA

MB I

MOZAMBIQUE

TANZANIE DRC

LESOTHO

SWAZILAND

SOUTH AFRICA

Between 2007 and 2015, AFD has supported the implementation of the management and development plan of the Limpopo National Park, one of the largest in Mozambique, emblematic of the local and cross-border challenges of supporting a regional protected area in Africa.

BACKGROUND

following objectives:

The Limpopo National Park was established in 2001 by the Government of Mozambique on the territor y of a former hunting concession covering an area of 11,230 km2. Together with Kruger National Park in South Africa and Gonarezhou National Park in Zimbabwe, it forms the Great Limpopo Transboundary Park (GLTP).

1. Restore and preserve biodiversity in the Limpopo National Park by supporting implementation of the ‘tourism’, ‘biodiversity protection’, ‘ecological research and monitoring’, and ‘environmental management’ programmes; 2. Improve the livelihoods and living standards of people living in the Limpopo National Park’s Support Zone 5 by (i) supporting participatory planning and management of the Support Zone and (ii) developing road infrastructures; 3. Build the Limpopo National Park’s administrative capacities by covering its running costs for the first two years of the project, strengthening staff capacities and improving donor coordination.

More than 20,000 people live in the park, mostly people who fled Mozambique during the civil war between 1977 and 1992, and returned to settle in the park.

However, the area is marked by lack of infrastructure and economic opportunities and consequent high poverty rates among residents.

The Limpopo National Park Development Project, supported by the Peace Parks Foundation (PPF), is helping Mozambique respond to the challenges associated with the creation of this new national park.

DESCRIPTION B e t we e n 2 0 07 a n d 2 015 , A F D h as supported the implementation of the management and development plan of the Limpopo National Park. This project is emblematic of AFD’s new approach to development in the early 2000s, which aims to link economic development with biodiversity conservation.

AFD’s support aims to achieve the three

IMPACTS Local economic development (park and its periphery), provincial and national through the development of infrastructures (roads in particular), job creation (tourism), development of irrigated agriculture; Improvement of the living conditions of the inhabitants of the “support” zone (education, health, limitation of human / wildlife conflicts) and better participation of the population in their own development; Protection of biodiversity.

MOZAMBIQUE Country 01/04/2007 Project start date 12/12/2016 Project end date Forests and Biodiversity Sectors Gaza Province Location 8 Years Duration of funding Grant Financing tool EUR 11 000 000 Grant amount Government of Mozambique Beneficiaries Kreditanstalt für Wiederaufbau (KfW) Peace Parks Foundation The World Bank Co-financing organizations

ANGOLA

BOTSWANA ZAMBIA

NAMIBIA

COMORES

MALAWI

QU

Pretoria

E

MB I

Soweto SWAZILAND ZIMBABWE Johannesburg

NAMIBIA

REHABILITATION OF TWO HYDROELECTRIC PLANTS

TANZANIA ZIMBABWE

BOTSWANA

MOZA

MOZAMBIQUE

TANZANIE DRC

LESOTHO

LESOTHO

Durban

SWAZILAND

Cape Town

SOUTH AFRICA

By rehabilitating the Mavuzi and Chicamba hydropower plants, the project is helping to secure Mozambique’s electricity supply at a lower cost and with a lower carbon footprint.

BACKGROUND The Mozambican electricity context is characterized by high growth consumption, dependent on a few production sites. Peak electricity consumption in Mozambique is around 750 MW in 2013 (not counting the Mozal smelter). Consumption is growing rapidly (+ 11% / year) as a result of the proactive electrification policy but also of sustained economic growth driven by a few mega-projects to exploit the country’s mining resources (coal, gas in particular).

The national electricity company EDM draws its supplies mainly from the company, Hidroelectrica Cahora Bassa (HBC), that operates the Cahora Bassa dam (500 MW).

EDM itself produces a portion of the electricity (in the order of 100 MW), and the balance buys electricity from independent producers (Aggreko) and ESKOM at a high price. The latter share is increasing and weakens the financial health of EDM, which can not adjust its sales prices without ministerial agreement. The rehabilitation of the Mavuzi and Chicamba power plants will reduce this dependence on imports and obtain an electricity supply at the lowest cost.

DESCRIPTION

MOZAMBIQUE Country 22/10/2012 Project start date 31/12/2018 Project end date 50 Months Duration of funding Energy, Climate Sectors Chicamba and Mavuzi Location Sovereign loan Financing tools

The work consists of: The rehabilitation of the two Chicamba turbines (capacity after rehabilitation of 44 MW in total); The rehabilitation of the three main turbines of Mavuzi (42 MW in total after rehabilitation), as well as the two 5.5. MW turbines that will serve as a backup in the event of failure of one of the main turbines at Mavuzi and Chicamba; The upgrade of control systems the renovation of penstocks.

IMPACTS The project will better respond to peak demand and continued growth in energy demand across the country. It will thus allow a better security of supply and an increase in the production capacity. In peak periods, it will save on the purchase of electricity in the Southern African power grid at a very high cost. In times of low demand, the project will allow EDM to increase its electricity exports to the Southern Africa Power Pool. In case of unavailability of supply from Hidroelectrica Cahora Bassa (through the Cahora Bassa dam), it will secure the supply to the central region of the country.

EUR 50 000 000 Financing amount Electricidade de Moçambique (EDM) Beneficiaries Kreditanstalt für Wiederaufbau (KFW) SIDA Co-financing organizations

TANZANIA

ZAMBIA

QU

BOTSWANA

LESOTHO

E

MOZA

ZIMBABWE NAMIBIA

DEVELOPING EDUCATIONAL EXCELLENCE IN MOZAMBIQUE

COMORES

MALAWI ANGOLA

MB I

MOZAMBIQUE

TANZANIE DRC

SWAZILAND

SOUTH AFRICA

AFD is contributing to the development of educational excellence in Mozambique, with the aim of training the country’s future elites, irrespective of social background.

BACKGROUND The civil war that afflicted Mozambique from 1977 to 1992 left the national educational system in a state of ruin. Thanks to the mobilisation of the Mozambican government and its partners, the education sector recovered at the beginning of the 2000s. Primary education became free in 2004, and in 2011, 91% of children were attending primary school. However, the primary education completion rate remains poor at 31%.

The government’s Strategic Plan for Education for 2012-2016 prioritises good governance, social inclusion and improved quality of education. In terms of the last two priorities, private education does not compensate the shortfalls in public education.

Quality is very uneven and there is no policy subsidising access to education for disadvantaged people.

DESCRIPTION

MOZAMBIQUE Country 27/09/2016 Project start date 31/12/2026 Project end date Education Sectors MAPUTO Location

AFD is financing the construction of a school of excellence, the Aga Khan Academy, in the outskirts of the capital city Maputo. The Academy provides high-level primary and secondary education with the goal of training future highly qualified and socially responsible professionals to help Mozambique fulfil its social and economic development ambitions. The Academy actively enrolls highly gifted and talented students from disadvantaged backgrounds who are exempt from paying school fees.

20 YEARS Duration of funding

The Aga Khan Academy in Maputo is set on 90,000 square metres of land and had 81 students at the end of 2018 – an equal number of boys and girls – across kindergarten to grade 12. It plans to accommodate 750 primary and secondary students by 2026.

EUR 22 800 000 Grant amount

A portion of the land on which the development sits will be used to build 90 rental apartments, whose revenue will be used to ensure the Academy’s long term sustainability and to fund future bursaries to students from poorer backgrounds.

IMPACTS Provision of world-class primary and secondary educational excellence, including for children from disadvantaged backgrounds; Integration of French language and culture in the curriculum from an early age; Academy with strong governance, and a sustainable and highly viable social economic model; Support to the public education system through a teacher training centre.

Non -sovereign concessional loan Financing tool

Aga Khan Education Services (AKES) Beneficiaries

TANZANIA

ZAMBIA

QU

BOTSWANA

LESOTHO

E

MOZA

ZIMBABWE NAMIBIA

PROMOTING EQUITABLE DEVELOPMENT OF THE CASHEW NUT SECTOR

COMORES

MALAWI ANGOLA

MB I

MOZAMBIQUE

TANZANIE DRC

SWAZILAND

SOUTH AFRICA

The project aims to contribute to the strengthening of the cashew nut sector in order to allow a sustainable improvement of farmers’ incomes while preserving natural resources.

BACKGROUND The cashew nut sector plays an important ro l e i n M oz a m b i q u e ’s a g r i c u l tu r a l development strategy and food security.

The one million cashew nut farmers in Mozambique are mostly small producers living below the pover t y line in the northern regions of the country (Nampula, Zambezia, Cabo Delgado) where cashew nuts accounts for one-third of the annual income of farmers. On the processing side, there are a dozen companies that represent about 15,000 jobs.

This sector therefore represents an important potential for reducing poverty, especially for small producers, as well as creating jobs and adding value through the local processing of cashew nuts.

However, it is clear that throughout this sector, the dialogue is unbalanced or absent between some parties due to lack of knowledge about the sector itself, as well as reliable information available at crucial times.

DESCRIPTION The project will be structured around 2 main components: Capacity building of INCAJU – the public institution responsible for policy setting, definition of strategies and coordination of cashew industry – to ensure the management of

the sector at the national level, notably through the strengthening of market information systems to a wide audience in the three northern provinces of the country: Zambezia, Nampula and Cabo Delgado; Implementation of a pilot project for an environmentally, economically and socially sustainable production of cashew nuts in the Gilé and Pebane districts, around the Gilé National Reserve.

MOZAMBIQUE Country 06/06/2018 Project start date 30/06/2021 Project end date Hunger and Food Security Sectors

The project will be able to support the rise of INCAJU as moderator between actors in the cashew nut sector, so that the interests of all are taken into account, in full transparency and on recognized factual grounds.

Maputo and Zambezia Provinces Location

IMPACTS

Grant Financing tool

Strengthening the market information system available to all stakeholders; Role of INACAJU strengthened for a better management of the sector; Environmentally friendly production through the dissemination of new agro-ecological practices to the producers involved in the Zambezia project.

3 Years Duration of funding

EUR 2 000 000 Grant amount INCAJU Beneficiaries

AFD is an inclusive public financial institution and the main actor in France’s development policy. It makes commitments to projects that genuinely improve the everyday lives of people, in developing and emerging countries and in the French overseas territories.

AFD works in many sectors – energy, health, biodiversity, water, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world: a world in common. Its action is fully in line with the Sustainable Development Goals (SDGs).

Through its network of 85 agencies, AFD operates in 109 countries and is currently supporting over 3,500 development projects. In 2017, it earmarked EUR 10.4bn to finance these projects.

AGENCE FRANÇAISE DE DÉVELOPPEMENT

https://www.afd.fr @AFDOfficiel @AFD_en | @AFD_France

Avenida 24 de Julho n°1500 BP 2647 Maputo, Mozambique Tel: +258 21 30 43 00 / 01 / 02 Email: afdmaputo@afd.fr

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