## _cr11132

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---

### INTRODUCTION
- PARP 2011-2014 is the medium-term strategy of the Government of Mozambique to implement the Five-Year Government Program (2010-2014), focused on combating poverty and promoting a culture of work to achieve inclusive economic growth and reduce poverty and vulnerability.
- PARP continues PARPA II (2006-2009, extended to 2010); PARPA II principal goal: reduce incidence of food poverty from 54.7 percent to 42 percent by 2014.
- PARP is part of the National Planning System (SNP) and aligned with Agenda 2025 and the Millennium Development Goals (MDG).
- Medium-Term Fiscal Framework 2010-2014 (CFMP) will reflect budgetary allocation for PARP objectives, pursued annually through the Economic and Social Plan and the State Budget.
- Poverty is defined as multidimensional: “individuals, families and communities lack the capacity or the opportunity to gain access to minimum living conditions according to the basic standards of society."
- General government action under PARP focuses on:
  - (i) increase output and productivity in agriculture and fisheries;
  - (ii) promote employment;
  - (iii) foster human and social development;
  - (iv) governance; and
  - (v) macroeconomic affairs and fiscal management.
- PARP strategic matrix includes output and outcome indicators to be monitored annually via the Balance Sheet for the Economic and Social Plan and over the medium term via the National Poverty and Well-Being Assessment and other surveys; matrix to be finalized separately by the end of June 2011.
- PARP is dynamic and flexible; indicators and targets will be revised with participation by civil society and international cooperation partners.

### I. THE SOCIOECONOMIC SITUATION IN MOZAMBIQUE — Key findings
- Macroeconomic performance and human development:
  - Annual growth averaged 7.6 percent of GDP over 2005-2009.
  - Income per capita rose on average by 5 percent a year over 2005-2009.
- Education and literacy:
  - Access to schooling rose from 30.8 percent in 2002-3 to 37.3 percent in 2008-9.
  - Percentage of illiterate women fell from 54 percent in 2004 to 40.8 percent in 2008.
- Health access and outcomes:
  - Access to a health unit within 45 minutes’ travel by foot rose from 55 percent to 65 percent between 2002-3 and 2008-9.
  - Infant/child mortality: from 245.3 deaths per 1000 live births in 1997 to 138 in 2008.
  - Infant mortality: from 143.7 deaths per 1000 live births in 1997 to 93 in 2008.
  - Maternal mortality: from 692 to 500 deaths per 100,000 live births between 1997 and 2007.
- Poverty and inequality (selected entries from incidence and Gini):
  - National poverty incidence: 69.4 (1996-1997), 54.1 (2002-03), 54.7 (2008-09); Gini: 0.40, 0.42, 0.41 respectively.
  - Urban: 62.0, 51.5, 49.6; Gini: 0.47, 0.48, 0.48.
  - Rural: 71.3, 55.3, 56.9; Gini: 0.37, 0.37, 0.37.
  - Maputo City: 47.8, 53.6, 36.2; Gini: 0.52, 0.52, 0.51.
  - Example provinces: Niassa: 70.6, 52.1, 31.9; Gini: 0.36, 0.36, 0.43. Nampula: 68.9, 52.6, 54.7; Gini: 0.36, 0.36, 0.42. Zambézia: 68.1, 44.6, 70.5; Gini: 0.35, 0.35, 0.37.
- Nutrition and living conditions:
  - 46.4 percent of children under 60 months suffering moderate stunting.
  - 18.7 percent are underweight.
  - 6.6 percent suffer moderate wasting.
  - Incidence of severe stunting is 23 percent.
  - Rural malnutrition incidence: 50 percent; Urban: 36 percent.
  - Durable goods ownership rose by 8.3 percentage points in urban zones versus 4.7 percentage points in rural areas (2002-3 to 2008-9).
  - Proportion using electricity, a generator or solar energy for lighting rose from 6.9 percent to 13.3 percent.
  - Safe drinking water use rose from 36 percent in 2004 to 43 percent in 2008; Urban 70 percent versus Rural 30 percent (2008).
- Constraints behind stagnation of food poverty (Third Poverty Assessment):
  - Low growth in agricultural productivity, vulnerability to climatic shocks and seasonal income variation, and worsening terms of trade driven by international food and fuel price increases.
- Labor market and disease burdens:
  - Informal economic activity predominates in cities; formal nonagricultural private sector employment rose by only 1.1 percent between 2002 and 2006.
  - Around 80 percent of the workforce has not completed the first level of primary school; only 13 percent complete it; in the private sector about 31 percent complete at least the second level of primary school.
  - Estimated 300,000 young people entering the labor market each year.
  - HIV/AIDS, tuberculosis and malaria reduce labor productivity and increase poverty in high-mortality zones.

### II. INCLUSIVE ECONOMIC GROWTH — Targets and projections
- Primary PARP goal: reduce incidence of poverty from 54.7 percent in 2009 to 42 percent in 2014 with focus on pro-poor growth.
- Pro-poor growth strategy elements:
  - Investment in agriculture to boost family-sector productivity and diversify the economy.
  - Create jobs and linkages between foreign investment and the local economy.
  - Support MSMEs.
  - Foster human and social development to reduce food insecurity and chronic child malnutrition and strengthen defenses against endemic diseases.
- National economic growth forecasts and sectoral drivers:
  - Growth in 2010: 6.5 percent.
  - Projected average annual growth between 2011 and 2014: around 7.7 percent.
  - Expected sectoral growth (annual average): Agriculture 10.8 percent; Extractive industries 10.6 percent; Electricity and water 10.2 percent; Construction 12.4 percent; Transportation and communications 10 percent.
- Macroeconomic projections (Table 2 excerpts):
  - Nominal GDP (USD millions): 2010 9912; 2011 11,607; 2012 12,688; 2013 13,574; 2014 14,403.
  - Nominal GDP (MZM millions): 2010 323,585; 2011 379,837; 2012 437,724; 2013 498,899; 2014 568,104.
  - Growth rate (%): 2010 6.6; 2011 7.2; 2012 7.5; 2013 7.9; 2014 7.8.
  - Average annual inflation (%): 2010 12.7; 2011 9.5; 2012 7.2; 2013 5.6; 2014 5.6.
- Drivers and projects:
  - Agricultural growth contingent on expanding technical assistance and input availability for family farming.
  - Extractive growth influenced by startup of coal production at Benga and Moatize.
  - Electricity and water growth linked to rural electrification, PRONASAR, and PSAA.
  - Transport and communications buoyancy tied to the Strategy for Integrated Development of the Transportation System.
- Inflation risks:
  - Government aims for single-digit average inflation over 2011-2014 through coordinated fiscal, monetary, and exchange rate policies and productivity increases.
  - Risk that inflation will exceed forecasts due to exogenous factors, notably international oil market developments and rising international food prices (noted to around USD 90 per barrel, WEO January 2011).

### III. STRATEGIC ORIENTATION FOR POVERTY REDUCTION
- Three essential general objectives:
  - Increase agricultural and fisheries production and productivity (main income source for around 80 percent of the population).
  - Promote decent employment and develop MSMEs.
  - Promote human and social development and social protection for the most vulnerable.
- Preconditions:
  - Stable and competitive macroeconomic framework.
  - Efficient and effective fiscal management.
  - Transparent, honest and fair governance.
- Emphasis on coordination, coherence and consistency among policies and sector strategies.

### IV. CHALLENGES — Summary by category
- Core challenge: transform production structure and economic productivity linkages to focus on economic development and people’s well-being.
- Key transformation elements: rural development embracing family farming; strengthening domestic market and national integration.
- Specific challenge categories:
  - a) Agriculture and fisheries: low productivity on small/mid-sized farms; only 8.8 percent of family farmers use irrigation (TIA 2008); lack of marketing opportunities; need for post-harvest handling, financial services, insurance, community resource management, de-mining, improved extension, aquaculture promotion, and sex-disaggregated data systems.
  - b) Employment and private sector: business climate improvements; land access and zoning; reduce trade costs; infrastructure needs (electricity, telecoms, transport); education/skills gaps; estimated 300,000 entrants to labor market annually.
  - c) Human and social development: regional and gender disparities; service quality and affordability; expand social protection and community networks; pressures from urbanization; continued fight against HIV/AIDS, tuberculosis and malaria.
  - d) Governance: improve business climate, legal framework enforcement, decentralization, service delivery (BAUs), anticorruption, justice system reforms, and capacity building.
  - e) Macroeconomic policy and fiscal management: maintain macro stability, expand financial services, manage external reserves prudently, grow government revenues by at least 0.5 percent of GDP annually, and mainstream gender perspective in planning and budgeting.

### V. PARP GENERAL OBJECTIVES AND PRIORITIES — Selected priorities and actions
- General objective 1: boost production and productivity in agriculture and fisheries
  - Sectoral contribution: over last five years more than 25 percent of GDP and accounting for between 7 and 11 percentage points of economic growth.
  - Family sector: basic food crops nearly 90 percent of total; traditional fishery responsible for 85 percent of catch for domestic consumption.
  - Main priorities:
    - Priority 1: Improve and expand access to factors of production (research, inputs, extension with gender equity, mechanization, land titles, de-mining).
    - Priority 2: Facilitate market access (infrastructure, fuel supply stations in 31 districts, Mozambique Food Products Exchange, post-harvest management, rural finance, market information).
    - Priority 3: Improve sustainable management of natural resources (regional planning, REDD+, wildfire control, reforestation, disaster-risk committees).
- General objective 2: promote employment
  - Priorities:
    - Priority 1: Stimulate creation of employment (MSME statute, simplified licensing, special tax regime, business incubators, land zoning, Entrepreneurial Guidance Centers, labor-intensive public works PERPU).
    - Priority 2: Improve employability (vocational training quality and access, "Start Your Own Business" programs, National System for Certification of Vocational Skills).
    - Priority 3: Facilitate supply-demand linkages (public employment centers, employment and training observatory, labor market information systems).
- General objective 3: human and social development
  - Priorities:
    - Priority 1: Availability and quality of social services (health equity, maternal/neonatal care, nutrition surveillance; education: universal seven years primary, teacher training, early childhood strategy).
    - Priority 2: Basic social security (expand Direct Social Action Programs, harmonize eligibility, annual subsidy review, SSB information system disaggregated by sex, National Program for Productive Social Action).
    - Priority 3: Social infrastructure (water and sanitation, urban mobility, solar energy for health and education, housing, upgrading informal settlements, local labor involvement).
- Support pillars: good governance
  - Priorities: improve BAU service coverage and quality; combat corruption; decentralization and local governance; consolidate democratic rule of law; expand access to justice; strengthen magistrates and anticorruption mechanisms.
- Support pillar: macroeconomic measures
  - Priorities:
    - Monetary and exchange policy: consolidate macro stability, promote “Meticalization”, promote banking penetration and external competitiveness.
    - Public financial management: increase revenue collection sustainably (grow revenues by at least 0.5 percent of GDP annually), decentralize tax payment, implement e-Tributação and e-SISTAFE, mobilize concessional funding, coherent debt strategy, improve procurement transparency, implement Extractive Industries Transparency Initiative.

### VI. THE PARP PROGRAM BUDGET — Funding envelope and allocation
- National economy forecast: average growth rate of 7.8 percent.
- Domestic resources expected to grow averaging 20 percent over CFMP 2012-2014.
- Table 3 summary (MT Millions):
  - Total Resources (OE Proposed Rev. Projections): 132,403 (2011 OE), 141,757 (2011 Rev.), 153,806 (2012), 168,357 (2013), 186,892 (2014).
  - Domestic resources: 74,338 (2011 OE), 81,776 (2011 Rev.), 93,311 (2012), 107,851 (2013), 127,120 (2014).
    - State revenues: 73,275 (2011 OE), 79,165 (2011 Rev.), 90,726 (2012), 106,987 (2013), 125,742 (2014).
    - Domestic credit: 1,064 (2011 OE), 2,611 (2011 Rev.), 2,585 (2012), 864 (2013), 1,378 (2014).
  - External resources: 58,065 (2011 OE), 59,981 (2011 Rev.), 60,495 (2012), 60,506 (2013), 59,772 (2014).
    - Grants: 35,769 (2011 OE), 35,285 (2011 Rev.), 33,696 (2012), 34,061 (2013), 35,303 (2014).
    - Loans: 22,296 (2011 OE), 24,697 (2011 Rev.), 26,799 (2012), 26,445 (2013), 24,469 (2014).
- Summary statements:
  - Total funding envelope for 2011-2014 will rise from 132 to 187 billion Meticais.
  - Government revenues expected to increase from 73.3 to 125.7 billion Meticais over the same period.
- Strategic allocation of resources:
  - PARP uses program planning and budgeting methodology (POP).
  - 88 government programs selected for central and provincial implementation.
  - CFMP 2012-2014 projection: total investment increase from 60 to 86 billion Meticais assuming constant external assistance.
  - Portion of total investment spending going to PARP general objectives expected to rise from 57 percent (2011) to 60 percent (2014).
  - Including district investment outlays, resources geared to PARP priorities rise from 76 percent to 82 percent; other programs decline from 24 percent to between 16-18 percent.
- Selected investment spending figures (2011 examples, Millions of Meticais):
  - Boosting agricultural and fishery productivity total 2011: 18,547.3 (13,569.3 external + 4,978.0 internal).
  - Promoting employment total 2011: 2,002.6 (1,132.6 external + 870.0 internal).
  - Human and social development 2011 total: 13,694.3 (12,501.9 external + 1,192.4 internal).
  - Central Objectives of PARP 2011 total: 34,244.2 (27,203.8 external + 7,040.4 internal).
  - Support pillars 2011 totals: Macroeconomic and fiscal management 6,453.7; Governance 1,428.3.
  - Investment in the districts 2011 internal: 1,943.5 (external 0.0) total 1,943.5.
  - Total of PARP resources 2011 total: 45,522.5 (33,633.0 external + 11,889.6 internal); % of total investment: 76%.
  - Total Investment 2011 total: 60,043.9 (41,204.3 external + 18,839.5 internal).

### VII. MONITORING AND EVALUATION — Framework and institutions
- Monitoring and evaluation are essential to guide PARP implementation, achieve targets, and comply with indicators.
- Monitoring framework and principles:
  - Alignment with existing mechanisms for monitoring government programs.
  - Distinguish outcome indicators (scope of objectives) and output indicators (fulfillment of activities).
  - Combine quantitative and qualitative monitoring; adopt dynamic and participatory approaches with institutionalized forums at central, provincial and district levels.
- Instruments for monitoring and evaluation (National Planning System):
  - (i) Annual monitoring of activities and targets via the Balance Sheet of the Economic and Social Plan (BdPES) and the Budget Execution Report.
  - (ii) Participatory monitoring and evaluation involving government, civil society and international cooperation partners using Development Observatories, the annual review process, and planning meetings based on the strategic matrix.
- Evaluation:
  - Impact evaluation via the Fourth National Poverty Assessment in 2015.
  - Supplementary surveys/studies to be used: Demographic Health Survey (IDS); Labor Force Survey; Core Welfare Indicators Questionnaire (QUIBB/CWIQ); Agricultural Survey Project (TIA); Multiple Indicator Cluster Survey (MICS); Assessments of Public-Sector Reform; other social and anthropological studies.
- Institutional responsibilities:
  - Monitoring and evaluation depend on the Statistical Information System led by the lead body of the National Statistics System and on information sharing among principal development stakeholders.
  - Ministry of Planning and Development will conduct monitoring and evaluation in coordination with the National Statistics Institute (INE).

*Source: PARP 2011-2014 — INTRODUCTION and related sections (document content provided).*

### INTRODUCTION ...........................................................................................................

### _cr11132 - INTRODUCTION ...........................................................................................................

### INTRODUCTION
- The Poverty Reduction Action Plan (PARP) 2011-2014 is the medium-term strategy of the Government of Mozambique to implement the Five-Year Government Program (2010-2014), focused on combating poverty and promoting a culture of work to achieve inclusive economic growth and reduce poverty and vulnerability.
- PARP 2011-2014 continues PARPA II (2006-2009, extended to 2010), whose principal goal was to reduce the incidence of food poverty from 54.7 percent to 42 percent by 2014.
- PARP is part of the National Planning System (SNP) and aligned with Agenda 2025 and the Millennium Development Goals (MDG).
- The Medium-Term Fiscal Framework 2010-2014 (CFMP) will reflect budgetary allocation for PARP objectives, pursued annually through the Economic and Social Plan and the State Budget.
- Poverty is described as multidimensional: “individuals, families and communities lack the capacity or the opportunity to gain access to minimum living conditions according to the basic standards of society."
- General objectives of government action under PARP:
  - (i) increase output and productivity in agriculture and fisheries;
  - (ii) promote employment;
  - (iii) foster human and social development;
  - joint focus on (iv) governance and (v) macroeconomic affairs and fiscal management.
- The PARP strategic matrix includes output and outcome indicators to be monitored annually via the Balance Sheet for the Economic and Social Plan and over the medium term via the National Poverty and Well-Being Assessment and other surveys. The matrix will be finalized separately by the end of June 2011.
- The PARP is dynamic and flexible; indicators and targets will be revised as necessary with participation by civil society and international cooperation partners. The PARP preparation process included consultation with civil society and international cooperation partners.

### I. THE SOCIOECONOMIC SITUATION IN MOZAMBIQUE
- Macroeconomic performance and human development:
  - Annual growth averaged 7.6 percent of GDP over 2005-2009.
  - Income per capita rose on average by 5 percent a year over 2005-2009.
- Education and literacy:
  - Proportion of population with access to schooling rose from 30.8 percent in 2002-3 to 37.3 percent in 2008-9.
  - Percentage of illiterate women fell from 54 percent in 2004 to 40.8 percent in 2008.
- Health access and outcomes:
  - Population with access to a health unit within 45 minutes’ travel by foot rose from 55 percent to 65 percent between 2002-3 and 2008-9.
  - Infant/child mortality: from 245.3 deaths per 1000 live births in 1997 to 138 in 2008.
  - Infant mortality: from 143.7 deaths per 1000 live births in 1997 to 93 in 2008.
  - Maternal mortality: from 692 to 500 deaths per 100,000 live births between 1997 and 2007.
- Poverty and inequality:
  - Food poverty (national poverty index) slightly under 55 percent of the population (54.7 percent in 2008-09).
  - Table 1 (selected entries) — Incidence of Poverty and Inequality, by Province, Urban-Rural and National: 1996-1997, 2002-03, 2008-09 (poverty incidence; Gini)
    - National: 69.4, 54.1, 54.7; 0.40, 0.42, 0.41
    - Urban: 62.0, 51.5, 49.6; 0.47, 0.48, 0.48
    - Rural: 71.3, 55.3, 56.9; 0.37, 0.37, 0.37
    - Maputo City: 47.8, 53.6, 36.2; 0.52, 0.52, 0.51
    - Example provincial entries:
      - Niassa: 70.6, 52.1, 31.9; 0.36, 0.36, 0.43
      - Nampula: 68.9, 52.6, 54.7; 0.36, 0.36, 0.42
      - Zambézia: 68.1, 44.6, 70.5; 0.35, 0.35, 0.37
- Nutrition and living conditions:
  - 46.4 percent of children under 60 months suffering moderate stunting (chronic malnutrition).
  - 18.7 percent are underweight.
  - 6.6 percent suffer moderate wasting (acute malnutrition).
  - Incidence of severe stunting is 23 percent.
  - Rural malnutrition incidence: 50 percent; Urban: 36 percent.
  - Durable goods ownership rose by 8.3 percentage points in urban zones versus 4.7 percentage points in rural areas (2002-3 to 2008-9).
  - Proportion of families with durable roofing material rose by around 4.4 percentage points (2002-3 to 2008-9).
  - Proportion using electricity, a generator or solar energy for lighting rose from 6.9 percent to 13.3 percent.
  - Overall rate of safe drinking water use rose from 36 percent in 2004 to 43 percent in 2008.
  - Safe drinking water: Urban 70 percent versus Rural 30 percent (2008).
- Constraints behind stagnation of food poverty (Third Poverty Assessment findings):
  - Low rate of growth in agricultural productivity, particularly food crops.
  - Vulnerability of agriculture to climatic shocks and seasonal income variation.
  - Worsening terms of trade due to sharp increases in international food and fuel prices affecting domestic cost of living.
- Labor market and disease burdens:
  - Informal economic activity predominates in cities; access to formal employment is very restricted, particularly for women.
  - Formal employment in the nonagricultural private sector rose by only 1.1 percent between 2002 and 2006.
  - HIV/AIDS, tuberculosis and malaria have higher incidence among poor families and reduce labor productivity.
  - Poverty rates have risen in the central zone where HIV/AIDS mortality rates are highest.
  - Much local public spending in education and health is financed directly by central ministries with limited district/municipal involvement; better coordination and decentralization could help.

### II. INCLUSIVE ECONOMIC GROWTH FOR REDUCING POVERTY
- Primary PARP goal: reduce incidence of poverty from 54.7 percent in 2009 to 42 percent in 2014 with a focus on "pro-poor" growth.
- Pro-poor growth strategy elements:
  - Investment in agriculture to boost family-sector productivity and diversify the economy.
  - Create jobs and linkages between foreign investment and the local economy.
  - Support micro, small and medium-sized enterprises (MSMEs).
  - Foster human and social development to reduce food insecurity and chronic child malnutrition and strengthen defenses against endemic diseases (HIV/AIDS, tuberculosis, malaria).
- National economic growth forecasts and sectoral drivers:
  - Growth in 2010: 6.5 percent.
  - Projected average annual growth between 2011 and 2014: around 7.7 percent.
  - Expected sectoral growth (annual average):
    - Agriculture (includes livestock and forestry): 10.8 percent.
    - Extractive industries: 10.6 percent.
    - Electricity and water: 10.2 percent.
    - Construction: 12.4 percent.
    - Transportation and communications: 10 percent.
  - Table 2: GDP, Inflation and Balance of Trade (2010-2014)
    - Nominal GDP (USD millions): 2010 9912; 2011 11,607; 2012 12,688; 2013 13,574; 2014 14,403
    - Nominal GDP (MZM millions): 2010 323,585; 2011 379,837; 2012 437,724; 2013 498,899; 2014 568,104
    - Growth rate (%): 2010 6.6; 2011 7.2; 2012 7.5; 2013 7.9; 2014 7.8
    - Average annual inflation (%): 2010 12.7; 2011 9.5; 2012 7.2; 2013 5.6; 2014 5.6
  - Drivers and projects cited:
    - Agricultural growth contingent on expanding technical assistance services and availability of inputs for family farming.
    - Extractive industry growth influenced by startup of coal production at Benga and Moatize operations.
    - Growth in electricity and water related to rural electrification project and startup of PRONASAR and Small Water Supply Systems (PSAA).
    - Transport and communications buoyancy tied to the Strategy for Integrated Development of the Transportation System to link interior areas of South Africa, Zimbabwe and Malawi to the sea.
- Inflation risks and macro policy:
  - Government aims for single-digit average inflation over 2011-2014 through coordinated fiscal, monetary, and exchange rate policies and productivity-increasing measures.
  - Risk that inflation will exceed forecasts due to exogenous factors, notably international oil market developments and rising international food prices (note: to around USD 90 per barrel, WEO January 2011).

### III. STRATEGIC ORIENTATION FOR POVERTY REDUCTION
- Three essential general objectives:
  - Increase agricultural and fisheries production and productivity to improve food supply and as a main income source for around 80 percent of the population.
  - Promote decent employment and development of MSMEs.
  - Promote human and social development to ensure an educated and healthy labor force and provide social protection for the most vulnerable.
- These objectives are interlinked and require:
  - A stable and competitive macroeconomic framework.
  - Efficient and effective fiscal management.
  - Transparent, honest and fair governance.
- Emphasis on greater coordination, coherence and consistency among policies and sector strategies to act as a cohesive whole.

### IV. CHALLENGES
- Core challenge: transform the structure of production and economic productivity and their linkages to focus on economic development and people’s well-being.
- Key transformation elements include:
  - Rural development that embraces family farming to increase productivity.
  - Strengthening the domestic market and facilitating integration into the national economy.
- Specific categories of challenges (listed in the table of contents and addressed in subsequent sections of the source):
  - a) Challenges facing agriculture and fisheries
  - b) Challenges for promoting employment and the role of the private sector
  - c) Challenges for human and social development
  - d) Challenges of governance
  - e) Challenges for macroeconomic policy and fiscal management

*Source: PARP 2011-2014 — INTRODUCTION section (document content provided).*

### 1. Boost farm

### 1. Boost farm and fisheries output and productivity

### Objectives
- Boost farm and fisheries output and productivity

### Key directions for policy and action
- Increase production in agriculture and fisheries to raise overall output
- Improve productivity across farming and fisheries activities through targeted interventions
- Support measures that enable sustainable growth in food production sectors

*Source: _cr11132 - 1. Boost farm*

### 2. Promote

### 2. Promote employment

### a) Challenges facing agriculture and fisheries
- Agriculture and fisheries production, particularly at the family level, are crucial for food and nutritional security; output and productivity remain very low, especially on small and mid-sized farms.
- Priority challenges include expanding access to factors of production, particularly for women; emphasis on adequate technologies, quality inputs, and enhanced capacity for surveillance and control of plant and animal pests and diseases; and improving and making better use of water for agricultural purposes.
  - Note: only 8.8 percent of family farmers use irrigation of any kind (TIA 2008).
- Principal disincentive to intensifying production is lack of marketing opportunities for farm and fishery products.
  - Required improvements: post-harvest and post-catch handling (storage, conservation, processing), access to market and pricing information, involvement of the banking sector to improve financial, credit and insurance services for producers in rural areas.
  - Insurance reduces risk, makes low-cost credit more available, and boosts producers' incentive to invest.
- Sustainable use of natural resources requires greater community involvement; challenges include strengthening fishery and land administration, reducing human–wildlife conflicts, controlling wildfires, over-harvesting of marine resources, and illegal cutting and excessive consumption of timber.
- Additional challenges: de-mining of areas for productive use; proper soil management; reducing vulnerability to natural disasters; increasing coverage and quality of agricultural and fishery extension services; promoting artisanal fishing and aquaculture.
- Institutional capacity challenge: improve information management system (statistics, monitoring and evaluation) disaggregated by sex to provide reliable data and analysis for strategic planning.

### b) Challenges for promoting employment and the role of the private sector
- Strategic documents: Strategy for Improving the Business Climate 2008 - 2012; Strategy for Development of Small and Medium-Sized Enterprises (SMEs); Employment and Vocational Training Strategy.
- Business climate challenges:
  - Facilitate payment of taxes by MSMEs.
  - Land access and zoning for agricultural and industrial activities; registration and transfer of land titles.
  - Facilitate international trade procedures, enhance predictability, reduce import/export costs.
- Economic infrastructure needs to reduce operating costs: electricity, telecommunications, transportation; public investment must align with economic potential including better use of natural resources.
- Labor supply and education statistics:
  - Around 80 percent of the workforce has not completed the first level of primary school, and only 13 percent is doing so.
  - In the private sector, about 31 percent of the workforce is completing at least the second level of primary school.
  - It is estimated that around 300,000 young people are entering the labor market each year; insufficient formal jobs lead to absorption into the informal sector.

### c) Challenges for human and social development
- Progress in private possession of durable goods and access to health and education over the last six years, but regional and gender disparities persist; social infrastructure programs have fallen behind.
- Quality of services must match expansion and be affordable, measured by rates of use.
- Need to expand beneficiaries of social protection programs and community protection networks; update subsidy amounts.
- Urbanization pressures: faster population growth, especially in cities, worsens urban infrastructure and services; need for housing, serviced land, and support for self-construction.
- Rural reintegration required for people affected by natural disasters.
- Health challenges: continued fight against HIV/AIDS, tuberculosis and malaria due to their negative effects on labor productivity and investment.

### d) Challenges of governance
- Key dependencies for boosting production/productivity and promoting employment:
  - (i) improving the business climate; (ii) quality and enforcement of legal framework for economic activities; (iii) decentralization and deconcentration of functions and resources to local level; (iv) democratic rule of law ensuring equal opportunities.
- Service delivery challenges:
  - Expand BAUs ("one-stop service windows") and services offered; use ICTs; reduce waiting times; simplify procedures; improve qualifications of government officials (42 percent have basic-level qualifications, and only 8.1 percent have higher-level qualifications (2009 Statistical Yearbook)).
- Anticorruption challenges: enforce government procurement legislation; implement anticorruption plans at sector and district levels; strengthen internal/external control mechanisms; implement inspection and audit recommendations.
- Decentralization challenges: prepare Local State Organs (OLEs) and municipalities (autarquias locais) technically and materially; speed transfer of responsibilities; implement local internal control and monitoring; boost municipal strategic planning and financial management; improve instruments for managing the District Development Fund (FDD).
- Justice system challenges:
  - Revise legal costs, criminal and procedural legislation; speed up procedures; create conditions for better performance by magistrates.
  - Expand infrastructure for tribunals, IPAJ, courthouses and prisons.
  - Clarify relationship between formal justice and other dispute settlement forms (context: review of criminal legislation underway).
- Legislative and institutional instruments referenced as part of reform and protections (listed in source): Law on Trafficking in Persons, Judicial Organization Law, Law on Promotion and Protection of the Rights of the Child, Law Creating the National Human Rights Commission, Law on Domestic Violence against Women, Code of the Register of Legal Entities, Labor Law, Revision of the Code of Civil Procedure, Amendment to the Commercial Code, Amendment to the Code of Civil Procedure, Consumer Protection Law, Regulation on food impact assessment, Law 12-2009, Law on people living with HIV/AIDS.
- Central Office for Combating Corruption (GCCC) role: strengthen procedural processes, prevention/combating measures, increase prosecutions and sentences.

### e) Challenges for macroeconomic policy and fiscal management
- Role: support agriculture/fisheries productivity and employment via (i) macroeconomic stability; (ii) improving business climate; (iii) effective fiscal management to ensure adequate public investment.
- Monetary sector challenges:
  - Monitor exchange regulations to improve external position.
  - Encourage expansion of financial services nationwide; boost financial savings to promote investment/growth.
  - Guarantee efficient, modern national payments system.
  - Manage external reserves using sound practices, diversify portfolio, explore new markets with appreciable rates of return and lower-risk products.
- Government revenue challenge: keep revenues growing at an annual rate of at least 0.5 percent of GDP.
  - Greater contribution expected from large-scale undertakings in natural resource exploitation and from public-private partnerships and concessions.
  - Need to line up grants and concessional loans to finance budget deficit while providing basic infrastructure.
- Challenge to mainstream gender perspective into planning, budgeting and management of government property, including budget execution.

### V. GENERAL OBJECTIVES OF THE PARP
- PARP general objectives and supporting pillars presented by priorities and strategic objectives with priority actions to be implemented by 2014.

#### a) General objective 1: boost production and productivity in agriculture and fisheries
- Sector contribution: over the last five years more than 25 percent of GDP and accounting for between 7 and 11 percentage points of the economic growth rate.
- Family sector: basic food crops (millet, cassava, rice and beans) account for nearly 90 percent of total; traditional fishery responsible for 85 percent of catch for domestic consumption.
- Main priorities: (1) improve and expand access to factors of production; (2) facilitate market access; (3) improve sustainable management of natural resources.

- Priority 1. Improve and expand access to factors of production
  - Strengthen research services; develop improved technologies and promote adoption; enhance public/private extension services with gender equity; create research/innovation/technology centers and transfer centers.
  - Increase production and access to inputs: encourage public/private investment for local input production; ensure purchase of vaccines/medications/drugs for sanitary and phytosanitary prevention and control; test varieties; encourage fishing inputs distribution; encourage construction/stocking of land-based aquaculture tanks.
  - Promote producers' associations, cooperatives and "clusters".
  - Use public/private investment to expand infrastructure in productive areas: water resource management systems, expand electric energy and alternative sources, continue de-mining.
  - Expand access to mechanized and animal traction; implement animal traction program; promote mechanization service suppliers; implement program for low-cost deep-sea fishing vessels.
  - Guarantee access to natural resources: speed land title process for local communities and economic agents, with attention to women.

- Priority 2. Facilitate market access
  - Improve/expand infrastructure and transportation: maintain access roads in high potential areas; continue building fuel supply stations in 31 districts not yet covered; create the Mozambique Food Products Exchange.
  - Improve post-harvest/post-catch management: promote local storage facilities and artisanal fishing/storage infrastructure; revive the Mozambique Cereals Institute (ICM).
  - Promote agro-processing and market linkages; revive rural commerce; promote export of nontraditional products.
  - Facilitate rural financial services with better scope for women: promote special credit lines and guarantee funds.
  - Improve market information systems: consolidate/disseminate market and price information; use Community Multimedia Centers (CMCs); sponsor agricultural fairs.

- Priority 3. Improve sustainable management of natural resources
  - Improve regional planning and land management: implement regional planning law (mapping, agricultural zoning, land registries); prepare maps of disaster-risk areas.
  - Adopt disaster risk reduction and climate adaptation measures: promote REDD+; control wildfires; reforestation; conservation agriculture; establish local risk management committees; operationalize natural resource management committees.

#### b) General objective 2: Promote employment
- Objective: promote employment via multisector actions to improve business climate, attract investment, stimulate micro-enterprises/MSMEs, enhance workforce employability, and support vulnerable groups (women, youth, persons with disabilities, persons infected/affected by HIV/AIDS).
- Priorities: (1) encourage creation of employment; (2) improve people's employability; (3) facilitate linkages between employment supply and demand.

- Priority 1. Stimulate creation of employment
  - Approve/implement general statute of MSMEs; new MSME classification.
  - Generalize simplified licensing, extend "negative licensing regime" for micro-enterprises.
  - Special tax regime for micro-enterprises: quarterly installment payments, simple filing, use of NUIT.
  - Create business incubators and industrial parks prioritizing MSMEs.
  - Establish Knowledge Transfer Centers for agro-processing and firm creation.
  - Proceed with land zoning and facilitate award/transfer of land titles.
  - Expand Entrepreneurial Guidance Centers provincially; create comprehensive MSME financing/support service focused on women.
  - Promote labor-intensive industries: make labor law more flexible; issue regulations to Law 5/2000 of February 5 on employment of persons with HIV/AIDS.
  - Promote MSME–big firm linkages, identify specialized financial market sites.
  - Encourage labor-intensive public works (PERPU) for temporary low-cost jobs; target youth, women and entrepreneurs.

- Priority 2. Improve people's employability
  - Enhance quality and access to vocational training (public and private), focus on agriculture, agro-processing, industrial maintenance; distribute means of work to the neediest.
  - Develop "Start Your Own Business" and "Manage Your Business Better" programs; establish traineeship programs; implement Human Resource Development Plan for Science and Technology (PDRHCT); develop/implement National Human Resources Training and Development Plan.
  - Align vocational training with emerging industry needs; review/harmonize programs with priority sectors: hotels and tourism, industrial maintenance, agriculture, processing, mining, management and administration.
  - Recognize prior informal learning; generalize traditional apprenticeship and mobile training units; create a National System for Certification of Vocational Skills.

- Priority 3. Facilitate linkages between employment supply and demand
  - Reduce information asymmetries: expand public employment centers in capacity to provide information, vocational guidance, micro-enterprise support, access to credit, and internships.
  - Improve public–private dialogue: establish an employment and training observatory to discuss labor market outlook and present results from employment support programs (FDD, PERPU, Pro-Jovem).
  - Improve labor market and private sector information systems: establish monitoring systems for private sector and labor market performance to produce timely/reliable statistics.

#### c) General objective 3: Human and social development
- Human and social development supports agriculture/fisheries productivity and employment via public services in education, health, food and nutritional security, water and sanitation, housing, social security and employment protection.
- Priorities: (1) availability and quality of social services; (2) basic social security; (3) social infrastructure.

- Priority 1. Availability and quality of social services
  - Health: promote equity in access with focus on women, children and vulnerable groups; increase access for pregnant women to institutionalized childcare; institute nutritional surveillance; introduce multi-sector interventions to reduce chronic malnutrition; train health professionals in maternal/neonatal care; disseminate good practices in food consumption and hygiene.
  - Human resources: strengthen HR management, planning and administrative capacities; ensure adequate training and allocation of health professionals; provide non-financial incentives; introduce mechanisms for user and civil society participation in accountability.
  - Education: universal access to seven years of primary education of sufficient quality; speed classroom construction and improve quality; reform teacher training with emphasis on in-service training; prioritize school management and calendar/timetable implementation; prepare integrated early childhood development strategy; retain children in school with particular attention to girls.
  - Literacy/life skills: provide literacy training for 1 million youth and adults each year through various programs; adapt/harmonize literacy and post-literacy programs; encourage community libraries; expand non-formal short-term vocational training and Community Centers for Skills Development.
  - Post-primary education: expand secondary education via distance instruction and closer secondary schools; pursue curriculum reform with vocational orientation; consolidate vocational/technical curriculum reform and institutional reforms in higher education.

- Priority 2. Basic Social Security
  - Expand coverage and impact of Direct Social Action Programs to a growing proportion of family units, based on social vulnerability mapping and costing, ensuring financial sustainability.
  - Define harmonized eligibility criteria for Social Security beneficiaries to reduce gender inequalities and consider HIV/AIDS and child malnutrition impacts.
  - Establish systematic annual review of subsidy amounts to maintain purchasing power; promote financing of social and economic integration projects.
  - Enhance operational efficiency and transparency: operationalize Coordination Council for Basic Social Security (SSB) Subsystem; establish an SSB information system/database disaggregated by sex; establish operational mechanisms to expand geographic coverage and efficiency including alternative payment solutions.
  - Ensure access to supplementary assistance services: guarantee civil registry access for all children and SSB beneficiaries; implement social programs for psychosocial support and prepare a social charter; establish integrated services for preventing/responding to violence against women and children; ensure orphans and street children benefit from supplementary protection programs.
  - Facilitate access to education and health systems through Acção Social Escolar and Acção Social Saude: continue free distribution of school books with acquisition/distribution reforms; increase school funds through Direct Support for Schools; study and consider expanding school nutritional support to all primary schools; introduce social transfer for assisted childbirth in public health units; strengthen link between health units and community via training/employing traditional midwives and community health workers; reinforce nutritional education in school curriculum.
  - Design/implement National Program for Productive Social Action targeting chronic food insecurity and vulnerability to climatic shocks, price fluctuations and seasonal variability: implement social assistance in exchange for community work at district/municipal level; promote mechanisms for vulnerable people's access to income-generating activities (focus on women); create sustainable financing mechanisms to expand initiative across districts/municipalities, considering geographic and gender disparities.

- Priority 3. Social infrastructure
  - Water and sanitation: build/rehabilitate rural water sources; ensure sustainability/use of water and sanitation infrastructure; establish household connections and additional public water points in cities; promote sewer connections, septic tanks and improved latrines in urban/periurban zones; promote family latrines in rural areas.
  - Urban mobility: liberalize transportation fares while protecting workers, students and vulnerable groups; create conditions for purchasing more buses, boats and collective transit equipment adapted to local conditions.
  - Energy for health and education: install solar energy systems in rural areas without REN, prioritizing schools and health centers in all provinces; electrify all district headquarters not yet connected to REN and administrative posts.
  - Housing and land: proceed with local development planning and zoning; disseminate cheaper housing construction technologies; promote self-construction and local construction materials industries; encourage relocation from disaster-prone areas.
  - Promote construction of new housing via tax incentives and public–private partnerships; promote financial mechanisms for housing programs.
  - Upgrade informal settlements: install infrastructure and basic services; promote regularization and demarcation of lots.
  - Involve local labor in sector projects: support training for local private sector, NGOs and CBOs to participate in water/sanitation programs (harmonize with employment objective).

#### d) Support pillars: good governance
- Government priorities: improve accessibility and quality of public services nationwide; combat corruption; pursue decentralization and local governance; consolidate democratic rule of law.
- Priority 1. Improve accessibility and quality of public services (BAUs)
  - Implement African Public Service Charter; introduce ICTs in service delivery; simplify services; train government officials; expand user satisfaction surveys; computerize BAUs and connect them to state institutions.
  - Broaden BAU coverage and services per Decree 14/2007 of May 30; expand registration networks.

- Priority 2. Combat corruption in public institutions
  - Enhance transparency and accountability: increase competitive procurement; implement recommendations from Second National Survey on Governance and Corruption; implement the Extractive Industries Transparency Initiative; publish disciplinary proceedings data broken down by sectors.
  - Strengthen internal and external control mechanisms: improve internal control bodies; audit a growing proportion of the State budget (OE) at all territorial levels; publish and implement external audit recommendations.

- Priority 3. Decentralization and local governance
  - Guarantee institutional reform and capacity building for local administration: continue OLE reform; endow OLE with human resources and working means via National Program for Decentralized Planning and Finance; strengthen OLE capacity for planning/financial management; implement district monitoring system; construct/rehabilitate administrative and economic infrastructure; increase budget transfers to OLE and municipalities.
  - Consolidate municipalities and urban development: continue transferring functions/powers to municipalities; train municipalities in administrative management, revenue collection, service delivery, territorial planning and land management; implement Strategic Plan for Urban Poverty Reduction in 11 municipalities.
  - Strengthen citizen participation: promote participatory budgeting; integrate crosscutting issues into district plans; strengthen citizen participation in formulation, implementation, monitoring and assessment of development plans.

- Priority 4. Consolidate the democratic rule of law
  - Guarantee access to justice for all, with emphasis on the economically disadvantaged: broaden judicial network (provincial/district courthouses); expand IPAJ network; consolidate mechanisms for access to justice; proceed with legislative reforms; make police more effective.
  - Prevent and combat crime, focusing on corruption and embezzlement: pursue interagency coordination in justice administration; review anticorruption legislation package; prepare/implement guidance for good governance and combating corruption for 2011-2014; create mechanisms to improve magistrates' performance.

#### e) Support pillar: macroeconomic measures
- Macroeconomic stability is essential for inclusive growth and poverty reduction amid external shocks (rising international food/fuel prices).
- To transform the economy and generate employment: ensure low inflation and stable exchange rate while preserving external competitiveness; increase government revenues via improved direct taxes; public investment must grow faster than public consumption.
- Priorities: monetary and exchange policy; public financial management.

- Priority 1. Monetary and exchange policy
  - Consolidate macroeconomic stability: maintain low inflation to stimulate private investment, improve business climate, allocate resources efficiently, improve income distribution, and maintain consumers' purchasing power.
  - “Meticalization” of the economy: promote growing use of the Metical in domestic transactions.
  - Promote external competitiveness through exchange policy.
  - Continue efforts to promote expansion of financial services ("Banking penetration").

- Priority 2. Public financial management
  - Increase revenue collection sustainably and fairly: decentralize tax payment system via more tax offices and mobile posts; accept domestic tax payment at border customs stations; involve local authorities/communities in tax collection; implement "single electronic window" for customs clearance; facilitate bank payments; strengthen Large Taxpayers division; adopt e-Tributação; promote tax education and extend tax base to informal sector.
  - Earmark public resources to poverty-reduction priority areas: improve planning/budgeting and integrate program budgeting methodology; establish National Planning System.
  - Promote sustainable investment financing: mobilize concessional funding for priority investments; prepare coherent debt strategy consistent with balanced sustainable growth; implement new project selection system and Integrated Investment Plan.
  - Improve comprehensiveness, transparency, effectiveness and efficiency in public fund management: generalize direct/timely payment via e-SISTAFE; prepare conceptual model for Properties Management System; improve procurement transparency and integrity; strengthen internal control; increase external audit efficiency; prepare General Government Account; follow up audit recommendations; improve procurement monitoring and recourse mechanisms.
  - Improve management of natural resources: implement Extractive Industries Transparency Initiative; improve published information on megaprojects; develop system of control over large taxpayers and megaprojects; increase benefits to communities; enforce legislation for local community revenue sharing.

### VI. THE PARP PROGRAM BUDGET

#### a) The funding envelope
- National economy forecast: average growth rate of 7.8 percent.
- Domestic resources expected to grow significantly (averaging 20 percent over CFMP 2012-2014).
- Table 3 summary (MT Millions):
  - Total Resources (OE Proposed Rev. Projections): 132,403 (2011 OE), 141,757 (2011 Rev.), 153,806 (2012), 168,357 (2013), 186,892 (2014).
  - Domestic resources: 74,338 (2011 OE), 81,776 (2011 Rev.), 93,311 (2012), 107,851 (2013), 127,120 (2014).
    - State revenues: 73,275 (2011 OE), 79,165 (2011 Rev.), 90,726 (2012), 106,987 (2013), 125,742 (2014).
    - Domestic credit: 1,064 (2011 OE), 2,611 (2011 Rev.), 2,585 (2012), 864 (2013), 1,378 (2014).
  - External resources: 58,065 (2011 OE), 59,981 (2011 Rev.), 60,495 (2012), 60,506 (2013), 59,772 (2014).
    - Grants: 35,769 (2011 OE), 35,285 (2011 Rev.), 33,696 (2012), 34,061 (2013), 35,303 (2014).
    - Loans: 22,296 (2011 OE), 24,697 (2011 Rev.), 26,799 (2012), 26,445 (2013), 24,469 (2014).
- Summary statements:
  - Total funding envelope for 2011-2014 will rise from 132 to 187 billion Meticais.
  - Government revenues expected to increase from 73.3 to 125.7 billion Meticais over the same period.

#### b) Strategic allocation of resources
- PARP uses program planning and budgeting methodology (POP) by objectives rather than sectoral allocation.
- 88 government programs selected for central and provincial implementation; remaining programs classified as "others" (less important to PARP objectives).
- CFMP 2012-2014 projection: total investment increase from 60 to 86 billion Meticais, assuming constant external assistance; financing for "other" programs expected to be reduced.
- Investment allocation trends (summary from Table 4):
  - Portion of total investment spending going to programs linked to PARP general objectives expected to increase from 57 percent (2011) to 60 percent (2014).
  - Funding for support pillars (macroeconomic/fiscal management and governance) rises from 13 percent to 14 percent.
  - Including district investment outlays, resources geared to PARP priorities rise from 76 percent to 82 percent over the period; other programs decline from 24 percent to between 16-18 percent.

- Selected figures from Table 4 (Investment Spending, Millions of Meticais - nominal prices):
  - Boosting agricultural and fishery productivity total (2011-2014 totals by year shown in table): example 2011 total 18,547.3 (13,569.3 external + 4,978.0 internal).
  - Promoting employment total examples: 2011 total 2,002.6 (1,132.6 external + 870.0 internal).
  - Human and social development 2011 total 13,694.3 (12,501.9 external + 1,192.4 internal).
  - Central Objectives of PARP 2011 total 34,244.2 (27,203.8 external + 7,040.4 internal).
  - Support pillars (macroeconomic and fiscal management + governance) 2011 totals: 6,453.7 and 1,428.3 respectively.
  - Investment in the districts 2011 internal 1,943.5 (external 0.0) total 1,943.5.
  - Total of PARP resources 2011 total 45,522.5 (33,633.0 external + 11,889.6 internal); % of total investment 76% (2011).
  - Total Investment 2011 total 60,043.9 (41,204.3 external + 18,839.5 internal).

### VII. MONITORING AND EVALUATION OF THE PARP
- Monitoring and evaluation are indispensable for guiding effective and efficient PARP implementation, achieving targets, and complying with indicators associated with priorities, strategic objectives, and priority actions.
- The Monitoring and Evaluation Strategy of the PARP 2011-2014 contains five fundamental principles (principles listed in source beyond provided excerpt).

*Source: _cr11132 - 2. Promote*

### 1. Alignment with the existing mechanisms for monitoring government programs.

### 1. Alignment with the existing mechanisms for monitoring government programs.

### Monitoring framework and principles
- Alignment with existing mechanisms for monitoring government programs.
- Differentiation between:
  - outcome indicators, which assess the scope of specific objectives; and
  - output indicators, which measure the degree of fulfillment of activities performed.
- Combination of quantitative and qualitative monitoring, with resulting implications for procedures for collecting information and institutional partnerships.
- Dynamic approach of the PARP, using the PARP monitoring process as a mechanism for ongoing review of targets and programs, maintaining key strategic objectives.
- Participatory approach of the monitoring and evaluation process, particularly as it relates to the use of institutionalized forums for participation at the central, provincial and district levels to ensure involvement of other development stakeholders.

### Instruments for monitoring and evaluation
- Instruments and mechanisms are contained in the National Planning System, and include:
  - (i) Annual monitoring of activities and targets associated with the output indicators, through the Balance Sheet of the Economic and Social Plan (BdPES) and the Budget Execution Report.
  - (ii) Participatory monitoring and evaluation mechanisms, involving government, civil society and international cooperation partners, and using among other forums the Development Observatories, the annual review process, and the planning meeting process based on the strategic matrix.

### Evaluation of the PARP 2011-2014
- The impact evaluation, reflecting the performance of sector programs, will be conducted in 2015, through the Fourth National Poverty Assessment, which will represent a quantitative evaluation of the poverty situation in Mozambique and its associated trends.
- As the IOF does not assess all areas of PARP activity (in particular, the governance area), other surveys and studies will be rolled into the PARP evaluation, namely:
  - Demographic Health Survey (IDS)
  - Labor Force Survey
  - Core Welfare Indicators Questionnaire (QUIBB/CWIQ)
  - Agricultural Survey Project (TIA)
  - Multiple Indicator Cluster Survey (MICS)
  - Assessments of Public-Sector Reform
  - other social and anthropological studies.

### Institutional responsibilities and dependencies
- Successful monitoring and evaluation of the PARP 2011-2014 depends on:
  - sound functioning of the Statistical Information System headed by the lead body of the National Statistics System; and
  - sharing of information among the principal development stakeholders.
- Monitoring and evaluation activities will be conducted by the Ministry of Planning and Development, in coordination with the National Statistics Institute (INE).

### Annex 1 — Government Program to Achieve the Objectives of the PARP 2011-2014: selected objective → designation/goal
- Increase output and productivity in agriculture and fisheries → Rural finance and micro-finance: Promote productivity, competitiveness, and the accumulation of rural wealth.
- Management of natural resources for local development → Promote productive and sustainable management of natural resources and the environment.
- Empowerment of local communities → Good governance and planning for the market.
- Drought management → Reduce vulnerability to hunger caused by drought in regions prone to cyclical water shortages, where precipitation is less than 500 mm per year.
- Management of floods, cyclones and earthquakes → Avoid loss of human lives and destruction of property caused by natural disasters.
- Agricultural production and productivity → Guarantee increased output and food security in the country.
- Research, support, development and infrastructure services → Boost productivity of agricultural activities and throughout the value chain.
- Production for market → Encourage greater agricultural output geared to the market.
- Agricultural infrastructure and capacity building → Promote construction and rehabilitation of agricultural infrastructure.
- Land use and exploitation → Facilitate access to and exercise of rights to land use and exploitation.
- Forestry → Define and implement a policy for sustainable exploitation of forest resources.
- Food and nutritional security → Stability of food consumption at all times.
- Land-use planning → Promote land use planning nationwide with the emphasis on cities, villages and coastal areas and ensure that environmental priorities are duly integrated into development programs.
- Climate change → Promote environmental quality and policies and strategies for mitigating and adapting to climate change.
- Environmental education, communication and dissemination → Promote environmental education and the raise community awareness of the importance of preserving the environment.
- Environmental management → Adopt and implement strategies and measures to combat erosion, deforestation, wildfires and pollution, and disseminate good environmental management practices.
- Human resource development at all levels in science and technology → Outreach campaign to foster an attitude and culture of innovation, entrepreneurship and technological development throughout Mozambican society as an instrument for combating poverty and promoting development.
- Promotion of grassroots research and innovation → Promote mechanisms, platforms, infrastructure and facilities for disseminating and adopting technologies in local communities, in small and medium-sized enterprises.
- Promotion of the Science, Technology and Innovation System → Strengthen and promote the Science, Technology and Innovation System in order to yield new or improved products, services and processes that will maximize the value of the country's resources.
- Renewable energy and new energy sources → Create the capacity to use new and renewable energy sources in the country, encourage the development of technologies for producing and installing solar, wind and water-powered energy systems, and prioritize their installation and use in health centers and schools.
- Access to electrical energy → Expand access to energy at the lowest possible cost, by broadening the geographic coverage of energy supply infrastructure and services.
- Marketing of food products → Promote marketing on domestic and external markets to achieve food security and improve the balance of trade.
- De-mining → Accelerate and complete the destruction of antipersonnel mines and unexploded devices and implement programs of victim assistance, as well as civic education.
- Road and bridge maintenance → Preserve the assets inherent in the country's road network.
- Road rehabilitation and improvement → Improve travel conditions over the country's road network.
- Increase fisheries production for food security → Enhance the contribution of the fisheries sector to the population's food and nutritional security.
- Improve living conditions for fishing communities → Improve living conditions for small-scale fishing and aquaculture communities.
- Develop commercial fishing and aquaculture → Enhance the contribution of industrial fisheries and aquaculture to achieving national economic and social development objectives.
- Enhance the contribution of fisheries to the balance of payments → Increase the net contribution of the fisheries sector to the country's balance of payments.
- Development of transportation systems → Develop safe intermodal or combined transportation systems that are sufficiently competitive, attractive and sustainable to facilitate investment.
- Technical and vocational education → Consolidate the reform underway and expand the formal and informal system at the various levels, with a special focus on learning opportunities for young people not in school.
- Strengthen the financial system → Strengthen the financial system, including greater access to credit and financial services at competitive prices.
- Promote industrial development with a focus on SMEs → Promote industrial development with a special focus on micro, small and medium-sized industries that can develop the country's productive resources and capacities in an appropriate and sustainable manner.
- Promotion of employment → Improve the business climate for SMEs: Improve the business climate.
- Promote national entrepreneurship → To have a strong, dynamic, competitive entrepreneurial class committed to boosting production and productivity and promoting social well-being.
- Promote economic growth and social development → Promote the growth of production and accelerated, balanced economic and social development focused on the district.
- Boost productivity → Stimulate the growth of productivity through the transfer of technologies, research and innovation.
- Promote and attract investment → Promote Mozambique as a preferred and safe destination for direct investment, national and foreign, guaranteeing stable growth in the levels of annual investment, and its balanced expansion across sectors at the national level, bearing in mind the need to diversify the sources of foreign direct investment.
- Employment and vocational training → Improve the quantity and quality of vocational training, in order to make citizens more employable and to promote work and employment opportunities in rural areas, with special attention to young people, women, persons with disabilities and those affected by HIV/AIDS.
- Production of statistics → Produce statistics on the labor market.
- Environmental quality management → Develop facilities for managing urban solid wastes and environmental cleanup.
- Primary education → Expand quality education to ensure that, by 2015, all children have the opportunity to complete seven years of basic education of standardized quality.
- Literacy and adult education → Expand access for youth and adults to literacy and life skills programs, through consolidation and harmonization of various programs.
- Human and social development / Secondary education → Expand secondary vocational education on a sustainable basis, through the formal system and distance education, with due regard to quality.
- Promotion of gender equity → Promote gender equality by enhancing the status of women and boosting their participation in the country's political, economic and social life.
- Attention to target groups unable to work or in situations of vulnerability → Provide assistance for the social integration of vulnerable groups, in particular women, children, the elderly and persons with disabilities.
- Access to serviced land and support for housing self-construction → Guarantee access to and secure tenure of serviced land.
- Construction of new housing → Guarantee access to decent housing.
- Improvement of informal settlements → Ensure the provision of infrastructure and basic services in informal settlements.
- Provision of and access to drinking water in rural areas and villages → Increase the coverage of water supply in rural areas and villages.
- Urban water supply → Increase the coverage of water supply in urban areas and villages.
- Rural sanitation → Increase the coverage of sanitation services in rural areas.
- Urban sanitation → Increase the coverage of sanitation services in urban areas.
- Public health, with special focus on women and children and medical assistance → Promote equity in access to health care, with priority to women and children and other vulnerable groups.
- Public health, with focus on reducing the impact of major epidemics and malnutrition → Reduce the impact of major epidemics such as malaria, tuberculosis and HIV/AIDS, intestinal parasites, diarrhea and other pandemics, and help reduce chronic malnutrition and protein-calorie and micronutrient malnutrition.
- Human resource development → Improve human resource management, humanizing services with emphasis on quality and on satisfying users’ needs.
- Prevention and mitigation of HIV/AIDS → Help reduce the prevalence of HIV/AIDS.
- Development of the Social Security system → Consolidate the strategy for developing the compulsory social security system, and to guarantee its financial sustainability.
- Good governance / Decentralization and empowerment of local communities → Pursue the decentralization process with a view to empowering local communities.
- Deconcentration, reform and capacity building for local organs of state → Implement the Institutional Reform for Local Administration of the State.
- Local economic development → Promote institutional development and infrastructure.
- Promotion of information and communication technologies (ICT) → Take action to make ICT a strategic tool for all Mozambicans in the exercise of democracy and citizenship, good governance and entrepreneurship.
- Improving the delivery of services to the public → Consolidate results-based government devoted to the citizens, guaranteeing the quality of services provided and ensuring that citizens participate in monitoring the quality of services provided to them.
- Transparency and integrity → Encourage administrative and financial transparency, as well as integrity in public administration systems, raising the level of individual responsibility among government officials and agents in terms of providing quality services to the citizens.
- Strengthening and consolidation of document management in the public administration and in government archives → Ensure preservation of the institutional memory and citizen access to information on public administration.
- Strengthening the capacity of local organs of government → Strengthen the capacity of local organs, consolidate decentralization and deconcentration, ensure that they have the capacity to carry out their powers and responsibilities, and to meet the growing needs of local communities.
- Effectiveness of the justice system → Reinforce the rule of law and prevent practices that violate the law.
- Access to justice → Guarantee access to justice, by consolidating and expanding legal and judicial assistance services for economically disadvantaged citizens.
- Reform of the correctional system → Undertake further reforms to the prison system as a means of ensuring the decent treatment of prisoners and their social reintegration.
- Preventing and combating crime → Pursue measures to prevent and combat crime, with particular emphasis on corruption and embezzlement of state funds.
- Maintaining public order, security and combating crime → Guarantee the security of persons and property, maintain public peace and tranquility, and wage an effective campaign against organized crime and crime in general.
- Promoting labor legality → Prevent and resolve labor disputes, promote and supervise labor legality, with a view to improving working conditions.
- Macroeconomic and fiscal management / Reforms in the management of the public finances in the context of SISTAFE → Improve the efficiency and effectiveness of the management of the public finances over the medium term, in order to promote economic growth and social development.
- Management and improvement of the planning system → Improve the quality of the planning process in the context of fiscal reforms.
- National Program of Decentralized Planning and Finances (PFD) → Consolidate the functioning of PFD by ensuring that the local levels of government have the institutional capacity for participatory and transparent planning and management of resources allocated to local social and economic development.
- Improvement in the quality and dissemination of official statistics → Improve the quality and the dissemination of official statistical data.

*Source: _cr11132 - 1. Alignment with the existing mechanisms for monitoring government programs.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11132.pdf_