Decentralisation for inclusive development


Mozambique implements the decentralization reform as agreed in the Maputo Peace Agreement brokered by Switzerland in 2018. Considering political power sharing highly relevant for the country’s stability, the programme supports the effective implementation of the decentralisation’s policies and reforms. The interventions aim to improve the quality of basic services delivered by local governments in Niassa and Nampula provinces, and to enhance accountability, transparency, inclusion and equity in the local decision-making processes through civic participation. 

Country/region Topic Period Budget
Mozambique
Governance
nothemedefined
Decentralisation
Domestic revenue mobilisation
Public finance management
Public sector policy
Democratic participation and civil society
01.01.2024 - 31.12.2025
CHF  9’930’000
Background

The decentralisation 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.

However, the latest reforms linked to the revised constitution, part of the 2019 Switzerland-brokered Maputo peace agreement, have not been fully implemented. Despite optimistic expectations, their implementation experienced many political, economic, bureaucratic and democratic setbacks.

In addition, due to COVID and the hidden debt crisis, the poverty has increased and affects 63% of the population (48% in 2015), and the Northern Provinces are the most affected.

As integral part of the peace agreements, the support for decentralization and political power sharing remains highly relevant for mid- to long term stability in Mozambique. Without the implementation of the decentralization reforms, Mozambique runs the risk of increased political instability.

After many years of Swiss support to Mozambique’s decentralization and state building process the Swiss brokered Maputo Peace Agreement reinforced Switzerland’s unique position to support the implementation of the decentralization reform. 

Objectives Contribute to the improvement of the wellbeing of northern Mozambique’s most vulnerable population by fostering inclusive, participatory, accountable socio-economic development, sustainable urbanization, social cohesion and peace. 
Target groups

Citizens and the subnational governments (3 districts, 14 municipalities, 2 provinces) in Nampula and Niassa provinces (total population of 7.5 mio inhabitants).

Ministry of Economy and Finance

Ministry of state affairs and public administration

Medium-term outcomes
  1. Municipalities, districts and provinces are able to deliver efficient, accountable and well-coordinated basic services according to the needs of the most vulnerable people in their territories
  2. Citizens and civic groups are able to influence local decision-making processes towards more accountable and gender sensitive management of public resources and better inclusion of the needs the most vulnerable population groups
  3. Formulation and effective implementation of decentralization policies enable subnational governments to increase their revenues and to act as economic engines for socioeconomic development and sustainable urbanization
Results

Expected results:  

  • Improved financial governance in selected municipalities
  • Gender-sensitive & local adaptation mainstreamed in decentralized planning and budgeting
  • Decentralized governance improved by testing decentralization reforms and putting socio-economic projects into practice
  • 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)
  • Enable environment for improved communication for the achievement of the SDGs at the provincial, district and municipality level
  • Dialogue spaces between local governments at provincial level promoted
  • Dialogue between local and national level promoted 


Results from previous phases:  

  • Policy makers, public servants at all levels are familiar with the legal content of the decentralization reform, and they are able to implement it
  • 12 projects identified through participatory planning, including in the health education and water sector, of which 3 have been completed. The completed and planned projects provided access to 80.000 persons, 53% thereof women
  • In 2022 a total of six Social Accountability Monitoring committees were established and supported; with a total of 161 members (77 women, 84 men). Out of 161 members 73 (45%) are youth (under 35 years) - 35 young women and 38 young men
  • Financial resources are transferred via national budget system down to the district level which ensures financial tracking and local accountability
  • Increasing revenue collection, in almost all municipalities covered
  • Improved expenditure management and quality and timeliness in the production of annual municipal accounts


Directorate/federal office responsible SDC
Project partners Contract partner
Private sector
Foreign state institution
United Nations Organization (UNO)
  • Foreign private sector South/East
  • United Nations Capital Developoment Fund
  • United Nations Development Programme
  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)


Coordination with other projects and actors
  • Government at the national, provincial and district level
  • Provincial programs of the World Bank (WB), Ireland and Sweden
  • Key actors in the sector: WB, International Monetary Fund (IMF), UK Aid, Irish Aid, USAID, BMZ
  • Swiss State Secretariat for Economy (SECO) programme in PFM with IMF 
Budget Current phase Swiss budget CHF    9’930’000 Swiss disbursement to date CHF    4’933’076 Total project since first phase Swiss budget CHF   11’993’000 Budget inclusive project partner CHF   32’357’000
Project phases Phase 2 01.01.2024 - 31.12.2025   (Current phase) Phase 1 01.08.2019 - 31.12.2023   (Active)