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News

Electricity Law Revision Underway

SPEED+ is assisting the Ministry of Mineral Resources and Energy (MIREME) to respond to an important need to revise the Electricity Law and its regulations.  Lack of access to reliable power is a key binding constraint to broad-based growth in Mozambique. While the Government of Mozambique has undertaken important initiatives to encourage the development of projects to increase capacity and broaden access to power, the sector is still governed by Law 21/97, of 1 October (Electricity Law) and its regulations, which define the legal framework for the organization and the authorization of activities including generation, transmission, distribution and sales of electricity within Mozambique, as well as electricity imports and exports.

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Mozambique National AGOA Utilization Strategy: 2018- 2025

The African Growth and Opportunity Act is a U.S. trade act that provides duty-free import to goods produced in qualifying Sub-Saharan African (SSA) countries. AGOA came into force in 2000 and was most recently exten­ded to 2025 through the AGOA Extension & Enhancement Act (AEEA). Mozambi­que has been eligible for AGOA since 2000. One of the additions to AGOA through the AEEA is language in the legislation that states countries should produce “AGOA Utilization Strategies” to take advantage of the benefits. Accordingly, this AGOA Utilization Strategy is intended to identify strategic sectors and goods for exports to the U.S. under AGOA by Mozambique, to provide guidance on incre­asing the awareness and expertise of AGOA among Mozambique’s relevant public and private stakeholders and to elaborate a set of strategic actions that, if implemented, could help Mozambique to better utilize the AGOA.

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Co-Management Models Can Help Protect Mozambique's Biodiversity Assets

Partnerships between government, non-governmental organizations (NGOs) and the private sector offer the possibility of bringing necessary finance and management resources to protect Mozambique's biodiversity assets, which in turn will help transform those assets to economic gain through increased tourism.  SPEED+, together with Biofund, undertook a study to analyze various co-management models and make recommendations to Government on important aspects to include when finalizing co-managemnet agreements.  The Delegated Model, whereby the Government "delegates" management to NGOs or the private sector under long-term agreements, offers the greatest opportunity for maximizing advancement of Mozambique's biodiversity assets.

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Raw cashew nut (RCN) prices to farmers can increase by 49%

Cashew producers, typically smallholder farmers, can receive a 49% price increase on sale of raw cashew nuts if the export tax and peak season ban of exports on cashews is removed.  These cashew producers bear the cost burden of Mozambique's export tax, and this contributes to low RCN quality. By being forced to sell their RCN to processors/exporters at below market prices, rural farmers directly subsidize the domestic processing industry and have lost on average of USD 5 million in revenue per year over the last decade. Eliminating the export tax and peak-season export ban would result in a 49% increase in the price of RCN, directly benefiting incomes of small holder farmers.

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Modelos de Co-gestão das Áreas de Conservação: Perspetiva Regional

As áreas de conservação tem sido mundialmente reconhecidas como o meio mais eficaz de conservar a biodiversidade e os bens culturais associados. No entanto, alcançar uma conservação eficaz e desenvolvimento sustentável rural é um desafio, especialmente devido à crescente pressão populacional, caça ilegal e uma variedade de outras ameaças. Além disso, as Autoridades de Gestão das Áreas de Conservação encontram-se regularmente na difícil situação de ter vastas áreas para gerir com grave escassez de financiamento e pessoal. Nessa perspetiva, Moçambique tem estabelecido ao longo dos anos, diferentes iniciativas de gestão colaborativa com entidades privadas e a comunidade local, como forma de compartilhar responsabilidades de gestão, por forma a garantir uma maior eficiência na conservação da biodiversidade.

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Private Water Supply Systems Poised for Growth in Mozambique

The Regulation for Licensing of Private Water Providers in the Supply of Potable Water (Decree 51/2015) was approved on December 31, 2015, creating the opportunity for greatly expanded and well-regulated, safe and efficient access to water throughout the country.  With the support of the USAID SPEED+ Project, the licensing process is poised to take off nationwide.  Three seminars designed to increase understanding and promote participation under the Regulation were held in Maputo, Pemba and Beira in October and November 2017.  The seminars were attended by municipal councilors and technicians, and representatives from District Planning and Infrastructure Services, the National Water Supply and Sanitation Division (DNAAS), the Water Regulation Council, the Regional Water Administrations and the Association of Private Water Providers (AFORAMO).

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The rapid depreciation of the Metical, What’s happening?

The Mozambican currency, the Metical, lost 50% of its value from 30Mt / 1USD in January to 45Mt /1USD as of October 1st. Normally, when the metical depreciates to much, The Government of Mozambique intervenes.

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Fontes de financiamento para pequenas e médias empresas agrícolas

Durante o Fórum Económico Mundial realizado, durante os dias 2 a 4 de Junho  em Cape Town, a expressão “O dinheiro segue o dinheiro”, foi enfatizado. Para entender este conceito é necessário  precebermos as razões pelas quais muitos agricultores não consegem ter acesso ao financiamento.

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Financing the Missing Middle - Comments from the World Economic Forum

During the World Economic Forum held in Cape Town– one specific term was repeatedly mentioned – “Money follows money”. To truly understanding this concept is to understand why many farmers struggle to find working capital and growth funding. Commercial banks and traditional funding sources are often unwilling to take on the risk of lending to them.  If the extraordinary high interest rates alone where not enough, the lack of collateral, credit history, proof of cash flows amongst others, are fatal. What emerges is a situation where the economy in general, is composed of mostly very large or very small firms. This market failure creates a  missed opportunity for economic growth.  Therefore, it is paramount to find mechanisms to bridge the gap between micro finance and commercial lending.

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