USAID SPEED’s framework for agriculture policy reform is based on Feed the Future (FTF) priorities and guidance, and targets high-impact reforms. USAID SPEED staff will work with counterparts to identify sound, non-distorting policy reforms and regulations which are needed to mobilize private investment, create jobs, and enhance the competitiveness of Mozambique’s agribusiness and agri-trade. As necessary, USAID SPEED will identify current or proposed policies that negatively (or would negatively) affect the agribusiness environment and raise these concerns in appropriate forum for discussion and resolution.
USAID SPEED will assist the GRM to establish business, trade, and investment policies which promote private sector-led broad-based economic growth. As requested by government counterparts, we will help to coordinate reforms across GRM ministries and strong private sector advocates in order to provide essential feedback loops on how citizens and companies are affected by proposed laws and regulations.
Although the business-enabling environment has improved in recent years, cumbersome regulations and procedures still impose heavy costs on business. These include burdensome and opaque approval process, licenses, and special levies that impede market entry and raise the costs of doing business. Mozambique remains one of the world’s most difficult places to do business and is not keeping pace with other countries in implementing business environment reforms, which resulted in Mozambique dropping in rank from 134 to 137 (out of 190 countries) in the World Bank’s 2017 Doing Business Report.
Power is a basic service that drives economic activity, growth and productivity. Lack of access to reliable power is a binding constraint to broad-based growth in Mozambique. The Government of Mozambique (GRM) has liberalized parts of the power sector allowing private sector investors to participate in generation and transmission of electricity. Overarching power sector support will be a need for sustained public-private-civil cooperation in establishing policy and reforms which structurally transform these sectors and change behavior.
SPEED+ will prioritize water sector activities based on established frameworks, including USAID’s Water and Development Strategy (2013–2018), Mozambique’s National Strategy for Water and Urban Sanitation 2011–2025, and Mozambique’s commitment to Sustainable Development Goal 6, universal and equitable access to safe and affordable drinking water by 2030. SPEED+ will provide support to National Directorate of Water and Sanitation (DNAAS) and the Association of Private Water Providers (AFORAMO) to improve the legal and regulatory environment and promote private sector investment in the water sector.
Mozambique has a unique geography with rich biodiversity, making certain landscapes ideal for sustainable nature and wildlife-based tourism and conservation oriented businesses. The country´s biodiversity and conservation areas network have been generating income for the national economy and the local communities, albeit not at the expected levels, in large part due to limited participation of the private sector in overall wildlife management and development of associated businesses.