Mozambique

AFD in Mozambique

The French Development Agency (Agence Française de Développement - AFD) started its activities in Mozambique in 1981, and set up its office in Maputo in November 1985. During these thirty years, AFD first focused its activities on basic infrastructure rehabilitation (telecommunications, energy, water) and rural sector development, supporting traditional (livestock farming) or export industries (cotton, cashew nuts, copra), and then broaden its financing to health and environment sectors. Photo © IcyU2

News

Approval of € 1 M for Gilé reserve

27/11/2008

The Steering Committee of the “Fonds Français pour l'Environnement Mondial” (French GEF) has approved on 27th November 2008 a 1 million euro project that aims at developing the Gilé National Reserve and its surrounding area. Being the unique protected area of Zambezia province, that reserve is one of the last wild areas in the region. It has an exceptional biodiversity which is more and more threatened by the increasing pressure on its natural resources.

The objectives of the projects are to preserve and rehabilitate the biodiversity of that national reserve, and to guarantee a sustainable use of the natural resources by the populations that live around it. The project also aims at reintroducing threatened species such has the black rhinoceros and at working for and with the communities living around the reserve (“support zone”).

The Ministry of Tourism (MITUR) has signed in June 2007 a memorandum of understanding that delegates the management of the reserve to the IGF Foundation, which will be also in charge of the implementation of the activities financed by the FFEM in that new project. That project is part of a larger development program for the reserve, to which contribute many actors such as the Italian NGO COSV.

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Seminar on Investment & Finance for EDM executives

12/11/2008

On request of Electricidade de Moçambique (EdM), the French Development Agency's training Center (CEFEB) organized, from November 12th to 14th, in Maputo, a training session on "Investment and Finance".

The Seminar gathered more than 20 participants, mostly EDM's management staff (among which two executives administrators), as well as HCB's (Hydroelectricidade de Cahora Bassa) and Intelec's.

This session, held in Portuguese, focused on project financial analysis and discussions with financial institutions (banks, IFIs, etc.). This seminar was also an opportunity to highlight AFD Group's know-how on infrastructure projects and financing. Participants were particularly interested in Nam Theun 2 Laotian dam project case-study. AFD Director in Maputo, Bruno Leclerc, presented AFD Group financial instruments as well as various kind of project engineering.

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Seminar on conservation areas in the Community of Portuguese Speaking Countries

03/11/2008

The Minister of Tourism of Mozambique (MITUR) has chaired a seminar on conservation areas in the Community of Portuguese Speaking Countries (CPSP) in Maputo on 3rd and 4th November 2008.

Policy makers, conservation areas managers, conservation specialists, academics, donors and non-governmental organizations were invited to participate.

This two-day seminar allowed to those different actors from CPSP countries to debate on their experiences regarding conservation of the biodiversity, protected areas management, or human-animal conflicts. More precisely, issues such as protected area’s contributions to development, management models of protected areas and legal issues have been discussed.

Bruno Leclerc, Director of French Agency for Development (AFD) in Mozambique, contributed to the debates by presenting AFD strategy regarding conservation areas development and management. That strategy has been presented following its three main axes: articulation between global, national and local levels, participative management of natural resources, financial and operational innovations. The participants have shown great interest in the economic justifications that motivate AFD intervention in the biodiversity sector, and in the details given on AFD interventions in Mozambique.

* Upload the powerpoint presentation on AFD's strategy in conservation areas (in portuguese only)

** Upload the presentation of AFD's strategy in the conservation sector, based on AFD's activities in Mozambique (in portuguese only)

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Meeting Ministry of Environment / donors

31/10/2008

On the 31st of October, 2008, the Minister for the Coordination of Environmental Action (MICOA) chaired a meeting gathering the Ministry and the main international and bilateral organizations and embassies involved in the environment sector in Mozambique.

As donor focal point for the environment sector (AFD), France actively participated in the organisation and coordination of the meeting, which main objective was to discuss priorities and expectations from Government as well as from donors' sides, and actions to be undertaken in order to strengthen dialogue, harmonization and coordination in the sector.

In his opening speech, France ambassador in Mozambique, Thierry Viteau, confirmed donors' commitment to support the Mozambican Government in the implementation of policies allowing the country to enter into a sustainable path of growth and development.

MICOA then presented its main priorities of action for 2009-2014, such as the Strategic Plan for Environmental Communication and Education.

On behalf of the donor community, AFD Director in Mozambique, Bruno Leclerc, presented donors' vision and expectations for the environment sector. Highlighting the main challenges that Mozambique is now facing, in terms of natural resources management, environmental protection and adaptation to climate change, he reminded that Mozambique is one of the most exposed countries to the consequences of global climate change.

An open discussion on strategies, priorities and coordination followed these presentations, and allowed MICOA and its partners to discuss further the modalities of their cooperation.

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AFD Press Conference at the CCFM

10/09/2008

French Ambassador in Mozambique, Thierry Viteau, and AFD Director in Mozambique, Bruno Leclerc, held on September, 11th a Press Conference at the Franco-Mozambican Cultural Centre, to present AFD main activities for 2007, at global and national levels: strategies, financing tools, commitments, results/impacts.

AFD activities at the international scale

AFD activities around the world are mainstreamed by three main objectives: i) enhancing economic growth, ii) fighting poverty and socio-economic inequalities (Millennium Development Goals), and iii) preserving World Public Goods, such as environment.

In 2007, the total amount mobilized by AFD and its subsidiary Proparco (including French overseas territories) was above 3,3 billions euros. 46% of which were channeled to sub-Saharan Africa.

In 2007, AFD financing flows to developing countries aimed, among others objectives, at:

providing drinking water to 4 million people,
allowing 4,7 millions children to access primary education,
providing healthcare to 2,2 millions people affected by AIDS, malaria or tuberculosis,
increased energetic efficiency through saving 2,7 tones of Carbon.

The initiative for African growth, launched by French president Sarkozy in year 2008, and fostering the growth of African SMEs through facilitated access to financing, should benefit 2000 enterprises and create more than 300 000 jobs before 2012.

AFD activities in Mozambique

One of AFD particular features is the wide range of financial products it offers: grants, commercial and concessional loans, guaranties, etc., as well as the diversity of its instruments - global or sector-wide budget support (Prosaude), institutional support, support to NGOs, projects financing – which allow AFD to tailor its intervention according to various situations.

AFD interventions in Mozambique are dictated by France specific strategy for the country, as defined in the "Document Cadre de Partenariat" – DCP (Framework Partnership Document), signed by France and Mozambique in July 2006, featuring two sectors of concentration for grants, namely health and environment.

Key figures:

	Amounts in M €
Total grants portfolio as at 01/09/2008	60,0
Total active loan portfolio AFD Proparco as at 01/09/2008	80,0
Total financing from 2001 to 2007	176,4
Total financing 2007	14,0

In parallel with those financing activities, AFD is involved in research and other strategic thinking and actively participates in aid harmonization process in Mozambique.

Perspectives of the AFD intervention in Mozambique

AFD is willing to:

pursue its lending activities to public and private sector, in particular in the area of infrastructure (energy, telecommunication, transport, etc.), focusing on projects strengthening the regional integration of Mozambique,
pursue with grants in its concentration sectors, giving more importance to programmatic approaches and budget support,
maintain its involvement in the process of aid harmonization and efficiency.