annex 1: description of the action promove comércio
TRANSCRIPT
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ANNEX 1: DESCRIPTION OF THE
ACTION
PROMOVE Comércio – Building
Competitiveness for Exports
EUROPEAN UNION
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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Project title PROMOVE Comércio – Building Competitiveness for Exports (UNIDO ID 180068)
Country Mozambique
Duration 48 months (4 years)
Donor European Union
EU financing € 6,500,000 (including 7% support costs)
UNIDO contribution € 50,000 (including 7% support costs)
Project Total € 6,550,000 (including 7% support costs, equivalent of € 428,505)
Overall and Specific
objectives
Overall objective: Improved trade, competitiveness and
business environment in Mozambique for greater market access
for the selected value chains (VCs).
Specific objective 1: Increased sustainable market-driven
Quality Infrastructure services to support the production of quality
products for the selected VCs
Specific objective 2: Improved Government coordination and
implementation of the EPA trade safeguards
Results
Result 1 Good governance and core quality infrastructure
services at the institutional level (INNOQ) upgraded to ensure
international recognition
Result 2 Increased technical competences of the conformity
assessment service providers and ensuring international
recognition as per the needs of the selected VCs with a focus on
the provinces of Nampula, Zambezia and Maputo
Result 3 Increased availability and quality of Business
Development Services
Result 4 Enhanced government knowledge on the legal and
institutional framework required to apply EPA trade safeguards
Main Counterparts Ministry of Industry and Commerce (MIC)
National Institute for Standardization and Quality (INNOQ)
Lead agency United Nations Industrial Development Organization (UNIDO)
Implementing agencies
The project will be implemented by UNIDO.
The United Nations Conference on Trade and Development
(UNCTAD) has been pre-identified as an implementing partner for
Result 4 of this Action; for this purpose, UNIDO would establish
an Inter-Agency Agreement with UNCTAD for the amount of EUR
€ 700,000 (including support costs).
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Table of Contents
A. CONTEXT ........................................................................................................................................... 6
A.1 Socio-Economic Outlook .................................................................................................................... 6
A.2 Current policies/strategies/plans......................................................................................................... 8
B. REASONS FOR UNIDO ASSISTANCE ........................................................................................... 10
B.1 The UNIDO Approach ....................................................................................................................... 10
B.2 The UNCTAD Approach ................................................................................................................... 14
C. VALUE CHAINS (VC) ....................................................................................................................... 15
C.1 Nuts, cashew nuts ............................................................................................................................ 16
C.2 Oil seeds (sesame) ........................................................................................................................... 16
C.3 Fruits ................................................................................................................................................. 17
C.4 Essential oils ..................................................................................................................................... 17
C.5 Cotton ............................................................................................................................................... 17
C.6 Key quality related bottlenecks for agriproducts destined for EU market ........................................ 18
C.7 Key general challenges affecting export performance of the Mozambican SMEs ........................... 23
D. THE PROJECT ................................................................................................................................. 25
D.1. Overall objective, specific objectives, results and activities ............................................................ 25
D.2. Theory of Change ............................................................................................................................ 41
D.3 Beneficiaries ..................................................................................................................................... 41
D.4 Coordination and synergies with other ongoing activities/other projects ......................................... 42
D.5 Sustainability strategy ....................................................................................................................... 45
D.6 Risk management ............................................................................................................................. 46
D.7 Gender mainstreaming ..................................................................................................................... 47
D.8 Environmental and social assessment ............................................................................................. 49
E. INPUTS ............................................................................................................................................. 49
E.1 Counterpart Inputs ............................................................................................................................ 49
E.2 UNIDO Inputs.................................................................................................................................... 49
F. BUDGET ........................................................................................................................................... 50
G. PROJECT MANAGEMENT .............................................................................................................. 50
G.1 Project governance and management ............................................................................................. 50
H. RBM code and thematic area code ............................................................................................... 54
I. VISIBILITY.......................................................................................................................................... 55
J. INCEPTION PHASE .......................................................................................................................... 55
K. MONITORING, REPORTING AND EVALUATION .......................................................................... 56
L. LEGAL CONTEXT ............................................................................................................................ 57
ANNEX A- THEORY OF CHANGE ....................................................................................................... 58
ANNEX B- PROJECT LOGICAL FRAMEWORK MATRIX ................................................................... 59
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ANNEX C- WORK PLAN ....................................................................................................................... 64
ANNEX D- KEY PROJECT ACTORS: STAKEHOLDER ANALYSIS .................................................... 71
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List of abbreviations
AIMO Associação Industrial de Moçambique (Industrial Association of Mozambique)
APIEX Investment and Export Promotion Agency
APME SME Business Association
B2B Business-to-business
BAU Balcão de Atendimento Único (Single-Window one-stop-shop)
CAB Conformity assessment body
CBI Centre for the Promotion of Imports from developing countries
CTA Confederação das Associações Económicas (Confederation of Business
Associations of Mozambique)
EPA Economic Partnership Agreement
EU European Union
FAO Food and Agriculture Organization
FDI Foreign Direct Investment
GDP Gross Domestic Product
GMP Good manufacturing practices
HACCP Hazard analysis and critical control points
IFAD International Fund For Agricultural Development
INNOQ Instituto Nacional de Normalização e Qualidade (National Institute for
Standardization and Quality)
IPEME Instituto para a Promoção das Pequenas e Médias Empresas (Institute for the
Promotion of Small and Medium Enterprises)
ISO International Organization for Standardization
ITC International Trade Centre
MIC Ministry of Industry and Commerce
MITADER Ministry of Land, Environment and Rural Development
MOA Ministry of Agriculture
MSME Micro, small and medium enterprise
NES National Export Strategy
NIP National Indicative Programme
NQIS National Quality Infrastructure System
NQP National Quality Policy
NTM Non-tariff measure
OVI Objectively verifiable indicators
PMB Project Management Board
PMU Project Management Unit
PQG Plano Quinquenal do Governo (Five-Year Government Program)
PSC Project Steering Committee
QI Quality infrastructure
RIP Regional Indicative Programme
SADC Southern African Development Community
SME Small and medium size enterprise
SMTQ Standard, Metrology, Testing and Quality
SPS Sanitary and phytosanitary
STDF Standards and Trade Development Facility
TBT Technical barriers to trade
TC Technical committee
TFA Trade Facilitation Agreement
UNIDO United Nations Industrial Development Organization
VC Value Chain
WTO World Trade Centre
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A. CONTEXT
A.1 Socio-Economic Outlook
Mozambique is one of ten countries with the lowest Human Development Index1 and among the ten
poorest countries with annual GDP per capita of USD 1,136. In spite of significant progress in poverty
reduction since the late 1990's, over 46% of the population continue to live below the national poverty line,
and the absolute number of poor has remained relatively constant (11.8 million people) as the population
has been growing faster.
Mozambique had enjoyed robust economic growth as a result of an extractive industry boom. Promising
natural resource discoveries (coal, minerals and gas) led to impressive economic growth averaging 7%
annually over a decade until 2015, but this trend abruptly slowed down in 2016, declining to 3.7% in 2017.
The economic downturn factors included droughts and floods that hit agriculture production, lower
commodity prices affecting mineral exports, and a contraction of Foreign Direct Investment (FDI) inflows as
several mega-projects reached completion. These were aggravated by the discovery in 2016 of undisclosed
state-guaranteed loans representing 10% of Gross Domestic Product (approx. USD 1.4bn) and the resulting
serious breach of trust in the national systems and lower investor confidence that decreased FDI inflows
and reduced perspectives to access international development finance.
The country’s high population growth rate at 2.8% translates into an estimated 300,000 new entrants into
the labour market every year2. The overall unemployment rate stands at 23.7%. The formal economy is
largely urban in nature and accounts for only 20% of all employment, whilst the vast majority of households
continue to rely on informal, smallholder agriculture. Employment in industry has stagnated over the past
years and goods produced are mainly unprocessed or semi-processed basic or raw products, rather than
activities that add significant economic value. Growth is projected to be 4.5% in 2019 and 5.0% in 2020,
driven by agriculture, which is continuing to recover from the 2015–16 regional drought, and extractive
industries, with coal exports continuing to expand.
Poverty is still predominantly a rural phenomenon in Mozambique. According to FAOSTAT and World Bank,
67.8% of the population are still living in rural areas; more than 70% of the total workforce (estimated at 10
million people) is engaged in the agricultural sector; and the vast majority of the country’s rural residents
are enrolled in small-scale, subsistence-level agriculture (World Bank, 2017). Poverty is becoming
geographically concentrated in some provinces. “Contrary to national trends, poverty increased in the 2000s
in Zambézia, Sofala, Manica, and Gaza. Jointly with Nampula, these provinces account for 70% of the poor,
up from 59% in 2002-03. Zambézia and Nampula especially are home to 38% of the population, yet nearly
half of the poor live in these two provinces” (World Bank, 2016).
Trade and export barriers
The private sector in Mozambique’s is still developing, contributing just 65% to GDP, and characterized by low productivity and competitiveness. The sector is dominated by individual entrepreneurs and micro-enterprises, with few SMEs. Factor productivity is low and value addition is limited, both in Manufacturing and Agriculture.
SMEs in the agricultural sector, represent a large portion of all registered businesses in Mozambique employing close to 70% of all working population, but they only contribute to a modest 24.1% of the national income. Agro-businesses are generally constrained by high transport costs due to poor infrastructure,
1 UNDP Human Development Indices and Indicators – 2018 Statistical Update: Mozambique occupies rank 180 out of 189 globally.
2 African Economic Outlook (AEO) 2019, African Development Bank Group 2019
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including low access to energy, inefficient ports, increased logistic costs, and costly business environment (tax, corruption, administrative costs, etc.).
The prime challenges facing the industrial and SMEs sector include the following:
Although processing activities are undertaken in most locations in the country, the efficiency of
production, awareness of and compliance with quality standards and market requirements is still
very limited.
Low levels of education and lack of skills among the work force.
Infrastructure issues including the lack of adequate roads, electricity and water supply, exacerbated
in the central areas of the country by the Cyclone Idai in March 2019.
As the region moves towards further integration, local industries face the prospects of increasing
competition from neighboring SADC countries but also increased opportunities.
Limited availability of data and analytical capacity to identify practical trade.
For the private sector to be integrated into regional and international trade, it is necessary to increase of
exports in primary value chains and at the same time promoting the development of the domestic industries.
Private sector voiced that in order to benefit from EPA implementation there is a need for:
promoting and developing product value chains with higher trade potential (e.g. fish, grains, oilseeds,
fruits, almonds, etc.);
encouraging and strengthening private sector investment (e.g. technology, management and capital),
partnerships and business links with national industries in key value chains;
promoting and strengthening of compliance of local production with requirements coming from foreigner
investors in Mozambique and export markets (with particular focus on food related products).
The low competitiveness and limited capacities of the Mozambican private sector directly affect the
country´s economic growth, its exports value and volume and its overall export performance. International
standards are increasingly demanded, especially for exporting to developed economies, and only few
national enterprises are currently able to meet EU market´s requirements. Local producers are usually not
aware of the fact that, in order to export their products, they must meet higher standards and health and
sanitary certifications than those required by the local market. Moreover, even when they are aware of this
issue, they often lack the capabilities and the resources to address this constraint.
Despite the general trend of reducing tariffs and liberalization of cross-border movements of goods,
developing countries have to overcome many obstacles to reap the benefits of trade. A key challenge facing
developing countries like Mozambique is the lack of national capacity to comply with the WTO Technical
Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) agreement requirements, which govern the
global trading system. In order to meet this challenge, developing countries need significant investments to
establish a National Quality Infrastructure System (NQIS) and develop institutional infrastructure related to
Standards, Metrology, Testing, and Quality (SMTQ) to become an able partner in the global trade regime.
Regarding the national market in Mozambique, a consequence of weak SMTQ infrastructure, the local
population is exposed to various risks through sub-standard imported products as well as through the
potential sub-standard quality of locally produced products. In relation to exports, producers in developing
countries face difficulties to meet international export requirements such as EU export requirements
(consisting of: technical regulations, standards and Voluntary and Sustainability Standards), while the EU
remains an important export destination for developing countries around the world. Reaching the product
quality, health and sanitary certification is one of the key challenges for local firms in Mozambique to be
able to export and access foreign markets.
The development of Mozambican private sector through improved export performance could contribute
towards income generation for producers in a competitive and sustainable way. However, in order to
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increase their added value to the national economy, SMEs need to improve their compliance with quality
standards to access new export markets. In general, increased awareness and uptake of standards at
private sector level occurs when large companies request SMEs in their supply chain to comply with
international quality, safety and environmental standards. It is also key for increasing sustainability of the
quality infrastructure, which is largely determined by the ability of a critical mass of national SMEs able to
comply with quality and safety requirement. In particular, SMEs in the agro-food sector exporting to the EU
need to comply with several legal and non-legal requirements in order to succeed and be internationally
competitive. Compliance with European Food safety regulations to ensure: the proper control of food
imported to the European Union; the allowed levels/ restriction of contaminants (e.g. limited use of
pesticides, absence of mycotoxins, amount of heavy metals, etc.); and the labelling and packaging
requirements; are among main challenges faced by Mozambican SMEs in the sector. Food safety
certification including the implementation of HACCP system in the producers’ daily operations supported
with laboratory tests and a reliable traceability system, can provide great opportunities to increase exports
and new markets access. Also, the voluntary implementation of corporate social responsibility (CSR)
standards, the certification of sustainable practices and organic productions, can represent important
advantages.
A.2 Current policies/strategies/plans
In order to guide Mozambique’s overall approach to using trade as a tool for economic development and
job creation, a number of strategies and policies are relevant tackling various aspects and led by different
institutions. The most directly relevant to the present action are the Industrial Policy and Strategy, the
National Export Strategy and the Trade Policy and Strategy.
1. Project is aligned with national and regional trade related policies, strategies and agreements
The Trade Policy and Strategy (2017-2021) updates the 1998 strategy; looks into updated Government
trade policy commitments, such as the SADC EPA and as well as the African Growth and Opportunity Act
(AGOA), and takes into account regional and multilateral developments. It identifies priority value chains
and the constraints along those value chains.
The Industrial Policy and Strategy 2016-2025 aims to: a) increase industrial production through attracting
investment, b) increase labor-intensive industries and support to SMEs, c) increase exports and reduce
imports, d) expand value chains and add value of industrial products through increased use of domestic
materials. Seven priority industries were selected, including agro-industry which is supported by this action.
Of its eight strategic development pillars, the present action contributes to the pillars related to quality
infrastructure and certification.
The draft of second National Export Strategy identifies priority sectors for export promotion, as well as
does needs analysis. The EPA was also taken into consideration. The National Export Strategy underlines
the need to strengthen the quality infrastructure system and to enhance the national capacities to improve
the quality of products and to develop capacity to add value and identify specialized niche markets. This
strategy also highlights the need to develop trade.
Mozambique’s poverty reduction efforts are to be streamlined into the Five-Year Government Program
(PQG - Plano Quinquenal do Governo). The PQG for the 2015-2019 period has as its central goal to
increase employment, productivity and competitiveness, to improve living conditions of Mozambicans in
rural and urban areas in an environment of peace, harmony and tranquility, while consolidating democracy
and inclusive participatory governance. The project will contribute towards the following PQG priorities: ii)
development of human and social capital; iii) promotion of employment, productivity and competitiveness
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and iv) development of economic and social infrastructure. Following the national parliamentary and
presidential elections in October 2019, a new Five-Year Plan 2020 – 2024 is expected to be adopted in
2020.
The EU SADC EPA 3 provides a legal framework with clear trade facilitation objectives. It solidifies
Mozambique´s duty-free and quota-free access to the EU market, even once Mozambique graduates to a
middle-income country. It also allows for more flexible rules of origin to facilitate value-addition in
Mozambique. The access to the European market offers increased opportunities once local production
capacity grows. Mozambique is not a part of SACU, thus having less experience in dealing with similar
agreements. Government capacities are a challenge, compounded by a slow pace of reform
implementation. In order to address such weaknesses and identify capacity gaps, a National EPA
Implementation Plan (NEIP) was adopted by the Government of Mozambique in April 2018, detailing the
necessary government actions to maximize private sector opportunities. Areas requiring capacity building
include: reinforcing government technical capacity, facilitating customs particularly on major regional trade
routes, establishing trade safeguard capacity, supporting quality infrastructure services4, raising awareness
of EPA opportunities.
2. Project is aligned with EU developmental priorities for the country and the region
The present action contributes to:
- the 11th EDF National Indicative Programme (NIP) first priority - Good Governance and
Development – which aims to contribute to poverty alleviation, sustainable and inclusive growth and
consolidation of democracy. It contributes to the relevant NIP expected results aimed at the
improvement of the business environment.
- the 11th EDF Regional Indicative Programme (RIP) for Eastern Africa, Southern Africa and the
Indian Ocean (EA-SA-IO) that establishes regional economic integration as its main priority area.
- Aid for Trade Strategy5 (project supports quality infrastructure, a key area of Aid for Trade, and it
also aims to strengthen key partners (e.g. business associations) for promoting economic
opportunities).
- The 2017 European Consensus on Development6 contributes to the attainment of the SDGs; the
present action contributes mainly to SDGs 17, 8 and 9.
- The EU Gender Equality Policy 2016-20207, objective 15 "Equal access by women to financial
services, productive resources including land, trade and entrepreneurship".
3 With EPA application in Mozambique from 4th February 2018, the SADC EPA is the first EPA to enter into application in Africa for the entire group of partner countries (six SADC EPA countries are: South Africa, Swaziland, Lesotho, Mozambique, Namibia, and Botswana).
4 Quality Infrastructure can be defined as the system comprising the organizations (public and private) together with the policies, relevant legal and regulatory framework, and practices needed to support and enhance the quality, safety and environmental soundness of goods, services and processes. Producers recur to Quality Infrastructure services to ensure that their products meet various quality requirements.
5 Communication from the Commission to the European Parliament, the Council, the European Economic And Social Committee and the Committee of the Regions "Achieving Prosperity through Trade and Investment, Updating the 2007 Joint EU Strategy on Aid for Trade" COM(2017) 667 final of 13.11.2017
6 OJ C 210 of 30.6.2017
7 Joint Staff Working Document: Gender Equality and Women's Empowerment: Transforming the Lives of Girls and Women through EU External Relations 2016-2020 SWD(2015)182 final of 21.9.2015
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B. REASONS FOR UNIDO ASSISTANCE
B.1 The UNIDO Approach
UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty
reduction, inclusive globalization and environmental sustainability. The mission of UNIDO is to promote
and accelerate inclusive and sustainable industrial development (ISID) in developing countries and
economies in transition.
Past projects in Mozambique and lessons learnt
UNIDO past technical assistance work in Mozambique contributed to increased confidence in the quality
infrastructure in the country and the progressive alignment of the quality infrastructure to international
standards which sets a good foundation for the successful implementation of the current project.
The most significant UNIDO projects in Mozambique are listed below:
The Private Sector and Quality Promotion Programme for Mozambique – COMPETIR com
Qualidade (funded by EU and UNIDO (contribution from the Government of Austria), 2012-2016)
– strengthened institutional and private sector capacities at the basic level. The project covered
essential aspects of policy, QI institutions, service providers, and the value-adding use of
international standards and conformity assessment procedures for the private sector. The main
achievements under this projects were:
a. the development of the Quality Policy Document and implementation plan
b. INNOQ calibration laboratories accredited
c. INNOQ accredited for ISO 9001 Quality Management System Certification (QMS) and ISO
17065 Product Certification Management requirements implemented
d. INNOQ Strategy and Business Plan developed and website launched
e. 9 laboratories in Maputo, Nampula, Beira and Quelimane supported through technical
assistance (provision of equipment and technical expertise) and towards accreditation
f. ISO 17025 Management Systems of Laboratories implemented
g. 19 enterprises supported towards ISO 9001 QMS implementation
h. Quality Award Scheme developed with 4 successive editions supported (2013-2016) with special category for female entrepreneurs (gender focus) and successful participation to SADC Regional Awards.
Also refer to Table 1 for the main lessons learned from past projects and to Table 2 (page 20) for more detailed achievements under this project.
“Business Environment Support and Trade Facilitation project for Mozambique” (BESTF Project, funded by the EU and UNIDO, concluded on 2011). The main objective of the project was to promote export led growth and to improve the existing investment climate by alleviating trade-related constraints affecting the business environment in Mozambique.
Enhancing capacities of Mozambican Food Safety and Quality Assurance System for trade,
funded by Swiss State Secretariat for Economic Affairs (SECO), implemented between 2006 and
2009.
Implementation to SPX programme methodology for company profiling and matchmaking-
implemented between 2013 and 2018.
The main lessons learnt from the experience obtained in the country are showing in the below table.
TABLE 1 – LESSONS LEARNED FROM PAST PROJECTS
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Lessons Learned Stakeholder’s ownership and capacities
Properly addressing the pre-conditions and stakeholders’ capacities, ownership and mobilization at early stages of project preparation in order to avoid or minimize delays during implementation.
UNIDO presence Added value that was provided by UNIDO’s presence in Mozambique. UNIDO team has demonstrate having a positive impact on the project in terms of facilitating operations, increasing visibility and providing synergies with other stakeholders’ and programs.
Proactive approach to donor coordination
The project management should recognize that donor coordination involves more than just avoiding duplication and adopt at an early stage a proactive approach seeking to build the synergy of the interventions through partnerships with other donors that could lead to co-financing or parallel financing.
Visibility Visibility of the project and EU should be closely monitored. A website for the project and an electronic newsletter should be launched as soon as possible. Visibility on the websites of beneficiary organizations should also be ensured.
Cross-cutting issues (gender, environmental, good governance)
The mainstreaming of cross-cutting issues into project implementation (as in the case of women entrepreneurs) should start at an early stage of the project.
Sustainability The preparation of a comprehensive and useful sustainability strategy should start at least one year before the completion of the project.
Knowledge transfer
Reinforce team work and mentorship between consultants and beneficiaries’ technical staff at every stage of activity implementation, with clear chain of responsibilities, to ensure effective knowledge transfer.
Manual for standard operating procedures (SOPs)
The use of procedures (COMPETIR SOPs) is recommended. Procedures define all project management and administration processes to be followed.
UNIDO approach to QI strengthening
For SMEs to be competitive in international markets it is important to ensure that they: (i) have the technical
capacities to produce quality and innovative products, (ii) comply with international market regulations and
standards, (iii) promote their products and connect to potential markets. For them to achieve the above-
mentioned, access to services offered by QI, business development services, financing, sector coordination
and dialogue between public and private stakeholders is pivotal.
In this way, for more than 40 years UNIDO has been supporting partner countries to increase their
competitiveness through stronger quality infrastructure systems and compliance with standards. UNIDO’s
approach to trade capacity building for developing countries has evolved to a holistic and systematic
approach, which comprises of five components: governance, QI institutions, QI services, enterprises/SME
and consumers.
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Strengthening QIS at the national level is essential for SME to conform to the demanding standards,
technical regulations and market requirements, so as to connect and compete in the global market. It
contributes to increasing consumer confidence in product safety and quality, including respect for the
environment. Furthermore, having policies in place to promote a culture for quality is crucial to ensure an
environment where SME, institutions and consumers consistently follow and apply quality guidelines and
promote quality-focused actions. The value-added impact of standards compliance includes increased
market access, increased speed at which goods cross the borders, acceptance of conformity assessment
certificates at both sides of the borders, reduced rejections of goods, and reduced trading costs for private
sector, thus making SME and enterprises in general more competitive and sustainable.
FIGURE 1 UNIDO’S SYSTEMIC APPROACH FOR PROMOTING STANDARDS AND QUALITY
In addition, UNIDO’s value chain approach is based on the idea that many actors connected along a chain
produce and bring goods to end-users through a complex and sequenced set of activities through which
value is added at every step. In each of the stages of the value chain the required QI services can be
mapped and technical assistance can be designed to provide such services effectively and efficiently;
otherwise the suppliers of products and services will not measure up to the minimum requirements in the
world markets, i.e. remain in a sub-optimal business environment. Worse, if a country’s QI does not meet
international requirements, its producers may be unable to join international supply chains, e.g. entire
ranges of agro products such cannot be exported.
The current project will take two-fold approach to the Quality Infrastructure System strengthening in
Mozambique by focusing on:
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- Quality Infrastructure as a system – it works as a whole, all of its components/institutions need to
work together for it to function properly. The whole system is only as strong as the weakest of its building
blocks.
- Priority value chains – the value chains will be selected during the Inception Phase. The project will
focus on the QI needs of the private sector. The aim is for relevant QI institutions to become service
providers for the private sector, with the particular focus on supporting key value chains. The services
to be developed will also benefit other sectors.
Therefore, by promoting priority value chains in Mozambique, UNIDO pursues three development goals that
can benefit all actors in the chain by: (i) increasing productivity and value added; (ii) improving employment
opportunities; and (iii) working to enhance market access and higher export levels.
UNIDO approach for industrial upgrading and enterprise modernization
In developing countries, industrial small and medium enterprises (SMEs) often lack managerial capacities and have insufficient knowledge of business processes as well as of operational and production cycles. Furthermore, their performance is often hindered by poor technologies utilized and limited access to finance needed to expand production capacities. Individual SMEs also find it very difficult to deal with policy and regulatory challenges that impact on their sector or on the business sector in general. This results in creating obstacles and barriers to SMEs to compete on domestic and international markets. Tackling these challenges in a holistic way will allow SMEs to produce innovative, cost effective, safe, reliable, and quality products in sufficient volumes. SMEs need to embrace a focused approach to improving and sustaining competitive manufacturing capabilities, proving conformity with market requirements and connecting to external markets. Furthermore, the increased consumer attention on social and environmental dimensions of production processes and Corporate Social Responsibility (CSR) requires adjustments in global value chains and business models across all sectors. The UNIDO’s approach in the Industrial Upgrading and Modernization Programme (IUMP) aims to contribute to economic growth by increasing the capacities of local industries for value added generation, economic diversification, exports and employment creation. With IUMP, UNIDO advocates that competitiveness and innovation are the key dynamics to take advantage of liberalization and to drive economic development and growth. The IUMP has achieved remarkable results worldwide since 1996 with experiences for example at country level in Africa (Tunisia, Algeria, Egypt, Cameroon, Senegal, and Morocco), and sub-regional level (ECOWAS, UEMOA, CEMAC). The integrated technical assistance offered by IUMP usually consists of remedial actions at three levels (macro, meso, and micro) to maximize industrial competitiveness (see Figure 2). A holistic IUMP focuses on promoting competitiveness and diversification of manufacturing sectors along with improving regulatory frameworks and the business environment, and reinforcing institutional capacities of technical and business support infrastructure. The approach puts special focus on priority products, sub-sectors and value-chains with high employment and export potential, aiming to achieve:
Expanded industrial production & diversification
Better quality of products and quality compliance, with increased value added
Creating new jobs and increased technical skills of labor
Strengthened managerial capacities of the major government and private stakeholders
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FIGURE 2 UNIDO’S THREE LEVEL APPROACH ACTIONS FOR INDUSTRIAL UPGRADING AND MODERNIZATION
For this project, and considering the country context, the interventions will focus on the micro and meso levels associated to selected value chains: Micro level – Empower enterprise performance
The actions will follow four stages including (i) an overall strategic diagnosis of SMEs identifying their bottlenecks and areas of intervention, based on which (ii) an upgrading plan with priority actions is designed in the form of a business plan so the intervention is bankable and sustainable in the long term, (iii) enabling SMEs to approach financing institutions in an expeditious manner. Subsequently, (iv) the implementation of the upgrading plan is carried out by teams of highly qualified international experts in close cooperation with local experts trained by IUMP. The programme adopts a value chain approach, so identify and address major weaknesses along the value chain instead of concentrating on just one group of enterprises or a location.
Build demand driven industry support services
The quality and capacities of Business Development Services (BDS) providers will be assessed against the needs of SMEs in selected value chains, and a consequent capacity building programme will be designed to raise the quality of their existing services and create new ones in response to SME demand for meeting market requirements and new access; BDS providers will be trained and involved in the SME upgrading process to gain practical experience in providing assistance to beneficiary SMEs. Efforts for strengthening linkages between businesses, institutions and academia to better meet the needs of SMEs in terms of product and process innovation, technology transfer for value addition, access to finance; will be pursued.
B.2 The UNCTAD Approach
UNCTAD’s role and approach aim at creating an enabling economic environment for inclusive and
sustainable development by supporting developing countries, particularly LDCs, in the formulation and
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implementation of trade policies, while ensuring coherence between SDGs and the trade agenda at bilateral,
regional and multilateral levels. Hence, UNCTAD technical assistance seeks to enhance the capacity of
developing countries in understanding the nature and dynamics of the global economic system and
facilitates international cooperation for the development of productive capacities and industrial upgrading in
developing nations and advise them on appropriate measures to this end.
Accordingly, some of the broad thrusts of its work conducted in this area include the following:
Supporting developing countries in their participation in the multilateral trading system;
Assisting LDCs in making use of existing initiatives and programmes such as duty-free and quota-
free schemes, preferential rules of origin and the LDC Services Waiver;
Providing technical assistance and capacity-building in the area of multilateral and regional trade
negotiations, formulation of trade policy frameworks and services policy reviews;
Working on trade data and statistics, and analysis of services trade for development;
Providing technical assistance and capacity-building before, during and in the follow-up of the
process of accession to the WTO;
Monitoring and assessing the evolution of the international trading system and its trends from a
development perspective, with attention to its potential contribution to and/or impact on the SDGs;
In this context, UNCTAD has been supporting African countries in their trade negotiations at the WTO as
well as in the framework of their regional integration processes, including SADC, ACP-EU EPAs and the
African Continental Free Trade Area (AfCFTA).
It is expected that UNCTAD intervention under this project will contribute in building and upgrading the
capacity and skills of trade officials and other government concerned institutions to design and implement
coherent and best-fit national trade safeguards and to address the multiple technical challenges arising
during the enforcement and implementation phase. Activities will be carried out in close consultations and
collaboration with MIC and UNIDO; both at headquarters and the country office. In the delivery of this
assistance programme, UNCTAD will take into account the overall project objective, i.e. to improve trade
and the business environment in the beneficiary country, as well as the UN development agenda, with a
particular emphasis on inclusiveness, sustainability and gender mainstreaming imperatives.
C. VALUE CHAINS (VC)
For the selection of the priority value chains UNIDO will conduct a value chain and sector analysis to
identify the most relevant and appropriate VCs and sectors with export potential for Mozambique’s
economy with a relevance for both on QI and SMEs interventions.
Such assessment of the VC from the export perspective will be undertaken during the Inception Phase.
The following criteria will be considered:
- Sectors that are labor-intensive (to eradicate poverty through employment generation);
- Sectors with potential spill-over effects to improving competitiveness throughout Mozambique’s
economy;
- Sectors with the greatest competitive / comparative advantage;
- Sectors with possibility of high added value;
- Sectors with potential for attracting domestic and foreign investment;
- Products with stable demand in international markets and alignment with the policies and
strategies of the country.
- VCs / sectors addressing QI challenges that can unlock market access
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Based on the National Export Strategy and the UNIDO field study from 2018 titled “Quality Infrastructure
and Value Chains in Mozambique”8, the value chains to be considered for the analysis at the Inception
Phase might include:
- Nuts and cashew nuts (raw and processed);
- Oil seeds (i.e. sesame);
- Fruits;
- Essential oils (fast growing emerging VC with big potential);
- Cotton (cash crop of traditional importance for Mozambique).
C.1 Nuts, cashew nuts
There are 16 factories in operation in the country. Most of the semi-industrial processing plants are located
in Nampula province in the so-called “Cashew Triangle” (Monapo, Murrupula and Moma) and operate on a
seasonal basis; it is estimated that they processes over than 60% of the national production.
The potential for increased value addition in Mozambique consists “in improving production and yield, the
processing capacity and the quality all along the value chain and to add new down-stream activities and
products, including market niches such as Fair Trade. Cashew products like butter and sunscreen command
high prices in international markets due to the value addition to the raw cashew nuts. However, this also
requires significant investments and expertise –both areas where Mozambique currently lags in terms of
capacity” (ICT, 2012a: 4) and workers training. “Without a strategy for the transformation of the cashew
industry as a whole, along the social and economic product and value chain, the situation of the workers
would be unsustainable” (Castel-Branco, 2015: 120) and their export possibilities will be circumscribed to
raw cashew.
European cashew nut imports are growing, driven mostly by a consumer trend towards healthier living. The
Netherlands, Germany, the United Kingdom and the growing markets in Central and Eastern Europe offer
opportunities for developing country suppliers. Food safety certification supported with laboratory tests,
joined with corporate social responsibility (CSR) standards can provide great advantages for developing
country exporters. Strengthening linkages with European import promotion agencies, such as the Dutch
Centre for the Promotion of Imports from developing countries, that provides support for exporting to the
European market through information and advisory services on legal, food safety, packaging, labeling and
other requirements, could help exporters in Mozambique to capitalize EPA export opportunities.
C.2 Oil seeds (sesame)
Improving and increasing house-hold production and local sale and consumption of traditional vegetables,
as well as protein- and nutrient-rich pulses and oilseeds in Mozambique has significant potential to increase
incomes and reduce nutritional deficiencies.
The European market for oilseeds is growing and offers interesting opportunities for suppliers in developing
countries. Between 2011 and 2015, there was steady growth in European imports of oilseeds in terms of
volume. Total imports recorded an average annual growth of around +5% for selected oilseeds. European
imports of these oilseeds reached 5.4 million tonnes (€ 4.1 billion) in 2015.
8 The purpose of this study was to identify the most relevant sectors in terms of production and export potential for Mozambique focusing on those sectors where QI strengthening can trigger the market access.
17
Sesame: sesame production in Mozambique constitutes a big opportunity and most of households in
Nampula (being the largest producer), Zambézia but also Manica, Tete, Sofala and Cabo Delgado provinces
grow sesame informally without any formal organizational setup. As in other value chains, uneven sesame
production is characterized by the use of unimproved seeds, generally together with paprika and jatropha,
with few crop management practices and postharvest management. In general terms “production levels
seem to be highly dependent on climatic variations and the prevailing high volatility of commodity prices”
(ITC, 2012b: 5).
C.3 Fruits
In accordance with ITC (2012c) the processed fruit holds significant potential to contribute to Mozambique’s
efforts to diversify its exports, and enable stakeholders throughout the linkages of the value chain to earn
increased export revenues”. Nevertheless, Mozambique is a net importer for all fruit juices, mainly from
South Africa, so any increase in production capacity may first translate into decreased reliance on imports,
and only then increased exports. The export capacity must be a result or an upgrading of satisfying the
domestic market in quantity and with high quality.
Fruits such as bananas and papayas grow throughout the whole year and Mozambique’s brand of mangoes
and oranges have also a global recognition. The main areas of production are Cabo Delgado, Manica
(Chimoio), Nampula, Inhambane, Sofala, Zambézia and Incomati in the Magude and Moamba districts9.
C.4 Essential oils
The Mozambican great aromatic plant diversity and good overall knowledge at a botanical level are signals
of potential for developing of essential oil production from wild plants. The possibility of this activity be
exploited either by small scale operators in rural areas and commercial farmers and the multiplicity effect of
generating considerable jobs, income, added value, and the contribution to poverty reduction of the local
population and of the country are some of the reasons why the CPI – Investment Promotion Centre of
Mozambique, is keen to promote the sector10.
The European demand for essential oils is strong. Increasing competition for these natural ingredients from
emerging markets and pressure on raw material production spur European importers to search for new
sources. In the next five years, the value of the essential oils market is expected to continue to grow. Grand
View Research has forecast that the global market for essential oils will grow from US$ 5.51 billion in 2014
to US$ 11.67 billion in 2022. The growing demand for essential oils is primarily driven by a general increase
in the demand for natural products, including natural flavorings for processed food11.
C.5 Cotton
Historically cotton has been an important agricultural export crop for Mozambique. Produced on large
plantations during the colonial period, cotton today is one of the major sources of income for rural
households in central and northern Mozambique. Mozambique’s importance as a cotton exporter has
marginally improved over the period 2006-2014 climbing from 23rd to 18th place in the global ranking by
export value and with global market share increasing from 0.48% to 0.54% over the same period. USA,
9 According to estimates, more than 1 million smallholders are involved in fruit production activities in the Zambézia province alone” (ITC, 2012c: 4).
10 Report on A Study into the Potential of Aromatic Plants for Essential Oils in Mozambique” by MBB Consulting Services South (Pty) Ltd, Stellenbosch, South Africa, In association with African Business Access, Cape Town, South Africa, July 2006
11 https://www.cbi.eu/market-information/natural-food-additives/essentials-oils-food/
18
India and Australia are the market leaders with the latter two more than doubling the value of cotton exports
over the last 10 years. In Africa, Mozambique is outperformed by West African countries with the export
value of cotton in Benin and Cote d’Ivoire growing by significantly more than for Mozambique, and Nigeria
and Burkina Faso overtaking Mozambique in the world rankings.
C.6 Key quality related bottlenecks for agriproducts destined for EU market
Compliance to standards and trade facilitation is growingly embedded within value chains, global trade is
governed by multilateral trade rules such as the World Trade Organization (WTO) agreements on Technical
Barriers to Trade (TBT) and the Sanitary and Phytosanitary (SPS) measures. Quality and compliance of
products and services with market requirements and standards - be this on consumer health and safety,
environmental impact, labour conditions or sustainability - are key elements of competitiveness in global
business relations. A demand-driven quality culture, together with a Quality Infrastructure System and its
conformity assessment services support economic operators (in particular SMEs to achieve and prove
conformity with market requirements), compete on international markets and connect to global value chains.
Mozambican private sector players in order to trade and export need to comply with a number of the
requirements as defined by the destination markets. In case they are not able to comply or they do not have
access to local quality infrastructure enabling them to demonstrate this compliance in the internationally
recognized way they will not be able to benefit from the new market opportunities. Those requirements in
the case of the agriproducts destined for the EU market are shown in the below table.
TABLE 2: Requirements for agriproducts destined for the EU market
Technical regulations (mandated by law)
All foods, sold in the European Union must be safe. Additives must be approved. Harmful contaminants, such as pesticide residues, and excessive levels of mycotoxins or preservatives are banned. The General Food Law is the legislative framework regulation for food safety in Europe. Two aspects of this law are particularly important for Mozambican exporters and these refer to control of food imported to the EU and contaminants. With regard to the control of contaminants - European Commission Regulation sets maximum levels for certain contaminants in food products. Some of the key legally binding requirements that need to be complied with by the Mozambican companies when exporting to EU:
• Limited use of pesticides. The European Union has set maximum residue levels (MRLs) for pesticides in and on food products
• Absence of mycotoxins • Limited amount of heavy metals in food • Reducing the risk of microbiological contaminants • Safe packaging and informative labelling.
Standards Food Safety Certification as a basis for entering the European market. Although food safety certification is not obligatory under European legislation, it has become necessary for almost all who want to export food to the European Union. Most established European importers would not work with suppliers who cannot provide some type of food safety certification proof as the basis for cooperation. The most popular certification programmes are:
• Food Safety Management Standard (ISO 22000) • British Retail Consortium Global Standards (BRC) • Food Safety System Certification (FSSC 22000).
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Voluntary and Sustainability Standards (VSS)
Environmental protection, organic and fair-trade certification schemes are growing in popularity in Europe and are increasingly demanded by the European consumers. To market their products as organic in the European Union, producers from developing countries must meet European organic farming requirements.
A robust national quality infrastructure system in Mozambique will allow local private sector actors not only
to improve the quality and competitiveness of their products but most importantly would allow them to prove
to the regional or international buyers (incl. EU) that their products meet and comply with quality
requirements of export markets (including environmental and health and safety requirements).
TABLE 3: Challenges associated with Quality Infrastructure (QI) in Mozambique from the perspective of trade
and consumer protection
QI Why is it IMPORTANT? CURRENT STATUS in
Mozambique CHALLENGES
INN
OQ
’s s
usta
inab
ilit
y
(Result 1
)
The three important aspects of the financial sustainability of any National Standardization Body are; the ability to generate revenue, the efficient and focused operations following the business unit concept and becoming a demand driven provider of QI services to the private sector.
INNOQ’s as any organization needs a business strategy to best determine the future direction of their business and how they want to positions themselves in the market. The most current Business Strategy and Plan is for the years: 2014-2016.
The untapped business opportunity for INNOQ would be a well-functioning training department, which could be a relevant source of revenue.
Marketing is an important tool in creating the link between QI service providers and those who demand those services (private and public sector). INNOQ’s has developed with the help of COMPETIR project a Marketing Strategy and Plan in 2016.
INNOQ´s Business Strategy and Plan need to be updated and implemented.
INNOQ training department lacks: *capacity both in terms of staff and in terms of competencies *solid training curricula matching private sector needs.
Marketing Strategy and Plan for INNOQ need to be updated and implemented.
INNOQ needs to be re-branded as a demand driven QI service provider to the private sector.
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Nati
on
al Q
uality
Po
licy (
NQ
P)
(Result 1
)
The National Quality Policy (NQP) defines a holistic and coherent approach by the government to the National Quality Infrastructure (NQI) to avoid unnecessary duplication and fragmentation of activities and leads to the optimized use of resources (financial and human). QP is a tool for allocating QI resources to the QI services demanded and needed by the strategic value chains for the country.
The NQP for Mozambique is currently being revised under the leadership of MIC and INNOQ and with the financial support of the EU (under the Trade Related Facility regional project).
The implementation of the updated NQP.
Alignment of the QI horizontal legislation with QP and international best practices.
Monitoring of the NQP implementation progress with the help of indicators.
Tech
nic
al
reg
ula
tio
ns
(Result 1
)
Technical regulations of the domestic and export markets are legally binding requirements with which private sector actors need to comply in order to export. In case technical regulations are outdated or do not follow international best practices can constitute a barrier to trade and unnecessary burden for the local producers.
Technical regulation framework is outdated and does not follow international best practices.
Mozambican regulators lack expertise on “better technical regulations”.
Mozambican regulators lack expertise on Regulatory Impact Assessment.
Drafting Technical Regulations related to the priority VCs.
SP
S a
nd
TB
T e
nq
uir
y p
oin
ts
Under the World Trade Organization Agreement on the application of Sanitary and Phytosanitary Measures (the SPS Agreement) and Technical Barriers to Trade (TBT), each Member of the WTO has obligations relating to “transparency”. In implementing the agreements, countries are required to identify a single central government authority to be responsible for the notification requirements. E.g., countries are required to publish all sanitary and phytosanitary measures (SPS) and notify changes to SPS measures.
In Mozambique the SPS enquiry points is at the Ministry of Agriculture and TBT enquiry point at INNOQ.
Based on the USAID assessment study there are improvements needed to the enquiry points operations pertaining to all three areas of transparency: the publication of regulations, notifications, and responding to enquiries.
These needs are being addressed by the Trade Related Facility (TRF) Programme for the Southern Africa Development Community (SADC)12.
12https://ec.europa.eu/europeaid/projects/trade-related-facility-trf-southern-africa-development-community-sadc_en and https://www.sadc.int/sadc-secretariat/directorates/office-deputy-executive-secretary-regional-integration/trade-industry-finance-investment/sadc-trade-related-facility-trf/
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Sta
nd
ard
izati
on
(Result 1
)
Standards provide people and organizations with a basis for mutual understanding, and are used as tools to facilitate communication, measurement, commerce and manufacturing.
Standards play an important role in the economy, by:
*facilitating business interaction and trade
*enabling companies to comply with relevant laws and regulations
*speeding up the introduction of innovative products to market
*providing interoperability between new and existing products, services and processes.
In Mozambique the function of standards development still needs improvement in order to among others increase private sector participation in the standardization process. To increase sustainability there is a need to increase application of voluntary standards. There is evidence that the number of standards sold is slightly increasing over years (in 2012 it was 275 standards and in 2015 - 396), but is still way below the need of an economy like Mozambique. The importance of standards needs to be promoted in particular focusing on the value chains of interest.
Standardization function at INNOQ needs to follow the internationally recognized good practices in standardization.
National standards related to selected value chains need to be put in place or aligned with the international best practices.
Awareness raising on benefits of standards to increase application of voluntary standards
Cert
ific
ati
on
(Result 2
)
Reaching a certain quality requested by international and regional markets leads to the associated challenge of proving conformity, in internationally recognized way, with international standards. Certification does not only prove conformity with market requirements, it builds trust into the business partnerships and opens new market opportunities.
The certification department of INNOQ had been assisted by COMPETIR project and obtained accreditation for management systems standard (ISO 9001) which was a major achievement.
Due to cost, time and language consideration it is necessary that increased range of certification services is offered in the country and provinces.
INNOQ’s offer of the accredited certification services is limited in view of the private sector needs (e.g. food safety management, product or personnel certification are not being offered).
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Metr
olo
gy (
incl. leg
al an
d i
nd
ustr
ial m
etr
olo
gy)
(Result 2
)
Accurate measurements and measuring equipment are needed for the protection of health, safety, the environment and consumers. They are vital in contracts between individual business partners and in world trade in general as it helps ensure that customers are given the correct amount of product traded. They are an essential element in achieving globally accepted testing results.
INNOQ today is the main provider of metrological services in Mozambique; it also fulfils a regulatory function for the area of legal metrology.
INNOQ’s modern metrology laboratories complex is based in Zimpeto and COMPETIR project assisted with its establishment and inauguration. The project also assisted INNOQ with building up calibration capabilities which led to INNOQ’s achieving accreditation for mass, temperature, volume, electricity and pressure.
The current metrological capacity in the provinces outside Maputo are very weak or non-existent.
INNOQ’s accredited calibration scopes need to be increased in response to the private sector needs.
INNOQ needs to extend provision of metrological services to the provinces, were the clients are.
INNOQ’s legal metrology function needs to be strengthened (e.g. with regard to pre-packaging).
INNOQ is member of BIPM13, however it is not signatory of any MLA14.
INNOQ is only a corresponding member of OIML15.
13 International Bureau of Weights and Measures - BIPM
14 Multilateral Recognition Arrangements - MLA
15 International Organization of Legal Metrology - OIML
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Testi
ng
lab
ora
tori
es
(Result 2
)
The Mozambican exporters of agriproducts to the EU need to comply with strict maximum allowed levels of mycotoxins as well as with that of harmful contaminants (pesticides, heavy metals, microbiological contaminants, etc.). Therefore, to trade the Mozambican exporters need to be able to provide the test results from a competent (accredited) laboratory to prove that their products comply with EU requirements (and are therefore safe) and can enter the EU market.
Currently there is no sufficient accredited testing capacity in Mozambique for the private sector to ensure compliance with the EU requirements. And in particular the capacity is missing in the provinces of Nampula and Zambezia.
Under the COMPETIR project nine (9) laboratories in Maputo, Nampula, Beira and Quelimane received technical assistance, seven (7) for their first accreditation and two (2) for an extension of their scope. LIP Beira, LIP Quelimane, Laboratory UNILURIO, Laboratory Sementes, LEM, LAM and LADEM were audited for the first time. LNHAA and LIP Maputo were supported to sustain their accreditation status and to extend their scope of accreditation to new tests.
Lack of sufficient accredited testing laboratories in Maputo, Zambezia or Nampula for mycotoxin, pesticides, heavy metals, microbiological contaminants, etc.
Economic operators need to send their samples to be tested in Maputo (limited scopes available) or abroad, which translates into the:
*higher costs
*time lost affecting the competitiveness of the Mozambican producers.
Such access to internationally recognized quality infrastructure for the private sector in Mozambique
increases their competitiveness on the international scene through the following benefits:
- Cost saving – the price of the locally available internationally recognized conformity assessment
services (such as testing or certification) will be lower than if those services are purchased abroad. Also
if the services offered locally will be internationally recognized and therefore accepted everywhere that
would eliminate the need for re-testing in the country for which the goods are destined – therefore saving
costs.
- Time saving – as the conformity assessment services can be accessed locally – the time can be saved
– and the results can be obtained much faster – than if such services are purchased abroad (e.g.
samples need to be sent abroad for testing).
- Building trust and credibility – the results of the conformity assessment from an internationally
recognized institution (deemed competent) can add credibility and build trust between the buyer and
the seller, which translated into increased business opportunities.
C.7 Key general challenges affecting export performance of the Mozambican
SMEs
Mozambican SMEs face also some general challenges affecting trading and their export potential according
to current conditions in the country. Among them:
Poor trade financing and investment conditions for most SMEs, difficulties for meeting
financial institutions requirements (insufficiencies on collateral, audited accounts, and
24
business plans) 16. According to the Doing Business Report of the World Bank for Mozambique
(2019)17, “getting credit” is the lowest indicator (scores only 25.0018) affecting the ease of doing
business in the country (scores 55.53). The lack of capital for investment in fixed assets and for
working capital is a critical issue throughout most of the value chains.
Low added value products and markets diversification, predominance of labour intensive
agro-industry processing over the use of more advanced mechanized/ automation and ICT
technologies, low efficiency in the resources use, poor management practices, and
insufficient skilled labour; all impacting on the sector competitiveness and the creation of
more jobs. In 2018 the country ranked 133rd out of 140 in the Global Competitiveness Index report
published by the World Economic Forum19, where the ICT adoption, innovation capabilities and
skills pillars got the lowest scores (26, 27 and 28 respectively).
Poor coordination and integration among different government institutions, agencies and
stakeholders of the value chains, lack of strong regulatory framework for commercialization
and export of some products. Although in the Doing Business Report of the World Bank for
Mozambique (2019), the “starting a business” indicator scores relatively high (67.56), a subnational
report20 prepared also for the country considering all 10 provinces in the country shows some
differences among them, being more difficult to “start a business” in Nampula and Zambezia than
in Maputo. Entrepreneurs in Mozambique must go through many steps involving several agencies
and pay high fees for publishing its articles of association to start a business. On the other hand,
for some sectors the lack of a clear legal framework establishing rules to control products
commercialization creates a climate conducive to illicit activities.
In-country services that could support private sector in improving their capacities and
reaching export market requirements are presently very basic. Existing business associations
in Mozambique are in general limited in resources, and only few of them provide actual and relevant
business development services (BDS) to their members on a frequent basis that means that a
sizable number of SMEs are excluded from access to such services. The largest private
Confederation of Business Associations of Mozambique (CTA) is long established and is
systematically involved in public private dialogue but it does not represent all sectors of economy,
specifically SMEs, youth business associations and women entrepreneur associations. Beyond this
policy advocacy function, CTA provides limited support in terms of private sector trainings and, let
alone, one-to-one business counselling or mentoring to groups of individual entrepreneurs. Other
private sector associations, such as the Chamber of Commerce, Associação Industrial de
Moçambique (AIMO) and SME Business Association (APME) fulfil primarily representative
functions and are limited to organizing events or to be sporadically present in public private sector
dialogue fora.
16 Are Interest Rates a Deterrent to SMEs Growth in Mozambique? (2017) A. Sawaya, S. Bhero. European Journal of Business and Management, ISSN 2222-1905 (Paper), Vol.9, No.29, pp. 33- 41
17 https://www.doingbusiness.org/content/dam/doingBusiness/country/m/mozambique/MOZ.pdf
18 According to World Bank report, an economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance
19 http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf
20 https://www.doingbusiness.org/content/dam/doingBusiness/media/Miscellaneous/SubNational/Doing-Business-in-Mozambique-2019_Eng.pdf
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D. THE PROJECT
D.1. Overall objective, specific objectives, results and activities
1. Background – alignment with PROMOVE Comércio
This project is part of a wider programme called Supporting Trade and Development in Mozambique –
"PROMOVE Comércio" signed between the Government of Mozambique and the European Union. The
period of implementation of the Promove Comércio programme started on 12/06/2019 and ends on
12/06/2024.
Within the PROMOVE Comércio programme UNIDO will be responsible for implementing the present
project called “PROMOVE Comércio – Building Competitiveness for Exports “, covering:
all Results of the Specific Objective 2 and
Result 4 under the Specific Objective 1 (through an interagency agreement with UNCTAD).
TABLE 4: The PROMOVE Comércio Programme versus the PROMOVE Comércio – Building Competitiveness
for Exports
PROMOVE Comércio Programme PROMOVE Comércio – Building Competitiveness for Exports (UNIDO)
Overall objective: Improve trade and the business environment.
Overall objective: Improved trade, competitiveness and business environment in Mozambique for greater market access for the selected value chains (VCs).
Specific objective 2
To increase sustainable market-driven Quality Infrastructure services to support the production of quality products
Results:
5 Good governance and core quality infrastructure services at the institutional level (INNOQ) upgraded to ensure international recognition (UNIDO)
6 Increased technical competences of the conformity assessment service providers (e.g. testing laboratories) and ensuring international recognition (UNIDO)
7 Increased availability and quality of Business Development Services (UNIDO)
Specific objective 1:
1. Increased sustainable market-driven Quality Infrastructure services to support the production of quality products for the selected VCs
Results:
1 Good governance and core quality infrastructure services at the institutional level (INNOQ) upgraded to ensure international recognition
2 Increased technical competences of the conformity assessment service providers and ensuring international recognition as per the needs of the selected VCs with a focus on the provinces of Nampula, Zambezia and Maputo
3 Increased availability and quality of Business Development Services
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Specific objective 1
1. To improve Government coordination and implementation of the EPA and WTO TFA trade facilitation reforms
Results:
1. Reinforced Ministry of Industry and Trade capacity for coordinating, monitoring and implementing obligations and provisions arising from the EPA and WTO TFA
2. Key Customs EPA commitments ready to be adopted and to be made publicly available21
3. Enhanced Government capacity to participate in trade policy decision-making discussed at the joint EU-SADC EPA states meetings
4. Enhanced government knowledge on the legal and institutional framework required to apply EPA trade defense/safeguards articles (UNIDO/UNCTAD)
Specific objective 2:
2. Improved Government coordination and implementation of the EPA trade safeguards
Results:
4 Enhanced government knowledge on the legal and institutional framework required to apply EPA trade safeguards (UNIDO/UNCTAD)
Specific objective 3
Promote EPA trade opportunities among investors
Results:
8. Improved EPA awareness within private sector, NSA, trade promotion agencies
9. Enhanced capacity of business associations to promote EPA trade and business opportunities
10. Enhanced capacity of non-state actors for EPA monitoring and reforms advocacy in view to seizing EPA opportunities
Not under UNIDO’s implementation
Not under UNIDO’s implementation
1. Project’s overall objective (impact)
21 The work plan of customs measures is detailed in the EPA Implementation Plan, some examples of requires measures are: EPA tariff reduction schedules adopted and published, use of export taxes clarified, rules of origin implemented, procedures, fees and charges clarified, follow-up on market access issues.
27
The overall objective of the project “PROMOVE Comércio – Building Competitiveness for Exports” will
be on improvement of trade and business environment for priority value chains (which will be selected
during Inception Phase) with strong potential for regional and global trade, growth and job creation. A
market driven and flexible approach will be embedded in the project interventions such that a number of
value chains can benefit from the project activities and results.
Value addition and transformation of agricultural production has not yet taken off in Mozambique. Therefore,
there is room for private sector to better exploit the opportunities, which could stem from moving up the
value-chains. UNIDO intervention, as part of PROMOVE Comércio, aims to tackle some of the critical
aspects of this development agenda. In particular the project will support specific aspects of trade facilitation
such as trade safeguards, quality infrastructure and improving the business environment, market access
and competitiveness.
2. Specific objective, results, sub-results and activities
Two Specific Objectives will contribute to the achievement of the project’s impact. The first specific objective
is aiming to strengthening the quality infrastructure with a bottom up approach focusing on the needs of
selected value chains as well as availability of QI services also in the provinces. It will also enhance
competitiveness of the private sector to export and to build local capacity at the level of Business
Development Services. The second specific objective (UNCTAD) aims to support MIC and other local
counterparts on safeguard clauses.
SPECIFIC OBJECTIVE 1: INCREASED SUSTAINABLE MARKET-DRIVEN QUALITY INFRASTRUCTURE SERVICES TO SUPPORT THE PRODUCTION OF QUALITY PRODUCTS FOR THE SELECTED VCs
Result 1 Good governance and core quality infrastructure services at the institutional level
(INNOQ) upgraded to ensure international recognition
This result will focus on the strengthening of the core quality infrastructure institution in Mozambique – which
is INNOQ. Robust, strong and service oriented INNOQ is a key element of the businesses environment
enabling Mozambican private sector to benefit from market opportunities (be it regional or international).
This will be achieved through; the promotion of good governance of the Quality Infrastructure – by facilitating
the implementation of the updated National Quality Policy and the upgrading of the regulatory framework
(with particular focus on the priority VC); through strengthening expertise at INNOQ for development and
adoption of industry driven national standards. Lastly INNOQ needs to establish itself as a demand driven
provider of the quality infrastructure services to the private and public sectors. The business approach to
running INNOQ requires the project to facilitate the implementation of the business and marketing strategies
and plans at INNOQ with the focus on a relationship build between INNOQ and private sector players, the
relationship build on trust and business principles.
Sub-result 1.1 Supporting the implementation of the National Quality Policy (NQP) and upgrading
of the regulatory framework
The project will focus on supporting the implementation of the NQP (as per Implementation Plan) and
alignment of the QI horizontal legislation with NQP and international best practices, which is key for QP
successful implementation. A demand driven, well implemented QP is a foundation for the long-term
sustainability of the Quality Infrastructure System in Mozambique and therefore also of the project results.
The project will assess the regulatory gaps and provide the required legal advice on best regulatory practices
as well as will help revise technical regulations (TR) related to the selected priority value chains.
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Result 1 Good governance and core quality infrastructure services at the institutional level (INNOQ) upgraded to ensure international recognition
Sub-result 1.1 Supporting the implementation of the National Quality Policy (NQP) and upgrading of the regulatory framework
List of Activities
National Quality policy:
NQP Implementation Plan is implemented (the monitoring indicators are developed)
Awareness raising actives to promote NQP
Gap analysis of the national horizontal QI legislation
Recommend alignments of the QI legislation with the NQP
Regulatory framework:
Awareness raising and training on “better technical regulations”
Training regulators on Regulatory Impact Assessment
Regulatory gap assessment for Technical Regulations for each of the supported VC
Drafting Technical Regulations related to the VCs (following international best practices and including public consultations).
Sub-result 1.2 Standardization capacity of INNOQ is enhanced
Supporting INNOQ in the area of standardization will be carried out by training INNOQ’s personnel on good
practices in standardization (e.g. so needs of the private sector are well represented and considered), by
establishment of technical committees in selected VCs and adoption of international and/or regional
standards in priority value chains. Domestication of code of practices and self-assessment tools will be
developed and disseminated for products from priority value chains. Promotion of the importance of
standards needs in particular focusing on the value chains of interest for greater competitiveness and market
access. Ensuring participation of INNOQ personnel to international/regional standardization activities will
contribute to keep stakeholders informed on the state of the art solutions and will ensure that they become
active participants of the international standardization community (standard makers and not only standard
takers).
Result 1 Good governance and core quality infrastructure services at the institutional level (INNOQ) upgraded to ensure international recognition
Sub-result 1.2 Standardization capacity of INNOQ is enhanced
List of Activities
Value chain baseline study to identify value chains with strong potential for regional and global trade, growth and job creation with focus on Nampula, Zambezia and Maputo provinces (Inception Phase)
Developing an inventory of national standards for the selected value chains (Inception Phase)
Advisory technical assistance to INNOQ to develop national standards in priority areas as per gaps identified during the Inception Phase;
Training INNOQ personnel in good practices in standardization (as per the ISO Publication on Good Standardization Practices, 2019)
Developing in cooperation with relevant stakeholders simplified code of practices and self-assessments tools for producers in selected VCs
Training producers with focus on Zambezia, Nampula and Maputo provinces on code of practices and self-assessment tools
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Supporting INNOQ to participate in standard-related regional and international fora (e.g. ISO, TCs).
Sub-result 1.3 Sustainability of INNOQ’s operations is increased (incl. creation of the training unit)
The project will boost the training department by strengthening the demand driven training offer and
developing new training manuals with particular focus on addressing needs from the selected VCs. A
detailed list of training modules related to quality will be defined during the initial need assessment (at the
Inception Phase). Furthermore the project will develop training competencies of INNOQ staff and other
relevant stakeholders on product and system certification and food safety standards. The ultimate results
will be not only to train INNOQ staff, but to enable trained staff to train SMEs and producers and implement
these standards in the provinces.
The marketing strategy and plan will aim to raise awareness about INNOQ and quality services in general
but also increase INNOQ’s revenue though conversion of leads into new clients. A special focus and extra
effort will be dedicated to the promotion of INNOQ’s services (e.g. certification, calibration and trainings) in
the provinces of Nampula, Zambezia and Maputo and among the selected value chain actors. As part of
the marketing strategy, activities will be organized to increase networking opportunities with key commercial
partners22. Efforts need to intensify to reach out to a bigger number of private sector players.
The combination of the above mentioned two initiatives will contribute to improve the sustainability of INNOQ
and enable the institute to become a service provider to the private sector of state-of-the-art services in the
area of quality.
Result 1 Good governance and core quality infrastructure services at the institutional level (INNOQ) upgraded to ensure international recognition
Sub-result 1.3 Sustainability of INNOQ’s operations is increased (incl. creation of the training unit)
List of Activities
Training department:
Training need assessment based on INNOQ training department commercial priorities (Inception Phase)
Training of the Trainers
Develop technical training curricula
Drafting training materials and manuals for tutors
Training on QMS as per ISO/IEC standards23
Training staff and auditors on auditing management (ISO 19011: 2018) and food standards (GlobalGap, BRC, HACCP, ISO22000);
Training on risk assessment
Marketing and business strategy:
Revising a Marketing Strategy and Plan in line with National Quality Policy Implementation plan
Promotional activities carried out and materials, tools developed as per Marketing Strategy
22 For now, INNOQ has a MoU signed on cooperation with CTA – which is a good start but efforts need to intensify to reach out to a bigger number of potential clients.
23 ISO/IEC 17021-1, ISO/IEC 17065 and ISO/IEC 17020
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Supporting outreach through social media and e-marketing campaigns
Supporting in the organization of celebration of thematic days (Metrology Day, Standardization Day, etc.) and other events in relation to INNOQ core business activities with strong presence of the private sector
INNOQ will learn from the successful National Standardization Bodies operating in the region, EU and from the group of lusophone countries
Drafting INNOQ’s Business Strategy and Plan.
Result 2 Increased technical competences of the conformity assessment service providers
and ensuring international recognition as per the needs of the selected VCs with a focus on the
provinces of Nampula, Zambezia and Maputo
Reaching a certain quality requested by international and regional markets leads to the associated challenge
of proving conformity with those requirements (related to technical regulations, standards and voluntary and
sustainability standards) in internationally recognized way. To be able to respond to this challenge,
Mozambique must establish efficient certification, testing and calibration mechanisms that enjoy
international recognition.
During the Inception Phase a detailed needs assessment will be conducted (included in the activities of
Sub-Result 1.2) to identify: 1) the priority VCs and sectors with highest export potential; 2) potential demand
for QI services related to those VCs with a focus on the provinces of Nampula, Zambezia and Maputo.
Findings from the Inception Phase will be used to refine the project activities.
Sub-result 2.1 Certification capacity of INNOQ is strengthened with particular focus on the selected
VCs
Support will be given to upgrade INNOQ certification department with the aim to address the gaps in the
provision of the quality services identified for the selected value chains (incl. e.g. food safety management,
product or personnel certification). The project will provide the required support to upgrade INNOQ
certification services to prepare them for the internationally recognized accreditation.
Result 2 Increased technical competences of the conformity assessment service providers and ensuring international recognition as per the needs of the selected VCs with a focus on the provinces of Nampula, Zambezia and Maputo
Sub-result 2.1 Certification capacity of INNOQ is strengthened with particular focus on the selected VCs
List of Activities
Needs assessment and roadmap for strengthening INNOQ’s certification capacities (Inception Phase)
Identifying, mobilize and train a core of competent (registered) local assessors and auditors (based on the needs assessment)
Providing capacity building of staff and improvement of processes for certification department towards accreditation24
Arranging blank audits and support accreditation process.
24 ISO/IEC 17021-1, ISO/IEC 17065, etc.
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Sub-result 2.2 Strengthen the delivery of the legal metrology function and the offer of the calibration
services by INNOQ
In the area of metrology (legal and industrial), support will be given to strengthen capabilities both on
technical and managerial side in view extended or new accreditation scopes relevant for the private sector.
Assistance will include advisory services (coaching), provision of equipment, services (e.g. calibration,
proficiency testing), and technical training.
During an Inception Phase the needs assessment will identify potential demand for services with a focus on
the provinces of Nampula, Zambezia and Maputo. Moreover, in order to ensure a traceability of
measurement across the country it is important to envisage the modality under which metrological services
can be delivered in the provinces (with particular focus on Nampula, Zambezia and Maputo provinces).
Modalities to be considered during the feasibility study (Inception Phase) might involve but should not be
limited to the possible development of another metrology center in the north of the country, developing a
partnership with the University or other laboratory and/or institution or provision of metrological services in
the provinces through mobile service points, etc.
Result 2 Increased technical competences of the conformity assessment service providers and ensuring international recognition as per the needs of the selected VCs with a focus on the provinces of Nampula, Zambezia and Maputo
Sub-result 2.2 Strengthen the delivery of the legal metrology function and the offer of the calibration services by INNOQ
List of Activities
Legal metrology function:
Needs assessment completed (Inception Phase)
Road map for the strengthening of the legal metrology function. Special focus on the selected VCs and provinces (Inception Phase)
Determining the legal metrology and pre-packaging requirements of the VCs for the various potential export markets
Providing capacity building to INNOQ personnel
Procurement of the equipment and related training.
Calibration services:
Conducting an in-depth assessment of the private sector needs and demand for the metrology services in the province of Nampula, Zambezia and Maputo (Inception Phase)
Conduct a feasibility study for different options of how those services can be better delivered to the private and public sector in Nampula, and Zambezia (Inception Phase)
Deliver a roadmap for the strengthening of the calibration function at INNOQ (Inception Phase)
Development of the technical capacity of INNOQ staff. Training and qualify human resources (e.g. staff, auditors, assessors, trainers) following internationally recognized training curricula, ensuring sustainability over time through a train-the-trainers approach. Training can also take the form of secondments and coaching
Assist the alignment of the laboratory management system, operations and document management system with the requirements of ISO 17025:201725
Procurement, installation, training and commissioning of laboratory equipment
Designing an equipment maintenance plan prior to the procurement of equipment and a sustainability plan for the maintenance of the equipment after project end
25 ISO/IEC 17025:2017 - General requirements for the competence of testing and calibration laboratories
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Arrange blank audits and support international accreditation process
INNOQ’s active participation in the international and regional fora (e.g. BIPM, OIML, AFRIMETS26, etc.)
Sub-result 2.3 Increasing testing capacities of laboratories with particular focus on the priority value
chain and the provinces of Nampula, Zambezia and Maputo
The ability of local testing laboratories to provide internationally recognized (accredited) testing results could
bring down the cost of testing, time and complexity needed to obtain results and that will improve the
competitive standing of producers in the selected VCs. To secure this, the project will strengthen capabilities
of selected testing laboratories on both technical and managerial side.
During the Inception Phase an initial assessment of the testing capacities available for the value chains in
the provinces of Nampula, Zambezia and Maputo will be carried out, together with identification of gaps and
a proposed strategy for the establishment of suitable infrastructure for key tests needed by the selected VC.
At present the following laboratories in the Nampula and Zambezia have been identified based on the field
mission findings:
University of Lurio in Nampula
Seeds Laboratory with their regional extensions
LNHAA
Others laboratories may be considered after the inception phase. The selection of the laboratories for the
project assistance will be done based on a set of objective criteria and a report will be presented to the
project Steering Committee for this purpose.
Supported laboratories in Mozambique will be prepared towards accreditation (based on the revised
ISO/IEC 17025:2017) including training, technical assistance for the preparation of the documentation,
expert assistance for method validation and measurement uncertainty, quality control and quality assurance,
equipment procurement, proficiency testing. Project will support the linkages and active participation of the
ALM (Mozambique Laboratory Association) in the regional structures SRLA (SADC Regional Laboratory
Association). The institutional sustainability of the laboratories will be strengthened through training and
facilitated sessions on business principles and cost accounting.
Result 2 Increased technical competences of the conformity assessment service providers and ensuring international recognition as per the needs of the selected VCs with a focus on the provinces of Nampula, Zambezia and Maputo
Sub-result 2.3 Increasing testing capacities of laboratories with particular focus on the priority value chain and the provinces of Nampula, Zambezia and Maputo
List of Activities
Conducting an in-depth assessment of testing services provided in the province of Maputo, Nampula and Zambezia and compare existing capacity in providing these services with industry needs/demand in the selected VCs for sustainability (Inception Phase)
Based on the above assessment identify gaps and draw road map to address those gaps. Testing could cover soil testing, pesticide residue analysis, fertilizer tests, water quality analysis, and end product testing (as per standard), heavy metal contamination, microbiological analysis (Inception Phase)
26 An Intra-African Metrology System - AFRIMETS
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Business Plans for the assisted laboratories formulated
Train and qualify human resources following internationally recognized training curricula, ensuring sustainability over time through a train-the-trainers approach. Secondments and coaching might be also used where appropriate
Assist the alignment of the laboratory management system, operations and document management system with the requirements of ISO 17025:2017
Procurement, installation, training and commissioning of laboratory equipment
Designing an equipment maintenance plan prior to the procurement of equipment and a sustainability plan for the maintenance of the equipment after project end
Provide support to laboratories for calibration, proficiency testing (PT) programs and inter-laboratory comparisons
Organize blank audits and support the international accreditation process
Strengthening the participation and visibility in the regional (SADC Regional Laboratory Association (SRLA)) and international (ILAC) structures to facilitate exchanges of experience.
Result 3 Enhancing capacity of SMEs to comply with export market requirements leading to
business opportunities
Result 3 addresses two groups of economic operators, namely SMEs and Business Development Service
(BDS) providers, under a value chain approach.
A value chains’ assessment study with focus on challenges and opportunities of the major Mozambican
subsectors for exporting to the EU, and establishing a baseline for the formulation of a road map for the
actions on SMEs and BDS providers; the study will be conducted during the Inception Phase.
A selection of SMEs based on the initial value chains’ assessment, on SME demand, and on a number of
criteria which will be defined during the project inception phase, will receive direct tailored coaching and
technical assistance on a pilot basis (to serve as best examples for demonstration effect to other SMEs),
aiming to advise them on how to increase competitiveness, how to undertake quality improvements to adapt
their products and processes to the requirements of the EU market (incl. technical regulations, standards
and voluntary and sustainability standards and practices).
The project will likewise work with selected BDS providers from the private and public sector as well as with
sectoral associations from the selected value chains, to build and upgrade export-oriented BDS to support
the private sector in their efforts to improve their competitiveness and export capacity. This approach will
increase national ownership and sustainability of the results in the long term.
Although the one-to-one coaching and upgrading activities will target selected SMEs with more export
readiness and potential, the private sector as a whole will benefit from spill-over effects of the strengthened
BDS capacities in the country. A broader number of SMEs will receive training on most pressing technical
barriers to trade and export to the EU. To that end, a capacity building programme will be designed and
delivered by international experts and national coached BDS providers and consultants, in the form of
workshops to be conducted in different locations across the country.
Sub-result 3.1 SMEs and BDS providers in those value chains selected after the initial assessment
are identified and committed to participate in the upgrading programme
The aim of this sub-result is to conduct an assessment value chains’ study with focus on challenges and
opportunities of SMEs and BDS providers when exporting to EU considering the following subsectors
exporting to the EU: agro-industries, fisheries and equipment manufacturing.
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This baseline study will be conducted during the inception phase and will provide three main outputs:
a) Comparative value chain analysis on challenges and opportunities for export-market access to the
EU in three subsectors; identification of priority value chains considering the different criteria
mentioned in Section C that the project can provide assistance to; action plan prepared;
b) Establishment of criteria for the selection of SMEs, such as: export readiness and potential, impact
on job creation, value added products, new industry/new product to be exported to the EU, impact
on poverty and diversification of exports, impact on women and youth employment, women/youth-
led SMEs, size of company, financial capacity of company/-ies and financial autonomy, etc. The
criteria will be developed to ensure that the selection of the SMEs reaches SMEs which have the
largest impact on society and which would otherwise be unlikely to be able to purchase such
coaching services themselves;
c) Selection of SMEs working in the identified VCs against the established selection criteria, and
identification of areas of competences that need training/ coaching/ upgrading to increase
competitiveness, and undertake quality improvements to adapt their products and processes to the
requirements of the EU market;
d) Identification of BDS and BDS providers’ gaps that require improvement so the SMEs from the
identified value chains meet the EU market requirements.
The study should provide sufficient evidence and recommendations for the selection of SMEs in specific
value chains to be targeted by the project and classifying them in accordance to their export readiness and
potential and other criteria to be established as mentioned above. Identification of SMEs’ needs for training/
coaching (capacity building, technology and organizational upgrading) according to the existent gaps and
potential increase for export to EU market will be also an output of the study.
At the same time, the study will assess the quality and capacities of BDS to provide trade and export-
oriented assistance to SMEs in the selected subsectors in relation to compliance with market requirements
for the EU; and an action plan to improve BDS capacities will be developed accordingly (including capacity
building, establishment of linkages and synergies with academia, R&D and innovation institutions,
networking for technology transfer, financial services, etc.).
The study will consider also the current challenges and will recommend actions for fostering women
empowerment, decent employment and diminishing environmental impacts within the present project.
Result 3 Enhanced capacity of SMEs to comply with export market requirements leading to business opportunities
Sub-result 3.1 SMEs and BDS providers in value chains with major export-market access potential are identified and committed to participate in the upgrading programme
List of Activities
Conduct a baseline study with focus on challenges and opportunities of SMEs and BDS providers when exporting to EU at the four major export subsectors to EU (extractive industries, agro-industries, fisheries and equipment manufacturing).
Sub-result 3.2 SMEs are assisted towards greater export-market access
The aim of this sub-result is to enhance capacity of SMEs to improve their quality and competitiveness,
which would facilitate their access to the EU market. A selection of SMEs will receive support on a pilot
basis for demonstration effect under this result. The tailored support/coaching for SME will be provided by
international experts with relevant experience on various topics, and could be delivered in cooperation with
the selected BDS providers serving the target value chains (following an on-the-job training approach). A
transparent process to select beneficiary SMEs will be further designed during the inception phase, and
could include a panel of representatives from the participating BDS providers, the MIC, the MASA and
development partners, co-chaired by UNIDO and the EU Delegation. The selected SMEs will participate
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and benefit from the upgrading programme and the technical assistance provided, with a special focus on
competitiveness and quality improvement to adapt their products to the requirements of the EU market.
Although the upgrading activities will target selected SMEs exporting or ready-to-export value added
products in the identified value chains, a wide range of SMEs and producers from all sectors will highly
benefit from spill-over effects of the strengthened BDS capacities in the country. An export-oriented training
programme, in the form of a series of workshops conducted/replicated in different locations across the
country, will be implemented by international experts with the participation of the selected BDS providers
and national consultants, to build capacities among a larger number of local SMEs and entrepreneurs on
quality and export requirement compliance and also business-oriented subjects. Similarly, the project will
establish strategic linkages with financial institutions like GAPI and investors to facilitate SMEs access to
finance.
The rationale of this result is to provide direct support to SMEs and to provide tailored support for SMEs so
as to answer to each one´s specific needs. The tailored support to SMEs will be done on a pilot-basis aiming
at improving SME productivity, competitiveness and export-readiness, to create success stories that inspire
other entrepreneurs in the country. Additional assistance in the form of capacity building, and linkages with
financial institutions will also be provided to build a critical mass of SMEs with export potential, contributing
to the sustainability of the strengthened national Quality Infrastructure.
Activities under this sub-result will seek to:
a) Build capacities among the private sector to improve their export readiness/performance.
An export-oriented training programme for SMEs will be designed and delivered by experts with the
participation of the selected BDS providers (on the job training). The aim will be to address the
most-pressing issues in specific standards, processes and upgrade the quality of their products.
Training topics will be defined during the inception phase study. They might include: EU market
analysis and consumer analysis, required quality management systems, labelling and packaging
requirements, hygiene requirements, resource efficiency use practices and tools, eco-innovative
processes and technologies, and environmental certification. The training programme will be
replicated in several locations across the country, particularly in those areas with a greater presence
of the selected value chains. SMEs access to finance will be facilitated by strengthening linkages
with finance development institutions and private sector investors, like GAPI, European import
promotion agencies and others. A technical workshop will be designed and implemented in different
locations across the country, raising awareness and knowledge among participating SMEs on
access to financing for trade.
b) Assist selected SMEs to realize export opportunities (pilot application). Based on the initial
assessment value chain study, an objective application and selection process for at least 5 to 10
SMEs in identified subsectors with greatest export opportunities will be designed following UNIDO
methodology, including definition of selection panel. Although the methodology for enterprise
eligibility and selection criteria will be refined during the inception phase, it could include, among
others:
enterprise is operating in one of the selected priority value chains; enterprise is operational for the last 3 years; enterprise is financially solvable and meets the criteria of positive financial performance
(a positive net worth for the year under review and for the last financial year); is not a subsidiary of a transnational company, a very large national or regional
industrial group; capacity for employment and exports creation; capacity to produce value added products or commitment to product diversification; gender and youth labor; and commitment to spare/absorb the project supported design expertise.
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additional criteria as mentioned above, including new industry/new product to be exported to the EU, impact on poverty, women/youth-led SMEs, size of company, impact on environment, etc.
the criteria will also be developed to ensure that the selection of the SMEs reaches SMEs which have the largest impact on society and which would otherwise be unlikely to be able to purchase such coaching services themselves.
The selection panel will be defined during the inception phase. It could potentially be composed of
representatives from the relevant BDS providers in the priority value chains, the MIC, the MASA and
development partners, and co-chaired by UNIDO and the EU Delegation in the country. The selection
panel would evaluate the applications received against the eligibility and selection criteria. The final
number of selected SMEs will be defined after the initial screening and assessment of preselected
companies, depending on their size and individual support needs to achieve concrete results in terms
of competitiveness and export capacity.
As part of the tailored one-to-one technical assistance to SMEs, an assessment of the selected SMEs
will be carried out by experts to identify SMEs’ capacities, product export potential, particularly for the
EU market, and needs to meet export-market requirements will be analyzed to identify bottlenecks and
recommend areas of intervention in order for the SME to be able to export. Areas to be assessed may
include: external sources of competitiveness; product markets and positioning; managerial skills and
social aspects; technical capacities and quality; and financial performance. Based on the assessments,
upgrading strategies with priorities and remedial actions for each beneficiary SMEs will be developed
by experts with the participation of the selected BDS providers and national consultants (following an
on-the-job training approach) and agreed with SME management. Best strategies will be selected in
accordance with the comparative advantage of the enterprise and the most cost-effective way to
improve their quality and competitiveness.
Afterwards, specific upgrading plans will be developed by the experts in cooperation with the relevant
BDS and national consultants based on the developed strategies, with required interventions in terms
of quality improvements, but could also include recommendations regarding the following: adoption of
new technologies and practices, introduction of ICT systems and management capacity building. Each
company will receive on-site technical assistance and one-to-one training and coaching tailored to their
needs for the implementation of the actions. The plans will be formulated in a business plan format,
which could also enable SMEs to seek access to necessary finance.
Result 3 Enhanced capacity of SMEs to comply with export market requirements leading to business opportunities
Sub-result 3.2 SMEs are assisted towards greater export-market access
List of Activities
Capacity building among the private sector to improve their export performance:
Deliver export-oriented training programme for SMEs by experts with the participation of BDS providers (on the job training), to address most-pressing issues in specific standards and upgrade the quality of their products.
Assisted selected SMEs to realize export opportunities (pilot application):
Selection of (at least) 5 to 10 SMEs in identified sectors with greatest export opportunities, in accordance with defined enterprise eligibility and selection criteria.
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Assessment of the selected SMEs carried out by experts on: external sources of competitiveness; product markets and positioning; managerial skills and social aspects; technical capacities and quality; and financial performance.
Upgrading strategies with priorities and remedial actions for each beneficiary SMEs will be developed by experts in cooperation with BDS providers and national consultants (following an on-the-job training approach); and agreed with SME management.
Upgrading plan based on the developed strategies, with required interventions in terms of quality improvements, but could also include recommendations regarding the following: adoption of new technologies and practices, introduction of ICT systems and management capacity building.
Sub-result 3.3 Capacity build at BDS providers to increase compliances on quality and conformity
assessment requirements within their network of SMEs
In order to ensure long-term sustainability and replicability of the intervention, a pool of national trainers will
be created, comprising national consultants and staff from the selected BDS providers that can assist SMEs
and producers with export-focused coaching/mentoring support. In accordance with the initial assessment
(to be performed during the inception phase) for the selection of the targeted value chains within the project,
a narrowed selection of most relevant institutional and private stakeholders (e.g. among BAU, CTA, APIEX,
INNOQ the investment society GAPI, INCAJU and other sectoral associations) will be actively involved from
the beginning in the SME upgrading process to gain practical experience and on-the-job training approach
will be adopted to build their capacities, enhancing institutional ownership and thus, over time, gradually
reducing the dependence on project resources.
Activities under this sub-result will seek to:
a) Improve BDS and capacities of national BDS providers related mostly to standards and quality.
Based on the Inception Phase assessment, a capacity building programme for BDS providers through
training and direct involvement in the implementation of upgrading activities under the project, and also
with a Train-the-Trainer Model, will be designed and implemented. This will enable them to better advice
SMEs on how to meet export requirements and assist in establishing linkages with international markets,
particularly the EU market. BDS will be preliminarily assisted in:
o Design of export-oriented training programmes for SMEs and entrepreneurs, addressing
identified gaps on quality and export requirement compliance, and providing advisory
services on access to finance, investment and subcontracts; environmental best practices
applicable to the sector; applicable trade and export regulations; quality management and
compliance with industry specific or export market standards, among others.
o Development or translation of tools and guides.
b) Strengthening BDS providers’ coordination and integration in the targeted value chains for
a conducive business environment facilitating trade. The capacities of the APIEX will be
strengthened to promote exports, and facilitate engagement with BDS at national level aiming to
establish a market-responsive network of BDS providers. This will include training in export
promotion tools and methodologies developed by UNIDO as well as accompanying SMEs
participation in trade fairs, B2B events, and international trade platforms.
Participation in these last actions will pursue fostering strategic alliances between public and private
BDS stakeholders and/or SMEs with local and foreign partners, intermediary organizations and
38
agencies serving the same/similar segments of clients. Linkages with UNIDO’s ITPO Network27 will also
be facilitated. The organization of an international trade fair including technical seminars and B2B
meetings during the second and the fourth year of project implementation will be considered.
Result 3 Enhanced capacity of SMEs to comply with export market requirements leading to business opportunities
Sub-result 3.3 Capacity building at BDS providers to increase compliances on quality and conformity assessment requirements
List of Activities
Improving BDS and capacities of national BDS providers related mostly to standards and quality:
Capacity building programme for BDS providers through training and direct involvement in the implementation of upgrading activities under the project, and also with a Train-the-Trainer Model:
o Design of export-oriented training programmes for SMEs and entrepreneurs, addressing identified gaps on quality and export requirement compliance, and providing advisory services on access to finance, investment and subcontracts; environmental best practices applicable to the sector; applicable trade and export regulations; quality management and compliance with industry specific or export market standards, among others.
o Development or translation of tools and guides
Strengthening BDS providers’ coordination and integration in the targeted value chains for a conducive business environment facilitating trade:
Strengthening the capacities of the APIEX to promote exports, and facilitate engagement with BDS at national level aiming to establish a market-responsive network of BDS providers, and
Support strategic alliances between public and private BDS stakeholders and/or SMEs with local and foreign partners, intermediary organizations and agencies serving the same/similar segments of clients.
SPECIFIC OBJECTIVE 2: IMPROVED GOVERNMENT COORDINATION AND IMPLEMENTATION OF THE EPA TRADE SAFEGUARDS
The main technical assistance activities under this component will address weaknesses in inter-ministerial
coordination, as well the technical knowledge gap pertaining to EPA implementation issues.
For UNCTAD, the technical assistance activities will be directed to build capacity on EPA/WTO compliant
trade defense regime based on the EPA safeguards provisions (Articles 32-38).
Result 4 – Enhanced government knowledge on the legal and institutional framework required to
apply EPA trade defense/safeguards articles
27 https://www.unido.org/investment-and-technology-promotion-offices-itpos
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Sub-result 4.1. WTO-EPA consistent trade remedies regime developed and implemented
This sub-result aims at making a contribution towards Mozambique’s efforts to design and implement a
coherent and best-fit national trade policy that is oriented towards addressing multiple challenges arising
from the SADC-EU EPA safeguard measures and trade defense instruments, as provided for in Part II
Chapter II, articles 32 through article 38.
The EU- SADC Economic Partnership Agreement (EPA) identified in Part II, chapter II, seven (07)
categories of trade defense instruments: Anti-dumping and countervailing measures, Multilateral
safeguards, General bilateral safeguards, Agricultural safeguards, Food security safeguards, BLNS
transitional safeguards and Infant industry protection safeguards.
Under these provisions, EPA parties are expected to administer these safeguards instruments in a WTO
consistent manner.
UNCTAD intervention under this project will create the conditions to build trade safeguard capacity in
Mozambique and enabling it to transpose EPA articles on safeguards in its national trade related legal and
institutional system28.
The main technical assistance activities under this sub-result will address weaknesses in inter-ministerial
coordination, as well the technical knowledge gap pertaining to EPA trade safeguard implementation issues.
These will include the following:
1. Organization of national consultations to collect views on how to organize the process (road map)
leading to the development of a legal and regulatory framework on safeguards, including drafting related
legislation/regulation and the institutional arrangements regarding the enforcement and coordination
frameworks. The consultations will involve the participation of:
o MIC and other relevant sectoral relevant ministries (Economy & Finance; Customs; Sea, Inland
Waters & Fisheries; Mineral Resources & Energy; Health; Gender, Children and Social Welfare;
Land, Environment & Rural Development, and Justice, Agriculture and Rural Development);
o the private sector organizations including: the Confederation of Business Association of
Mozambique (CTA), Investment & Export Promotion Agency (APIEX), the Chamber of
Commerce of Mozambique (CCM);
o Consumer protection associations, environment protection associations, and other relevant
associations
o National Institute of Statistics, Universities and research institutes
o any other relevant entities not represented in the aforementioned organizations (to be identified
and invited in consultation with MIC and UNIDO country office in Maputo).
2. Conducting a comprehensive inventory of existing trade remedies/safeguard measures in the country,
if any, to ensure consistency with EPA safeguard articles;
3. Conducting a series of training courses/workshops for relevant government officials, private sector
organizations (as per the list of potential participants under the first bullet point), economic and trade
research institutions like the Centre of Studies on Regional Integration and SADC Law (CEDIR); and
any other relevant Civil Society entities (to be further identified during implementation and decided with
28 UNCTAD scoping mission to Maputo in February 2019, revealed that due to the lack of human and technical capacity to design and implement such safeguard measures, there is no specific legal framework for trade defense instruments in place in Mozambique and that the latter is not in a position to implement EPA safeguards measures.
40
the MIC) to introduce them to the EPA safeguards provisions and their implication for Mozambique’s
overall trade policy and trading relations. The training sessions, delivered in the format of specialized
workshops and seminars, will introduce participants to the main WTO trade remedies agreements, i.e.
Anti-Dumping, Subsidies and Countervailing Measures, and Safeguards. Linkages with the EPA
safeguard articles will be the focus in the conduct of the training sessions. In this context, trainees will
receive the theoretical and practical learning aspects on the scope, objective and implementation of
these agreements and the EPA articles. The training programme will provide for case studies and
simulation exercises regarding the technical and legal issues involved in the trade defense instruments,
including definition and determination of the cases triggering safeguards measures, initiation of the
necessary procedures including investigations, determination of injury, etc. The modality will be a
“hands-on” approach providing the necessary technical knowledge and skills to the trainees allowing
them to better understand and conceive safeguards measures as part of the trade policy tools and their
intended objective. It is expected that at the end of the training programme trainees would be able to
work towards the establishment of trade defense regime in Mozambique;
4. Training of trainers at Maputo and provincial level will be organized to expand and ensure the
continuity of the training programme so as to develop the local capacity on EPA safeguards, as per the
content of the programme above. To this end, toolkits, including a Training Module on safeguard
issues and literature in the regional and multilateral settings will be prepared;
5. Building and strengthening the capacity of policymakers, trade negotiators and researchers for sound
trade analysis based on the exploitation of various trade and market access (tariff and non-tariff
measures) databases, in particular the UNCTAD TRAINS and UNCTADTstat databases, and also using
analytical tools such as the World Integrated Trade Solution (WITS) to provide support to MIC and other
relevant institutions in Mozambique, in particular, Instituto Nacional de Estatisticas and Customs. The
overall objective is to improve human and institutional capacities to ensure Mozambique’s effective
participation in multilateral, regional and sub-regional trade negotiations. This activity will be delivered
by organizing national workshops to provide training and technical knowledge to policymakers, trade
negotiators and researchers, on trade and market access data including how to collect and analyze
those data.
6. Assisting in the design of a road map/action plan for developing trade safeguards capacity in
Mozambique. The action plan would detail the activities including data and statistics collection and time
frame for delivery.
7. To undertake study tours for information and experience-sharing in selected countries that have
put in place effective safeguards mechanisms to allow targeted government and private sector officials
to benefit from these experiences and best practices in the area of safeguards;
8. Awareness building to enhance the private sector’s capacity to better understand and appreciate what
the EPA safeguard instruments entail. These information and awareness building events will be
targeted to business/ private sector representatives. In addition to the potential participating
organizations mentioned above, any other relevant entities will be identified and invited in consultation
of MIC and UNIDO country office to ensure a more inclusive process. The aim is to raise awareness on
the role of the private sector in the articulation of the country’s legal and institutional frameworks in the
area of trade defense, taking into account the impact on the private sector development and the
implications of the trade defense instruments for the country’s SDGs agenda. The programme will
involve lectures and presentations by trade practitioners and experts in trade defense from the region
and from international institutions who will be invited as resource persons and guest speakers.
Interactive debates involving Q/A sessions will be organized in this context. Specific objectives of these
debates in the form of recommendations would feed the overall efforts and objective of creating
safeguards capacity in the country.
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Result 4 - Enhanced government knowledge on the legal and institutional framework required to apply EPA trade defense/safeguards articles
Sub-result 4.1 WTO-EPA consistent trade remedies regime developed and implemented
List of Activities
Organization of national consultations involving the participation of relevant ministries, public and private entities to collect views on how to organize the process leading to the development of a legal and regulatory framework on safeguards, including drafting a Law on Safeguards and implementing regulations as well as an institutional/ implementation framework (Inception Phase).
Conducting a comprehensive inventory of existing trade remedies/safeguard measures in the country.
Conducting a series of training courses/workshops to concerned government officials, private sector organizations, economic and trade research institutions to introduce them to the EPA safeguards provisions and their implication for Mozambique’s trade policy and trading relations (to tentatively start during Inception Phase).
Training of trainers on the SADC/EU EPA safeguards.
Preparation of toolkits, including a Training Module on the safeguards in the context of SADC/EU EPA.
Assisting in the design of a road map/action plan for developing trade safeguards capacity in Mozambique.
Study tours for information and experience-sharing in other countries.
Assisting in the establishment of an inter-ministerial task force/committee to ensure the necessary coordination and coherence within the government machinery in the area of safeguards.
Information and awareness building events to enhance private sector’s capacity to better understand and appreciate what the EPA safeguard instruments entail, and build legal, regulatory and institutional capacity of the private sector in the use of trade remedies in the context of EPA.
Awareness building events for concerned Civil Society representatives on the importance and implications of the trade defense instruments for the country’s development and trade agenda, taking due account of the SDGs agenda.
D.2. Theory of Change
Annex A summarizes the theory of change and the interrelation between specific objectives and results.
D.3 Beneficiaries
The project will cover a wide range of beneficiaries, both in the private and the public sector. The direct
beneficiary will be SMEs, BDS providers, producers and other actors along the selected VCs. At the
government level, the project will directly benefit the institutions forming part of the QI and the Ministry of
Commerce (MIC). Government and main counterparts will commit to ensuring full counterpart capacity, as
required to achieve the objectives of the project.
The selection of the VCs and therefore of the beneficiaries along those VCs will be coordinated during the
inception phase, ensuring transparency and no-discrimination.
Indirectly the Mozambican economy is expected to benefit through the improved business environment and
competitiveness of the selected value chain, which should lead to increased exports and thereafter
contribute to the economic growth and prosperity of the country. Also, the Mozambican consumers will
benefit from safer and fit for purpose products available on the national market which will be the direct results
of the strengthened national quality infrastructure system.
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The below table summarizes the main target groups and beneficiaries. A detailed stakeholder analysis is
illustrated in Annex D.
TABLE 5: Summary of project main target groups and beneficiaries
Target Groups Benefits from the project
QI Institutions INNOQ, testing and calibration laboratories, Associação de Laboratórios de Moçambique (ALM) and others
Strengthened capacities, systems and core competencies in the area of effective service delivery to the private sector, which will also contribute to their market orientation and financial sustainability.
BDS providers Confederation of Business Associations (CTA); Chamber of Commerce of Mozambique; Associação Industrial de Moçambique, (AIMO); SME Business Association (APME); Investment and Export Promotion Agency (APIEX), Institute for the Promotion of Small and Medium Enterprises (Instituto para Pequenas e Medias Empresas, IPEME), BAUs and others
Strengthened capacities, systems and core competencies in the area of effective service delivery to the private sector, which will also contribute to their market orientation and financial sustainability.
SMEs and other stakeholders along the selected value chains (such as suppliers, producers, retailers, distributors, etc.)
Increased business opportunities and support infrastructure resulting in higher quality products, increased performance and compliance capacity, improved exports and fewer border rejections through products meeting buyers’ technical regulations and international standards, increased performance and market access leading to more revenues. Increased capacity through training, workshops, study tours, etc. and product promotion activities.
Government Ministry of Commerce (MIC)
Enhanced knowledge on the legal and institutional framework required and improved coordination and implementation of trade safeguards.
Consumers
Safer and fit for purpose products available on the national market leading to increase of trust in the Mozambican institutions.
D.4 Coordination and synergies with other ongoing activities/other projects
The following ongoing projects have been identified and listed below. The project will ensure that there is
no overlap in activities and that complementarities are sought and explored for greater impact. The list will
be further updated and refined at the inception phase and all the key development partners will be met to
discuss potential for cooperation, complementarities and agree on coordination.
TABLE 6: Ongoing activities and areas of potential synergies with UNIDO
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Project and
Organization
Thematic intervention
PROMOVE Agribiz
FAO, GIZ and the
International Bank for
Reconstruction and
Development (IBRD) of
the World Bank
Support the development of small-scale sustainable commercial agriculture
and improve the productivity and resilience of small producers through support
services such as financial and rural extension, establish commercial
partnerships with companies to increase the availability of services along the
value chains for employment creation, development and industrialization.
This is part of a comprehensive package of 11th EDF funded programmes29
under the rural development focal sector each addressing different priority
areas (transport, energy, nutrition and biodiversity) working in close
coordination as an integrated rural development approach. This €68 million
action entitled "Improving rural competitiveness in Nampula and Zambézia
provinces - PROMOVE Agribiz" will specifically focus on supporting the
development of small-scale, sustainable commercial agriculture. The overall
objective of the action is to contribute to sustainable, inclusive and broad-
based economic growth and poverty reduction in the context of national food
and nutrition security and climate change. The specific objectives are i) to
improve food and nutrition security and resilience of small-holders through
climate-smart and nutrition-sensitive agriculture development in the provinces
of Nampula and Zambézia; and ii) to enhance rural competitiveness through
improved participation of smallholders through improved participation of
smallholders and MSMEs in economic activities, economic diversification,
value addition, improved access to rural services and improved rural
investment climate in the provinces Nampula and Zambézia.
In order to maximize synergies with the Agri-biz Programme managed by FAO
and GIZ, a joint workshop followed by regular coordination meetings will be
organized to identify synergies that could leverage the impact on SMEs.
ProEcon Programme
BMZ and GIZ
Support the development of the private and financial sectors, both through
enhancing framework conditions, and through forging partnerships on local
initiatives in rural areas.
ProEcon is currently implemented by GIZ in several provinces. On behalf of
the German Federal Ministry for Economic Cooperation and Development
(BMZ), GIZ aims to improve the competitiveness of MSMEs. The GIZ
supported programme is addressing the challenges of the MSME sector within
three intervention areas, applying a multi-level approach: 1) Improving
framework conditions on national and local levels, 2) Supporting local
economic cycles in rural areas and 3) Promoting an inclusive financial sector.
SUSTENTA
Agriculture and
Natural Resources
Landscapes
Management Project
The US $60 mln Agriculture and Natural Resources Landscapes Management
Project aims at integrating rural households into sustainable agriculture and
forest-based value chains in the project area (Nampula and Zambezia, Sofala
and Manica and others) and, in the event of an eligible crisis or emergency,
29 PROMOVE refers to a set of EU-funded programmes with an integrated and geographically focused approach to rural development in the Mozambican provinces of Nampula, Zambezia and Maputo. The overall objective of the rural development focal sector is to foster sustainable, inclusive and broad-based economic growth and sustainably reduce poverty. It does this by a) improving food security and nutrition status and b) enhancing rural competitiveness. The programme has six components of action, namely: PROMOVE Agribiz; PROMOVE Energy; PROMOVE Biodiversity; PROMOVE Transport; PROMOVE Trade; and PROMOVE Nutrition.
44
The World Bank will provide immediate and effective response to said eligible crisis or
emergency.
PROSAVANA
Programme of
Triangular
Cooperation for
Developing
Agriculture in the
Tropical Savannahs
of Mozambique
Ministry of Agriculture
and Food Security of
Mozambique (MASA),
the Japan International
Cooperation Agency
(JICA) and the Brazilian
Cooperation Agency
(ABC)
Improve the livelihood of inhabitants of Nacala Corridor through inclusive and
sustainable agricultural and regional development. Creating new agricultural
development models, taking into account the natural environment and socio-
economic aspects, and seeking market-orientated agricultural/rural/regional
development with a competitive edge.
SPEED+ Programme
USAID
USAID is the main donor supporting trade facilitation through its four-year
SPEED+ Programme. It provides technical assistance since 2016 for
agriculture, trade, business enabling environment, energy, water and
biodiversity. It supports several reforms of the WTO TFA and the AGOA
strategy. Several trade reforms supported are also related to EPA, thus the
present programme would directly complement and coordinate with the USAID
project.
INOVA FTF - Feed the
Future Agricultural
Innovation
USAID
Increase equitable growth and incomes in the agriculture sector in
Mozambique by increasing the competitiveness of selected value chains,
expanding the number of enterprises that can compete and upgrade their
products and services in selected markets, and improving relationships and
linkages between those firms and other market participants throughout the
value chains.
INOVAGRO
Swiss Development
Cooperation (SDC)
Increase the incomes of poor farmers in Northern Mozambique, through ‘pro-
poor’ private sector development and improve farmers’ access to inputs and
markets through local private, public and civil society partners.
PROCAVA
Inclusive Agri-food
Value-chains
Development
Programme
IFAD
Improve the incomes and livelihoods of vulnerable households, smallholder
and emergent farmers, particularly women and youth in an environmentally
sustainable and socially inclusive and equitable manner. Increase the volume
of production, marketing and respective value-addition products of selected
commodities from targeted communities.
The Trade Related
Facility (TRF)
EU
The Trade Related Facility 10th EDF RIP, EUR 2.6 million, approved in 2017 to support complementary aspects of the SADC Trade Protocol and EPA in Mozambique, focusing on:
Supporting the development of an on-line system for e-certificate of origin
45
Strengthening of the TBT national enquiry point and reviewing the national quality policy
Developing veterinary and plant health strategies and strengthening the SPS enquiry point
Enhancing private sector awareness of regional and international quality and standards market requirements
Development of a legal framework on trade remedies
Develop strategies for cotton-textile sector and forestry-wood sector value-chains.
ACAMOZ - Support to
the cashew nut value
chain in Mozambique
French Development
Agency
The initiative aims to boost INCAJU (which is the state regulation agency for
cashew nuts responsible for policy setting, definition of strategies and
coordination of cashew industry) to better integrate the cashew value chain
into the international market through, inter alia, the provision of reliable and
transparent market information. INCAJU is called to ensure the management
of the sector at the national level, notably through the strengthening of market
information systems to a wide audience in the three Northern provinces of the
country: Zambezia, Nampula and Cabo Delgado.
The Private Sector Working Group for donor coordination, chaired by Norway, is the main forum for
dialogue on business environment issues amongst donors, government, private sector operators and civil
society. One of its subgroups, the Trade Sub-Committee, co-chaired by the EU and USAID, brings together
government, donors and private sector operators and aims at integrating trade into national development
policies, coordinating trade partners and seizing opportunities of trade.
D.5 Sustainability strategy
The project has been designed to ensure the sustainability of the intervention in the target value chains.
The Project is fully integrated into the existing national and regional trade priorities and in line with the
strategic development of the private sector in Mozambique.
Sustainability is considered along the project life cycle and built on these areas of intervention:
1) Responding to the demand and private sector needs: the project is designed in close collaboration
with country stakeholders and is demand-driven.
2) Ensuring national leadership and ownership: close collaboration with the government coordinating
agency ensures that project initiatives, lessons and best practices easily become focal areas for
government to build on in their future plans and programmes.
3) Ensuring multi-stakeholder participation and consultation: The project will foster a high degree of
participation and engaging stakeholders from both public and private sector will ensure high-level
support and a strong sense of ownership. Regular Steering Committee meetings will be conducted to
assess progress, identify potential risks and determine the strategic direction of the project.
4) Developing local expertise (through the Training of the Trainer approach) with the adequate
knowledge and experience and transferring the knowhow and technical expertise to the local institutions
and experts that will support the NQIS during and after the project has ended. Where possible, it will
mitigate the impact of employee rotation, thus contributing to sustainability of outcomes.
5) Business principles will be introduced: When working with INNOQ’s and laboratories training on
business plans management and operations will be ensured.
46
6) Establishing agreements and linkages with BDS providers, SMEs and other VC members and other
institutions. It will lead to overall effectiveness, enhancing competitiveness and more sustainable
impact.
An appropriate sustainability strategy will be designed so the assisted organizations will be able to maintain
and to improve their compliance capacity and performance when the projects will come to their end. This
strategy will be designed during the Inception Phase of the project. Sustainability issues will be considered
in the agenda of the SC meetings.
D.6 Risk management
Risks that could jeopardize the implementation of the project have been identified and are detailed in the
below table (listed by type and relevance), together with the proposed actions to mitigate them.
TABLE 7: Risk management and mitigation measures
Risk Probabi
lity
Impact
to the
project
Mitigation measures
PROJECT IMPLEMENTATION
Lack of ownership and
commitment from key project
stakeholders and
beneficiaries (BDS, SME’s,
QI, etc.)
Medium High This risk will be mitigated by: - The project design is based on the real needs
of the key project stakeholders and beneficiaries.
- The key project stakeholders and beneficiaries are involved and included into the project design and implementation process.
- The SC will oversee and monitor the work and performance of the project and identify challenges early on and propose appropriate mitigation measures.
Low absorption capacity of
the key project counterparts
and/or limited budgetary
resources on the side of the
counterpart which might
delay project activities
Medium High Clear and timely identification of the financial and
capacity constraints during Inception Phase.
Project work plan will be revised accordingly to
accommodate the identified constraints. Cost
effective and affordable solutions will be proposed
in the case of the budgetary challenges.
High turn-over of skill and
competent staff trained by
the project as competent and
skilled staff might leave the
supported institutions. This
might also lead to limited
availability of counterpart
staff to participate in the
project activities.
Medium High Continuous training (train-the-trainers focus) and
skill upgrading will focus on young experts and
professionals and newcomers in order to achieve
a sustainable critical mass of resources.
Awareness to SMEs and institutions on the
importance of know-how and intellectual capital
through training and retaining staff.
Coordination with similar
projects at national and
provincial levels.
Low Medium During inception phase the coordination with other
donors /projects will be ensured.
POLITICAL
47
Changes in governmental
administration, policies and
regulations affecting the NQI,
the business environment
and the selected VCs
Medium High Maintain strong coordination with the respective
Government entities at national and provincial
levels. Considering changes in the activity plan to
reduce the number of critical activities during
electoral/government change periods and
implement the most critical ones during periods of
stability.
SECURITY
Security situation
undermined by violent
extremism threats/concerns
(especially in the provinces of
Cabo Delgado and Nampula)
Medium High Regularly monitor security alerts for updates
before travelling to the areas and follow the advice
of the local authorities and UNDSS.
ENVIRONMENTAL
External shocks as floods
and draughts displace
population and reduce
agricultural production.
Medium Medium Promote soil and water conservation, and
irrigation development to mitigate minor draughts.
Considering changes in the activity plan to reduce
the number of critical activities during external
shocks periods.
D.7 Gender mainstreaming
The importance of gender equality and women’s empowerment, particularly women’s economic empowerment, lies at the core of economic development. Enhancing the role of women as drivers of poverty reduction, promoting female investors and entrepreneurs, and recognizing the link between gender equality and economic prosperity all promote inclusive and sustainable industrialization. Gender mainstreaming is key to addressing gender inequalities in a cross-cutting way thus ensuring that gender perspectives are integrated into all activities and progress.
The project will follow the gender mainstreaming strategy and gender equality and empowerment of women objectives developed by UNIDO in its Gender Mainstreaming guide for Trade Capacity-Building projects (2015). This strategy and Gender Equality and the Empowerment of Women (GEEW) objectives are based on the following three dimensions:
• Resource: equal access to resources and training opportunities; • Rights: quality infrastructure-related policy and legislative environments and service delivery are not
conducive to discrimination against women; • Voice: promotion of gender-balance within the work environment.
Also Mozambique is committed to promoting Gender Equality and the Empowerment of Women (GEEW) and INNOQ, the project’s main counterpart, is a signatory to the Gender Responsive Standards Declaration30.
The project activities will be designed to tackle and address gender-related issues in the area of quality and private sector development. The overarching goal of eliminating or reducing gender inequality in project activities and specific objectives will been followed in view of greater sustainability and effective development. A gender strategy with tools to mainstream gender into project activities will be developed during the Inception Phase. In addition to the gender strategy that will be developed during the Inception
30 United Nations Economic Commission for Europe, UNECE, (2019), Declaration for Gender Responsive Standards and Standards Development. Available at: (http://www.unece.org/tradewelcome/tradewp6/thematic-areas/gender-initiative/gender-declaration.html
48
Phase, the following steps will be followed to promote gender equality and empowerment of women within the framework of the project:
1. Gender disaggregated data collection:
Disaggregated data on the activities of the project, training participants in particular, will be collected.
2. Facilitate and promote equal access to project activities of women and men:
Training will be advertised through networks and media accessed by women and men.
In the recruitment process, female candidates will be particularly encouraged to apply. For candidates with the same technical qualification, preference will be given to women.
Timing and location of the trainings will be scheduled to be appropriate to women and men’s needs.
Trainers nominated for training and experts involved in the programme will be both men and women and sensitive to the specific needs of female trainees/entrepreneurs.
Overall, the project will seek to promote gender parity in project activities. This will include, but not be limited to, pursuing gender balance in technical committees; capacity building activities for INNOQ staff; and panels of representatives for the selection of SMEs. Furthermore, the selection criteria for SMEs will be developed in a gender-sensitive manner.
3. Promote the role of women in economic activities:
Relevant needs and capacity assessments will be conducted with a view to developing gender sensitive responses, ultimately promoting a strengthened role of women in economic activities.
SME counsellors to be trained will be made sensitive to specific needs of women trainees/entrepreneurs.
In activities supporting standards development gender-responsiveness and gender-sensitive development processes will be considered as ‘good practices in standardization’31.
During the inception phase it will be identified how to integrate the gender dimension (gender-responsiveness and gender-sensitivity as well as inclusion of gender indicators or criteria) in standards development processes as good practices in standardization in the project activities.
4. Awareness raising on gender equality and empowerment of women:
Preparation and distribution of promotional materials, with a particular emphasis on creating a positive image of female entrepreneurship will be assured.
Organization of a Gender workshop will be aimed at.
Preparation, translation and adaption to local needs of Guide on Gender Mainstreaming in Trade Capacity Building will be aimed at.
The Visibility Strategy foresees that equal representation in visual materials and/or case studies and gender-sensitive language where applicable will be taken into consideration.
For awareness raising events and workshops women guest-speakers will be considered.
In the development of success stories the project will seek to include successful women stories as a source of inspiration to others.
5. Communicate and collaborate with gender focal points at the Ministries and, if possible, with NGOs.
31 UNIDO and WAQSP (2019), Gender & Standards. Available at: https://www.unido.org/sites/default/files/files/2019-03/UNIDO_Flyer_Standardization.pdf
49
By undertaking these actions, the project will aim to raise awareness about gender differences, enhance skills of women and provide equal opportunities for men and women within the framework of the project.
D.8 Environmental and social assessment
The project will also consider other cross-cutting themes, such as environmental management which is a
part of sustainable development and will be considered in project activities as a transversal issue.
In line with UNIDO Environmental and Social Safeguards Policies and Procedures (ESSPP), an
Environmental and Social screening has been conducted and the project has been classified as category
‘’C’’; as its main objective is to improve the business environment and trade competitiveness in
Mozambique. Environmental and Social consideration will be duly integrated throughout the technical
trainings, advisory support as well as the procurement activities. In addition, all laboratory operations will
follow international standard- ISO/IEC 17025:2017. Moreover, based on the detailed needs assessment
that is planned to be carried out during the inception phase, environmental and social risks are to be closely
monitored and the project may need to be re-categorized, depending on the type of technologies that will
be introduced.
E. INPUTS
E.1 Counterpart Inputs
The contribution of the counterpart institutions and of beneficiaries will cover the following specific items:
Ensure that sufficient staff of an appropriate professional level and seniority (experience) within their organizations is made available for project activities and consultations where appropriate; ensure continuity of personnel during the project. Any change in the staff assigned to the project should be promptly notified to UNIDO
The respective counterpart involved in the project will nominate participants to meetings, workshops and other events held inside the country as part of the normal functioning of its organisation
Local government officials or counterpart organization should provide local administrative support for organizing meetings and training programmes
Provide support and facilitate the processing of any legal documents or decrees to be produced under the project.
INNOQ will provide office space for the Chief Technical Advisor of the QI component. INNOQ will also give project access to their training rooms and facilities based on their availability.
E.2 UNIDO Inputs
UNIDO will provide know-how, expertise, facilities and staff time, in general terms:
Identification and recruitment of the International Chief Technical Advisor and setting up of the PMU for the identification and recruitment of staff and procurements required by the project at national and international level;
Identification, preparation of Job Description(s) of all the international and/or regional/national experts and consultants required for the project.
Identification of suppliers (national/international), preparation of Terms of Reference(s) and Technical Specification(s), and procurement of services and equipment (e.g. metrology and test equipment as envisaged);
Preparation and arrangement for training(s);
Project monitoring and evaluation as required;
UNIDO methodologies, resource materials and platforms as required.
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F. BUDGET
Budget: 6,500,000 EUR
UNIDO Contribution: 50,000 EUR
TOTAL Budget: 6,550,000 EUR
The budget breakdown is reflected on Annex III (Budget of the Action).
G. PROJECT MANAGEMENT
G.1 Project governance and management
The main national counterpart for this project is the MIC. The project will be implemented by UNIDO and
UNIDO will have the overall project management and coordination responsibility. UNCTAD has been pre-
identified as an implementing partner for Result 4; for this purpose, UNIDO will establish an inter-agency
agreement with UNCTAD32.
Governance Structure
At the topmost level of the governance structure, a Steering Committee (SC) will be created to provide
strategic guidance and monitoring of progress towards established objectives and outputs. Its tasks will
include, but will not be limited to:
Taking strategic decisions, which may include approval of the inception report as the basis for the
project implementation, monitoring and evaluation.
Setting and assessing project milestones, which may include changes or amendments to timeline
(implementation of activities), objectives or key beneficiaries.
Discussing relevant issues regarding the implementation of the project.
Approving the semi-annual work plan for the project and formulate recommendations where
necessary.
Approving the progress reports and formulating recommendations where necessary.
Review and follow-up on the visibility plan.
The Ministry of Industry and Commerce (MIC) of Mozambique will act as the main government counterpart facilitating communication and coordination among the various line Ministries.
The SC will be co-chaired by a senior government official and the EU Delegation. The core members of the
Steering Committee are the MIC, INNOQ, UNIDO and EU Delegation, final decision during the Steering
Committee will be agreed by MIC, INNOQ and EU Delegation.SC participants will also include
representatives from the principal line Ministries and other relevant public institutions, the private sector,
UNCTAD, and others may be invited at the initiate of the SC co-chairs. The terms of reference and the exact
composition of the Steering Committee will be decided during the project inception. The SC will meet
officially twice a year in Mozambique. UNIDO will ensure the functioning of the Secretariat of the SC.
Project Management UNIDO – as the implementing agency will be responsible for the overall implementation, monitoring and reporting of this project according to the established UNIDO rules and regulations. The department of Trade, Innovation and Investment (TII) of UNIDO through the Standards and Quality Infrastructure (SQI) division
32 The finalization and signature of the agreement between UNIDO and UNCTAD will depend on internal administrative processes and procedures on both sides.
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of UNIDO will fulfil this responsibility by appointing an Industrial Development Officer (IDO) as Lead Project Manager (PM) who will be in charge of overseeing the overall implementation of the project, as well as by mobilizing the required services of the related technical, administrative and financial departments at UNIDO Headquarters and the UNIDO field offices. Project management at UNIDO HQ:
Lead Project Manager, UNIDO/SQI33 (Results 1 and 2)
Project Manager, UNIDO/BCI34 (Result 3)
Project Manager, UNCTAD35 (Result 4)
Associate Industrial Development Officer The UNIDO Lead Project Manager (PM) will work in coordination with a Project Manager (PM) from UNIDO/BCI (Business, Cluster and Innovation Division) to coordinate Result 3 and with a Project Manager (PM) from UNCTAD’s Trade Negotiations and Commercial Diplomacy Branch to coordinate Result 4. All the PMs will be supported by an Associate Industrial Development Officer (fully funded by the project). Additionally, a Project Management Unit (PMU) will be set up in Mozambique. Project Management Unit (PMU) in the field will consist of:
• National Project Coordinator (NPC) • National Administrative Assistant (NAA) • Communication and Visibility National Expert • Driver A Technical Support Team (TST) will also be put in place and will consist out of:
Chief Technical Advisor (CTA) for QI (Results 1 and 2)
Chief Technical Advisor (CTA) for SMEs (Result 3)
Staff (% of working
time, duration) Tasks and responsibilities
Location
Lead Project Manager, UNIDO/SQI (Results 1 and 2) 22%, 4 years
Responsible for the overall strategic steering and managerial
supervision of the project, including contract management with
the European Commission and implementing partners. The
project manager also provides alignment of technical inputs
related to the Quality Infrastructure with international best
practices and UNIDO methodologies. Clearance of technical
reports. His/her input will be charged as direct cost to the project
at 22% of his/her working time.
UNIDO HQ,
Vienna
Project Manager, UNIDO/BCI (Result 3) 5%, 4 years
A UNIDO staff member from the Business, Cluster and
Innovation (BCI) division, responsible for the coordination and
implementation of Result 3. Input will be charged as direct cost
to the project at 5% of his/her working time.
UNIDO HQ,
Vienna
33 Standards and Quality Infrastructure (SQI) Division Department of Trade, Investment and Innovation at UNIDO, https://tii.unido.org/
34 Business Environment, Cluster and Innovation (BCI) Division, Department of Trade, Investment and Innovation at UNIDO, https://tii.unido.org/section/innovation
35 Trade Negotiations and Commercial Diplomacy Branch, Division on International Trade in Goods and Services, and Commodities (DITC) at UNCTAD, https://unctad.org/en/Pages/DITC/TNCD/Trade-Negotiations-and-Commercial-Diplomacy-.aspx
52
Associate Industrial
Development
Officer (L2)
100%, 4 years
Support the PMs in the coordination and efficient implementation
of the project to achieve smooth operations and coherence in the
execution and delivery of the project; being responsible for
technical follow-up on work plans, expenditures, and reports;
review reports, support the preparation of technical and financial
reports, provide inputs to technical reports and assessments
undertaken on selected value chains. Liaise with all centralized
support services for organization of activities according to donor
specifications and UNIDO requirements; facilitate
requisitions/purchase orders and assist in ensuring the technical
evaluation of received offers according to UNIDO rules and
regulations and perform project related tasks in the enterprise
resource planning (ERP) system; facilitate interactions with
internal and external services; ensure audit compliance for the
project documentation and assist the periodical project
audit/evaluation exercises. In consultation with the CTAs and
National Project Coordinator contribute to the drafting of
timeframes and elaboration of Terms of References (TORs) for
international experts, trainings, fellowships, subcontracts and
equipment purchases based on approved Annual Work Plans;
assist in preparation of job descriptions and identification of
international and national experts and consultants; assist in
monitoring and following-up the work and findings of international
consultants and subcontracts. Contribute to the preparation of
promotional material in order to create awareness, visibility, and
publicize project results.
UNIDO HQ,
Vienna
Chief Technical
Advisor on QI
100%, 4 years
Senior project advisor on Quality Infrastructure (QI); ensure the
technical coordination of activities for the entire UNIDO
component on QI (Result 1 and 2); supervision and management
of the PMU, day-to-day implementation of this Action. Manage
the project at national level, including financial management, in
conjunction with the Associate Industrial Development Officer at
HQ. Prepare global planning (action plan/roadmap) of the project
and its deployment in operational plans (annual, semi-annual and
quarterly). Coordinate the activities of the project with the
appropriate implication of the private sector, the ministries and
the relevant institutions, as well as the adequate links with other
projects, where applicable. Ensure commitment and involvement
of the counterparts and beneficiaries, and synergy between the
relevant organizations and institutions at the national level.
Design, coordinate and facilitate the missions of national and
international experts and subcontracts at the national level.
Ensure good communication flow and coordination with UNIDO
HQ and with all stakeholders.
PMU,
Maputo
Based at
INNOQ
Chief Technical
Advisor on SMEs
Ensure the technical coordination of activities for the UNIDO
component on SMEs (Result 3) and day-to-day implementation
of these activities. For this component prepare action
PMU,
Maputo
53
50%, 4 years plan/roadmap and financial planning in coordination with the CTA
on QI and the Associate Industrial Development Officer at HQ.
Coordinate activities, ensure commitment and involvement of the
relevant counterparts and beneficiaries, and synergy between
the relevant organizations and institutions at the national level.
Design, coordinate and facilitate the missions of national and
international experts and subcontracts at the national level.
Ensure good communication flow and coordination with UNIDO
HQ and with all stakeholders.
National Project
Coordinator (NPC)
100%, 4 years
Assist the CTAs in the effective coordination of the project.
Facilitate the coordination of operations from the various
technical and organizational sides (including visibility activities).
Ensure the implementation and periodical follow-up of actions
according to the work plans/roadmaps. Collect technical inputs
from the CTAs for the drafting and finalization of technical
specifications (TS), Terms of Reference (ToRs) and
recommendations for the procurement of goods and services,
recruitment of international experts, trainings, fellowships,
subcontracts and equipment on approved Annual Work Plans
following UNIDO rules and the recommendation scheme for
further submission to HQ; prepare and finalize job descriptions,
and contribute to the identification of international and national
experts and consultants. Coordinate the missions of international
and national experts and subcontractors, facilitate mission
schedule and travel within country and monitor the performance.
Monitor the activities at country level and follow-up the work and
findings of international consultants and subcontracts. Assist the
CTAs on partnership and synergy matters. Manage the
secretariat of the SC meetings that includes coordination of the
periodical meetings, among other functions. Coordinate and
organize in-country and out-of-country training and events.
PMU,
Maputo
National
Administrative
Assistant
100%, 4 years
Assist in all matters related to office management at field office
level, organization of national events, local procurement of goods
and services. Assist the National Project Coordinator in
managing the secretariat of the SC meetings, including
coordination of the periodical meetings, drafting minutes among
other functions. Provide administrative and logistics support in
the organization of experts’ missions and in-country and out-of-
country training and events.
PMU,
Maputo
National
Communication
and Visibility Expert
100%, 4 years
Deliver related technical support in the effective and timely
implementation of the Communication and visibility plan including
outreach activities, preparation of promotional material in order to
create awareness, visibility, and publicize project results in
coordination with the PMU and HQ.
PMU,
Maputo
Short-term Experts
National and
International
Technical
Experts
National and International experts will be
identified to support in achieving the technical
project activities. UNIDO will seek to hire
national experts where possible.
Missions to
Mozambique
54
Administrative
support
services
Directly attributable administrative support
services that are required for the
implementation of the project such as;
Finance, Human Resources, Procurement and
Logistics.
Provided by
HQ and field
office
personnel
FIGURE 5 UNIDO’S PROJECT MANAGEMENT UNIT STRUCTURE
The PMU will be in charge of the project day-to-day implementation, management, coordination and
operations. An important function of the PMU will be the outreach, communication and development of
working relations with the project stakeholders. Furthermore, the PMU will also house any additional short-
term experts that will be recruited by the implementing agencies UNIDO and UNCTAD under the
implementation of specific sub-results.
The TST will be providing technical support to project implementation.
In order to house the dedicated PMU, a project office will be set up ensuring the required facilities, equipment and services for the implementation of the activities. The nature of the project will require frequent travels in and outside Maputo and to the districts of Nampula and Zambezia, possibly to other districts as well. It is therefore envisaged to make provisions for local transportation under this project. During the inception phase the most cost-effective options for local travel (e.g. purchase of a vehicle, leasing contract with local rental companies) will be reviewed and necessary action taken.
H. RBM code and thematic area code
RBM codes: GC2 Advanced Economic Competitiveness GC21 Investment, Technology and SME Development GC22 Competitive Trade Capacities and Corporate Responsibility
55
Thematic area code: TCB
I. VISIBILITY
Communication and visibility will follow the guidelines established by EU and will be coordinated between
UNIDO and the PMU. Communication guidelines and a communication plan will be prepared at the
beginning of project implementation (within the first three months), and will include: (i) visual guidelines
(logo, graphical elements and key messages); (ii) relevant communication messages (lemmas); (iii) clear
functions and responsibilities; (iv) communication objectives; (v) identification of relevant target audiences;
(vi) identification of suitable channels to reach them. If needed, the communication plan may be reviewed
and updated during project implementation, to better reach the selected target audiences.
The project will produce and disseminate promotional material that will be developed in coordination and
will be in line with the project visual identity. Equal representation in visual materials and/or case studies
and gender-sensitive language where applicable will be taken into consideration.
The Communication and Visibility Plan is reflected on Annex VI. This will be further refined during the
inception phase.
J. INCEPTION PHASE
At the onset of the project, an inception phase of 6 months is envisaged which aims at conducting studies,
analysis and interviews with regard to the identification of the target value chains for the demand driven
project intervention. The end result of the Inception Phase will be an Inception Report with refined project
activities, log frame, budget and work plan as per the Inception Phase findings.
During the Inception phase the PMU and TST will be set up (recruitments finalized), offices will be
operational and Steering Committee will be put in place.
The expected results of the inception phase include:
TABLE 8: Main indicative activities and outputs of the Inception Phase
Indicative activities Achievement
TECHNICAL ACTIVITIES
Specific Objective 1, Result 1
Identify value chains with strong potential for regional and global trade, growth and job creation with focus on Nampula, Zambezia and Maputo provinces.
Value chains selected.
Inventory of national standards for the selected value chains carried out.
Inventory developed
Training needs assessed based on INNOQ training department commercial priorities and roadmap developed.
Training needs assessed and action plan developed
Specific Objective 1, Result 2
Needs assessed and roadmap developed for strengthening of INNOQ’s certification capacities.
Certification capacities needs assessed and action plan developed
Needs assessment, feasibility study and roadmap developed of legal metrology and calibration services required in the selected provinces versus needs of the selected VCs.
Needs assessment and action plan developed per area
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In-depth assessment of testing services provided in the selected provinces and compare existing capacity in providing these services with industry needs in the selected VCs, identify gaps and develop roadmap.
Needs assessment and action plan developed per area
Specific Objective 1, Result 3
Baseline study with focus on challenges and opportunities of SMEs and BDS providers when exporting to the EU at the four major export subsectors to EU (agro-industries, fisheries and equipment manufacturing).
Baseline assessment conducted and action plan developed
Specific Objective 2, Result 4
Organization of national consultations involving the participation of relevant ministries, public and private entities to collect views on how to organize the process leading to the development of a legal and regulatory framework on safeguards, including drafting a Law on Safeguards and implementing regulations as well as an institutional/ implementation framework.
National consultations conducted
Conducting a series of training courses/workshops to concerned government officials, private sector organizations including lawyers, economic and trade research institutions; and any other relevant Civil Society entities (to be decided with the MIC) to introduce them to the EPA safeguards provisions and their implication for Mozambique’s overall trade policy and trading relations.
Training courses/workshops initiated
MANAGERIAL / OPERATIONAL ACTIVITIES
Set up PMU and TST; purchase office equipment as required, recruitment of staff and set up of project offices.
PMU constituted and equipped incl. project office in place and operational
Inception report ready and submitted for the Steering Committee approval. Inception Report finalized and approved.
Project launching event organized. Event takes place. Stakeholders informed and committed
Inter-Agency Agreement (IAA) between UNIDO and UNCTAD for subcontracting of Result 4.
IAA developed and approved by both agencies
Finalization and operationalization of project governance structure (i.e. preparation of the terms of reference of the project Steering Committee, including its composition, roles and responsibilities).
SC Terms of Reference and SC constituted
Design tools and templates for project reporting and monitoring. Project processes in place
Fine-tune and revision of Communication and Visibility Plan. Communication and Visibility Plan and Strategy in place.
During this phase, data will be compiled to assess the gender baseline in the selected VCs. Targets for
women’s participation in training activities will be set following the collection of baseline data during the
inception phase. This will be done in cooperation with the respective focal points, which will then serve to
better identify targets related to gender. It will also be identified how to integrate the gender dimension
(gender-responsiveness and gender-sensitivity as well as inclusion of gender indicators or criteria) in
standards development processes as good practices in standardization in the project activities36.
36 UNIDO and WAQSP (2019), Gender & Standards. Available at: https://www.unido.org/sites/default/files/files/2019-03/UNIDO_Flyer_Standardization.pdf
57
K. MONITORING, REPORTING AND EVALUATION
Monitoring
The project will establish a Result-Based Monitoring (RBM) mechanism and will also consider
implementation monitoring, to ensure timely identification of implementation challenges and provide support
in addressing them. Thus, monitoring will assess progress towards timely achieving expected results, both
in terms of quality and quantity, throughout the project cycle. It will provide the main stakeholders with early
indications of progress towards the achievement of project outcomes and outputs and/or problem areas that
need to be addressed.
A set of objectively verifiable indicators (OVI’s) have been identified in the logical framework. Baselines and
targets will be established during the inception phase, taking into consideration the information collected
through the in-depth assessments, and the log-frame revised and validated.
The day to day monitoring will be done by the National Project Coordinator (NPC) in the field. Based on the
reports from the field, HQ will monitor project activities on a continual basis to ensure that activities occur
as planned and remedial steps are taken as necessary.
Reporting
Progress Reports will be prepared bi-annually (including narrative and updated timelines of implementation)
in time for the SC meetings. The Progress Reports will also include a more detailed schedule of foreseen
activities for at least the next six month period. An inception report will be prepared at the end of the inception
phase. The inception report and progress reports will be presented by UNIDO at the Steering Committees.
A final report will be prepared and submitted once the project has ended, as determined by the terms of the
delegation agreement. The reports will be prepared in a standardized template designed by UNIDO,
reviewed by MIC and INNOQ, and final approval by the EU.
Progress reports should be clear, and clearly report on results achieved, reports must remain within a page
limit of 45 pages for the main text/key information, and other supporting/additional information in annexes.
The language of the reports will be English.
Independent evaluation
A mid-term review is planned at the end of the second year of implementation. The main objective is to
inform and guide the second half of the project’s implementation phase. A final evaluation is foreseen after
completion of the project. The mid-term review and final evaluation will be managed directly by the EU
Delegation, and will require the cooperation of project partners and stakeholders.
L. LEGAL CONTEXT
“The Government of the Republic of Mozambique agrees to apply to the present project, mutatis mutandis,
the provisions of the Standard Basic Assistance Agreement between the United Nations Development
Programme and the Government, signed and entered into force on 15 September 1976”.
58
ANNEX A- THEORY OF CHANGE
59
ANNEX B- PROJECT LOGICAL FRAMEWORK MATRIX
Intervention logic Baselines Objectively verifiable indicators of
achievement Sources of verification Assumptions
Overall objective (strategic rationale)
Improved trade, competitiveness
and business environment in
Mozambique for greater market
access for the selected value
chains (VCs)
During
inception
phase
OVI 1 – Increase in trade in targeted
Value Chains (overall, EU)
OVI2 – % in decrease in EU border
rejections for the targeted VCs
OVI3 – Improved market access as
perceived by the target VCs stakeholders
Baseline study on trade flows
(internal, regional, international)
in selected VCs
The Observatory of Economic
Complexity (OEC)
Rejection analysis
TradeCom
Eurostat
Political, environmental and
macroeconomic stability
Government commitment and
cooperation
Stable and fully operational
public administration after the
elections in 2019
Specific objectives (why this project)
SPECIFIC OBJECTIVE 1
Increased sustainable market-
driven Quality Infrastructure
services to support the production
of quality products for the selected
VCs
During
inception
phase
OVI4 – # of quality schemes offered to
economic operators
OVI5 – # of accreditation ready services
available to priority value chains
OVI6 – # of certificates issued by
institutions that received support under
the project
Inception baseline, mid-term and
final reports
Project reporting, INNOQ Annual
report, surveys
Surveys/questionnaires
No major shock impacts on the
economy
Government is committed to
enhancing quality and providing
necessary resources (human and
financial)
Commitment from INNOQ and
other laboratories in the other
60
OVI7 - # of value chain stakeholders
that are aware of the compliance
requirements for market access (sex-
disaggregated data will be collected)
Testing reports from assisted
laboratories
provinces to increase testing and
measurement capacity
Successful Cooperation with GIZ
and FAO in charge of
implementing Agribiz programme
SPECIFIC OBJECTIVE 2
Improved Government
coordination and implementation
of the EPA trade safeguards
During
inception
phase
OVI8- # of companies that are aware of
EPA trade opportunities (sex-
disaggregated data will be collected in
terms of women-run/ -owned
businesses);
OVI9- # Policy recommendations on
EPA safeguards legal framework
formulated
Inception baseline, mid-term and
final reports
Project reporting, beneficiaries
reports
Project questionnaires/survey to
beneficiaries with range of
questions on their level of
awareness of EPA trade
opportunities
Election processes of 2019 lead
to a stable and fully operational
public administration
Macroeconomic stability is
improved
No major shock impacts on the
economy
Government commitment to
advance trade facilitation issues
Results (what to accomplish by the project)
Result 1 – Good governance and
core quality infrastructure services
at the institutional level (INNOQ)
upgraded to ensure international
recognition
To be
developed
during
inception
phase
OVI10 – # of national standards and
technical regulations developed following
international best practice thanks to
support from this project
OVI11 – Status of the implementation of
the QP
OVI12 – Status of the training department
Inception baseline, midterm and
final reports
Official Journals
Project publications and
documentaries
INNOQ continues to be
supported by the Government
INNOQ is committed and
demand driven
Sufficient Human Resource
capacity available at the
beneficiary institutions
61
OVI13 – Status of Business Strategy and
Plan and Marketing Plan
OVI14 – # of awareness raising activities
(# of people attending) on the importance
of quality and compliance for market
access
OVI15 – # of people informed as to the
quality services offered for the priority
value chains in the country
Project reports, INNOQ reports,
beneficiaries’ reports
Reports from the communication
campaigns
Surveys/ questionnaires
Laboratories are committed and
have capacity to participate in
project activities
Result 2- Increased technical
competences of the conformity
assessment service providers and
ensuring international recognition
as per the needs of the selected
VCs with a focus on the provinces
of Nampula, Zambezia and
Maputo
To be
developed
during
inception
phase
OVI16 – # of accreditation ready
certification services available
OVI17 – # of accreditation ready testing
available to the selected value chains
OVI18 – # of accreditation ready
metrology services available to selected
value chains
OVI19 – Increased job competency of the
staff in the field of testing, calibration and
certification
Inception baseline, midterm and
final reports
Official Journals
Project publications and
documentaries
Project reports, INNOQ reports,
beneficiaries’ reports, audit
reports
Monitoring and evaluation report
of the communication campaign
Surveys/ questionnaires
INNOQ continues to be
supported by the Government.
INNOQ is committed and
demand driven.
Sufficient Human Resource
capacity available at the
beneficiary institutions
Laboratories are committed and
have capacity to participate in
project activities
Result 3 - Enhancing capacity of
SMEs to comply with export market
requirements leading to business
opportunities
To be
developed
during
inception
phase
OV20 – # of SMEs benefitting from
coaching and mentoring support (of
which: SMEs owned by male/female
entrepreneurs)
Inception baseline, midterm and
final reports
Official Journals
Continued private sector demand
for upgrading strategies and
plans to increase
62
OV21- # Companies adopting upgrading
plans to improve competitiveness and
export-market access, supported by this
action, of which # in priority value
chains/provinces geographic distribution
(# of male/female owned SMEs)
OV22 - % increase in resource efficiency
use, aggregated value, adoption of
standards (all contributing to increase
exports to EU); achieved by companies
supported by this action
OV23 - # of business development
support service providers strengthened
with the support of this action (of which: #
male/female participants)
OV24 - # of institutional trainers/coaches
(of which # male/female) empowered
through this action for SME upgrading
support
Project publications and
documentaries
Project reports, beneficiaries’
reports
Monitoring and evaluation report
of the communication campaign
Surveys/ questionnaires
competitiveness and export-
market access
Interest from producers to invest
in improving the quality of their
products to meet EU export
market requirements
Participating SME are committed
Result 4 - Enhanced government
knowledge on the legal and
institutional framework required to
apply EPA trade
defense/safeguards articles
To be
developed
during
inception
phase
OVI25 - # government officials trained
on the legal and institutional structure,
required statistics, inventory of
safeguards and existing legal framework
(of which #men/women);
OVI26 - Action Plan with clear vision
and sequencing of activities (incl.
statistics), on how trade safeguard
Inception baseline, midterm and
final reports
Project reports
Drafted documents
Continued interest and
commitment from the
Government and various
stakeholders regarding trade with
the EU
Sufficient Human Resource
capacity available at the
Government institutions
63
capacity can be developed in
Mozambique established;
OV27- Draft legislative and regulatory
texts on EPA compliant safeguards
available for government
consideration/adoption
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ANNEX C- WORK PLAN
Components
Implementation (quarterly)
Y1 Y2 Y3 Y4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Specific Objective 1 Increased sustainable market-driven Quality Infrastructure services to support the production of quality products for the selected VCs
Result 1 Good governance and core quality infrastructure services at the institutional level (INNOQ) upgraded to ensure international recognition
Sub-result 1.1 Supporting the implementation of the National Quality Policy (NQP) and upgrading of the regulatory framework
NQP Implementation Plan is implemented (the monitoring indicators are developed)
Awareness raising actives to promote NQP once it is approved
Gap analysis of the national horizontal QI legislation
Recommend alignments of the QI legislation with the NQP
Awareness raising and training on “better technical regulations”
Training regulators on Regulatory Impact Assessment
Regulatory gap assessment for Technical Regulations for each of the supported VC
Drafting Technical Regulations related to the VCs (following international best practices and including public consultations)
Sub-result 1.2 Standardization capacity of INNOQ is enhanced with focus on the selected VCs
Value chain baseline study to identify value chains with strong potential for regional and global trade, growth and job creation with focus on Nampula, Zambezia and Maputo provinces (Inception Phase)
Inventory of national standards for the selected value chains (Inception Phase)
65
Developing national standards in priority areas (e.g. standards for priority products to ensure quality of the final product, for testing levels of pesticides/contaminants in food products/soil and for food inspectors, performance standards for packaging materials, etc.)
Training INNOQ internal and external personnel in good practices in standardization
Developing in cooperation with relevant stakeholders simplified code of practices and self-assessments tools for producers in selected VCs
Training producers in Zambezia, Nampula and Maputo regions on code of practices and self-assessment tools
Supporting INNOQ to participate in standard-related regional and international fora (e.g. ISO, TCs)
Sub-result 1.3 Sustainability of INNOQ’s operations is increased (incl. creation of the training unit)
Training need assessment based on INNOQ training department commercial priorities (Inception Phase)
Training of the Trainers
Develop technical training curricula
Drafting training materials and manuals for tutors
Training on QMS as per ISO/IEC standards
Training staff and auditors on auditing management (ISO 19011: 2018) and food standards (GlobalGap, BRC, HACCP, ISO22000)
Training on risk assessment
Revising a Marketing Strategy and Plan in line with National Quality Policy Implementation plan
Promotional activities carried out and materials, tools developed as per Marketing Strategy
Supporting outreach through social media and e-marketing campaigns
Supporting in the organization of celebration of thematic days (Metrology Day, Standardization Day, etc.)37 and other events in relation to INNOQ core business activities with strong presence of the private sector
37 This will include also INNOQ's commemorative dates are March 24 (INNOQ creation), May 20 (World Metrology Day), October 14 (World Standardization Day) and second Thursday of November (World Quality Day).
66
INNOQ will learn from the successful National Standardization Bodies operating in the region, EU and from the group of lusophone countries
INNOQ’s Business Strategy and Plan are updated.
Result 2 Increased technical competences of the conformity assessment service providers and ensuring international recognition
Sub-result 2.1 Certification capacity of INNOQ is strengthened towards international recognition with focus on the needs of the selected VCs
Needs assessment and roadmap for strengthening INNOQ’s certification capacities (Inception Phase)
Based on the results of the needs assessment, identifying, mobilize and train a core of competent (registered) assessors and auditors
Providing capacity building for certification department towards accreditation (ISO/IEC 17021-1, ISO/IEC 17065, etc.)
Arranging blank audits and support accreditation process
Sub-result 2.2 Strengthen the delivery of the legal metrology function and the offer of the calibration services by INNOQ
Legal metrology
Needs assessment completed during the Inception Phase
Road map for the strengthening of the legal metrology function by the project prepared. Special focus on the selected VCs and regions
Determining the legal metrology and pre-packaging requirements of the VCs for the various potential export markets
Providing capacity building to INNOQ personnel
Procurement of the equipment and related training
Calibration services
Conducting an in-depth assessment of metrology services provided in the province of Nampula,Zambezia and Maputo versus needs of the selected VCs (Inception Phase)
Conduct a feasibility study for different options of how those services can be delivered to the VC actors in Nampula, Zambezia and Maputo (Inception Phase)
Deliver a roadmap for the strengthening of the calibration function at INNOQ (Inception Phase)
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Development of the technical capacity of INNOQ staff. Training and qualify human resources (e.g. staff, auditors, assessors, trainers) following internationally recognized training curricula, ensuring sustainability over time through a train-the-trainers approach. Training can also take the form of secondments and coaching
Assist the alignment of the laboratory management system, operations and document management system with the requirements of ISO 17025:2017
Procurement, installation, training and commissioning of laboratory equipment
Designing a sustainability plan for the maintenance of the equipment after project end
Arrange blank audits and support accreditation process
Active participation in the international and regional fora (e.g. BIPM, OIML, AFRIMETS, etc.)
Sub-result 2.3 Strengthening the availability of the testing services for the selected value chains in Nampula, Zambezia and Maputo
Conducting an in-depth assessment of testing services provided in the province of Nampula, Zambezia and Maputo and compare existing capacity in providing these services with industry needs in the selected VCs (Inception Phase)
Based on the above assessment identify gaps and draw road map to address those gaps. Testing should cover soil testing, pesticide residue analysis, fertilizer tests, water quality analysis, and end product testing (as per standard), heavy metal contamination, microbiological analysis (Inception Phase)
Business Plans for the laboratories formulated
Train and qualify human resources following internationally recognized training curricula, ensuring sustainability over time through a train-the-trainers approach. Secondments and coaching might be also used where appropriate
Assist the alignment of the laboratory management system, operations and document management system with the requirements of ISO 17025:2017
Procurement, installation, training and commissioning of laboratory equipment
Designing a sustainability plan for the maintenance of the equipment after project end
Provide support to laboratories for calibration, PT programs and inter-laboratory comparisons
Organize blank audits and support the formal accreditation process
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Strengthening the participation and visibility in the regional (SADC Regional Laboratory Association (SRLA)) and international (ILAC) structures to facilitate exchanges of experience38.
Result 3 Enhancing capacity of SMEs to comply with export market requirements leading to business opportunities
Sub-result 3.1 SMEs and BDS providers in value chains with major export-market access potential are identified and committed to participate in the upgrading programme
Conduct a baseline study with focus on challenges and opportunities of SMEs and BDS providers when exporting to EU at the four major export subsectors to EU
a) Comparative value chain analysis on challenges and opportunities for export-market access to EU in four subsectors; and action plan to address most-pressing issues; b) Identification of SMEs with major export readiness and potential, and areas of competences that need training/ coaching/ upgrading to increase competitiveness, and undertake quality improvements to adapt their products and processes to the requirements of the EU market; c) Identification of BDS and BDS providers’ gaps that require improvement so the SMEs at the identified value chains meet the EU market requirements.
Sub-result 3.2 SMEs are assisted towards greater export-market access
Capacity building among the private sector to improve their export performance
Deliver export-oriented training programme for SMEs by experts with the participation of BDS providers (on the job training), to address most-pressing issues in specific standards and upgrade the quality of their products.
Assist selected SMEs to realize export opportunities (pilot application)
Selection of (at least) 5 to 10 SMEs in identified sectors with greatest export opportunities, in accordance with defined enterprise eligibility and selection criteria.
Assessment of the selected SMEs carried out by experts on: external sources of competitiveness; product markets and positioning; managerial skills and social aspects; technical capacities and quality; and financial performance.
38 Including SADC regional meetings in March.
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Upgrading strategies with priorities and remedial actions for each beneficiary SMEs are developed by experts in cooperation with BDS providers and national consultants (following an on-the-job training approach); and agreed with SME management.
Upgrading plan based on the developed strategies, with required interventions in terms of quality improvements, adoption of new technologies and practices, introduction of ICT systems and management capacity building.
Sub-result 3.3 Capacity built at BDS providers to increase compliances on quality and conformity assessment requirements within their network of SMEs
Improving BDS and capacities of national BDS providers related mostly to standards and quality
Assessment of the quality and capacities of BDS (selected according to targeted value chains among BAU, CTA, APIEX, INNOQ, GAPI, INCAJU and other sectoral associations,..) to provide trade and export-oriented assistance to SMEs in the selected sectors in relation to compliance with market requirements for the EU , and development of an action plan to improve BDS capacities.
Capacity building programme for BDS providers through training and direct involvement in the implementation of upgrading activities under the project, and also with a Train-the-Trainer Model.
Strengthening BDS providers’ coordination and integration in the targeted value chains for a conducive business environment facilitating trade
Strengthening the capacities of the APIEX to promote exports, and facilitate engagement with BDS at national level aiming to establish a market-responsive network of BDS providers.
Support strategic alliances between public and private BDS stakeholders and/or SMEs with local and foreign partners, intermediary organizations and agencies serving the same/similar segments of clients.
Specific Objective 2 Improved Government coordination and implementation of the EPA trade safeguards
Result 4 Enhanced government knowledge on the legal and institutional framework required to apply EPA trade defense/safeguards articles
Sub-result 4.1 WTO-EPA consistent trade remedies regime developed and implemented
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Organization of national consultations involving the participation of relevant ministries, public and private entities to collect views on how to organize the process leading to the development of a legal and regulatory framework on safeguards, including drafting a Law on Safeguards and implementing regulations as well as an institutional/ implementation framework (Inception Phase).
Conducting a comprehensive inventory of existing trade remedies/safeguard measures, if any, currently used in Mozambique, to ensure their consistency with EPA safeguard articles.
Conducting a series of training courses/workshops to concerned government officials, private sector organizations, economic and trade research institutions to introduce them to the EPA safeguards provisions and their implication for Mozambique’s trade policy and trading relations (to tentatively start during Inception Phase).
Training of trainers on the SADC/EU EPA safeguards.
Preparation of toolkits, including a Training Module on the safeguards in the context of SADC/EU EPA.
Assisting in the design of a road map/action plan for developing trade safeguards capacity in Mozambique.
Study tours for information and experience-sharing in selected SADC EPA member countries.
Assisting in the establishment of an inter-ministerial task force/committee to be composed of all concerned ministries and bodies with the participation form the private sector organizations and associations to ensure the necessary coordination and coherence within the government machinery in the area of safeguards.
Enhancing private sector’s capacity to better understanding and appreciating of what the EPA safeguard instruments entail, and building legal, regulatory and institutional capacity of the private sector in the use of trade remedies in the context of EPA.
Awareness building for concerned Civil Society representatives on the importance and implications of the trade defense instruments for the country’s development and trade agenda, taking due account of the SDGs agenda.
Result 5 Project Management
Project Management Unit
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ANNEX D- KEY PROJECT ACTORS: STAKEHOLDER ANALYSIS
Institution Role Strengths Areas for improvement
National Institute for Standardization and Quality (INNOQ)
INNOQ is an autonomous body that has been operating under the Ministry of Industry and Trade (MIC), and acts as the recognized central body responsible for implementing the quality policy and for coordinating all standardization and quality activities at national level. INNOQ’s mission includes the aim to improve the conditions of industry, protect consumers and the environment, increase and facilitate domestic and international trade in order to improve the standard of living, and strengthen the overall economy of the country.
INNOQ facility is modern and well maintained; the offices are well organized and functional, and the laboratories facilities are well designed and are environmentally controlled.
Technically competent staff – with good absorption capacity for further professional trainings.
Metrology instrumentation is basic, but five of the laboratories are accredited to the international standard ISO/IEC 1702539.
Accredited for Management System Certification (ISO 9001).
No Quality Policy in place.
Calibration services offered are very basic (only five scopes: temperature, mass, volume, pressure and electricity) and available only in Maputo.
INNOQ lacks resources for routine maintenance, re-calibration and the traceability of measurement of the many instruments being used in the INNOQ laboratories.
Scope of the activities of the certification body is very limited and needs to be extended.
No inspection capacity.
Training unit is still in its infancy.
Weak participation of the private sector in standardization activities.
The marketing activities –linking with private sector - need to be upgraded and the website needs a re-design and translation (now only in Portuguese).
There is also low awareness about INNOQ and about the services that INNOQ provides among private sector.
Limited capacity of SMEs to comply with quality requirements. Nowadays large companies in Mozambique, tend to seek suppliers outside Mozambique, because of the poor level of quality of products and service found locally.
39 ISO 17025 is the standard for which most laboratories must hold accreditation in order to be deemed technically competent.
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Due to current financial situation of the country – the budgets of the government institutions are frozen.
Testing laboratories
In Mozambique, there is currently a very limited number of accredited testing laboratories. Majority of test are not accredited and therefore not internationally recognized which constitutes a potential barrier to trade. Some of the accredited tests which are not available in the country are required by private sector from the priority value chains, including testing for: aflatoxin, heavy metals and pesticides residues. Those tests are critical for domestic health and exports facilitation (e.g. exports into the EU).
The presence of accredited laboratories has increased the confidence and the number of testing activities at national level.
Technically competent staff – with good absorption capacity for further professional trainings.
The market for the services exists (business case) but is not exploited (currently samples for testing are sent abroad).
Very limited number of accredited laboratories for the size of the Mozambique economy.
Laboratories are not sufficiently equipped, the technical competence of the staff needs to be strengthened and the quality management systems at the laboratories need to be improved (as per ISO 17025).
Laboratories, to keep their accreditation, need to send samples and equipment abroad, for proficiency testing and calibration, when services are not offered at national level which is expensive and time consuming.
Public laboratories in some cases have poor environmental conditions to host the equipment and in most cases limited budget for consumables, which limit their ability to improve their services.
The marketing activities (creating demand) – which would be key for raising awareness of private sector as to services offered locally – are needed.
There is also low awareness about the testing services being provides which results in an untapped market.
Due to current financial situation of the country – the budgets of the government institutions are frozen.
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Associação de Laboratórios de Moçambique (ALM)
ALM - is an association of national laboratories which assists its members in provision of internationally recognized testing services. The network is in urgent need of re-vitalization.
“ALM-RELACRE” exchanged best practices on running national laboratory association.
MoU between ALM and RELACRE.
ALM participated in the creation of the SADC Association of Laboratories.
Organized trainings to the benefit of its members: e.g. on ISO 17025 or on “Business Planning”.
“Calibration and Testing Laboratory Directory in Mozambique” was completed in partnership with ALM.
Membership base needs to grow.
Number of activities carried out (incl. trainings) needs to increase (members need to see value for money of the ALM membership).
Promotional activities of ALM members and their services need to be strengthened – to link the demand for the testing services with the supply.
Confederation of Business Associations (CTA)
CTA is a conglomerate of business associations in Mozambique. It is engaged in economic and sectoral reforms to ensure business competitiveness and quality, to promote private ownership and investment, to generate employment. The stated purpose of these working-groups is to create and promote debates between the government and the private sector on prioritized issues, with focal points on the government side.
CTA is active in various higher-level public-private dialogue activities, through which it advocates for business climate improvement and reduction of administrative burdens to SMEs.
Under the COMPETIR Project, CTA and INNOQ cooperated as lead organizers for the “Quality Award” Scheme which raised awareness of quality-related matters at the highest level of Government in Mozambique and created an extra incentive for SMEs to strive towards quality improvements.
Provides limited support in terms of private sector trainings and, let alone, one-to-one business counselling or mentoring to groups of individual entrepreneurs.
Its focus appears to be in promoting the interests of already medium-to larger enterprises in the economy at the expense of the micro/small segments of Mozambique’s private sector.
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Chamber of Commerce of Mozambique
The Chamber of Commerce of Mozambique is a network, which promotes trade among local and foreign companies. The Chamber of Commerce fulfils primarily representative functions and is limited to organizing events or to be sporadically present in public private sector dialogue fora. It is member associations of CTA.
Member association of CTA.
(To be further refined during the Inception Phase)
Its outreach is hampered by lack of financial and human resources as well as a lack of physical office infrastructure outside Maputo.
(To be further refined during the Inception Phase)
Associação Industrial de Moçambique (AIMO)
Associação Industrial de Moçambique (AIMO) is a subordinate association of CTA that represents the industrial sector of Mozambique. AIMO fulfils primarily representative functions and is limited to organizing events or to be sporadically present in public private sector dialogue fora. It is member associations of CTA.
Member association of CTA.
(To be further refined during the Inception Phase)
Its outreach is hampered by lack of financial and human resources as well as a lack of physical office infrastructure outside Maputo.
An Industrial Counselling Centre (Centro de Aconselhamento de Desenvolvimento Industria, CADI) of AIMO was established by UNIDO between 1999 and 2010. It was discontinued due to operational and financial challenges aggravated by the demise of the manufacturing sector of the Country.
(To be further refined during the Inception Phase)
SME Business Association (APME)
SME Business Association (APME) fulfilling mostly a representation function of its members with very limited practical private sector development support rendered to SMEs. APME fulfils primarily representative functions and is limited to organizing events or to be sporadically present in public private sector dialogue fora.
Member association of CTA.
(To be further refined during the Inception Phase)
Its outreach is hampered by lack of financial and human resources as well as a lack of physical office infrastructure outside Maputo.
(To be further refined during the Inception Phase)
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Investment and Export Promotion Agency (APIEX)
APIEX is a public institution under MIC. APIEX was established in December 2016 with the mandate to promote and facilitate investment and exports, in accordance with the Government’s economic policy. APIEX emerged from former the Investment Promotion Centre (CPI), Special Economic Zones Authority (GAZEDA) and the Institute for Export Promotion (IPEX). Its mandate is of relevance for achieving the objective of the Programme as APIEX can amplify efforts to make supported SMEs exporters visible to buyers in international markets.
It is the natural counterpart to work with existing foreign subsidiaries in the country and, as such, it can assist to trigger new FDI expansion investments (greenfield or joint ventures) that would mitigate challenges of SMEs in accessing financial resources for achieving quality compliance.
The internal governance and reporting structures are gradually stabilizing after two volatile years 2016/2017 when the institution was established.
(To be further refined during the Inception Phase)
Better integration with Single Window/Balcão de Atendimento Único (BAUs) is foreseen to improve APIEX’s outreach in the Provinces.
(To be further refined during the Inception Phase)
Institute for the Promotion of Small and Medium Enterprises (Instituto para Pequenas e Medias Empresas, IPEME)
IPEME was established in 2008 and reports to MIC. IPEME has developed strategies for four sectors: agricultural commercialization; textiles and clothing; chemicals; and rural industrialization.
Its mandate is to provide technical support to SMEs and to generally boost awareness of the challenges faced by SMEs.
(To be further refined during the Inception Phase)
The experiences of UNIDO’s COMPETIR Project in working with IPEME were mixed, expectations were not been met in full. This was especially the case for the IPEME−Orientation Centres for Entrepreneurs (COrE).
A business plan for the implementation of an IPEME managed CorE in Maputo was drafted on the basis of several scenarios identified and submitted to IPEME for consideration and positioning. It concluded that the CorE lacks financial viability in its early years and that this situation can only be overturned once effective market credibility is installed.
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At this moment, the COrE’s in other Provinces40 are either non-existent or operate at very basic level which undermines their relevance in terms of BDS support in particular outside Maputo.
(To be further refined during the Inception Phase)
BAUs Single-Window (Balcão de Atendimento Único - BAUs) are one-stop-shops for business licensing and information dissemination implemented in all provinces. They constitute one of the few formal reference points in the sub-regions that could be leveraged for a business development support services beyond business registration. BAUs have the potential to reduce administrative processes, allowing submitting standardized information at a single entry point.
The one-stop shops in Maputo City and Nampula are among the most complete ones and they could serve as pilot cases to demonstrate improved efficiency if their capacities are strengthened, particularly in terms of human resources and equipment.
(To be further refined during the Inception Phase)
Current challenges including lack of interoperability, outdated processes, and limited visibility are preventing to unleash their full potential.
None of these locations house all the agencies that an entrepreneur needs to visit to open a company.
Better integration of BAUs with the BDS is necessary to improve their outreach particularly in the provinces, where the lack of significant presence of BDS providers could impede practical SME upgrade support.
At present, information on regulatory processes is diffuse and hard to access. Providing accessible, user-friendly information on regulations and procedures is important, and in all areas of business regulation — and it does not necessarily require substantial resources.
In 2014 the government of Mozambique launched the e-BAÚ system, an integrated platform for service delivery that aims to connect the one-stop shops and other institutions relevant for business start-up. It
40 The COMPETIR Project finalized a feasibility study for the COrE in Nampula and presented a sustainability plan for a revised COrE model but no visible follow-up occurred at the level of IPEME.
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has taken years for the system to develop, and the platform is currently being used for business licensing only.
(To be further refined during the Inception Phase)
MASA Minister of Agriculture and Food Security (MASA) formulates and implements agricultural sector policies, including agro-industry.
It also contributes to food security and poverty reduction.
Involved in a project using Geographic Information Technologies, in the capital Maputo, with the objective of capacity building of Portals and Geographic Information Systems to track CAADP key indicators and investments in agriculture
Interest in more involvement of young people in the agrarian sector.
(To be further refined during the Inception Phase)
Regulatory discrepancies and lack of coordination between MASA and Minister of Public Health. As an example, the slaughterhouses are controlled by DCA/MASA and LNHH Minister of Public Health controls the supermarkets; causing problems in national health control.
(To be further refined during the Inception Phase)
MIC Minister of Industry and Commerce (MIC) is focused on formulating and implementing the national industrial and trade policy and to ensure growth of MSMEs for the development of agricultural and industrial production, exports, and food safety. Along with the private sector associations, general BDS is primarily linked to the Ministry of
MIC has the leadership responsibility for elaborating and monitoring implementation of the business environment strategy and of trade policies.
(To be further refined during the Inception Phase)
Strengthening the Ministry´s capacity (personnel, training and specialized knowledge) for monitoring and guiding implementation, especially with a view of ensuring strikingly weak inter-ministerial coordination is key. It is an essential basis to accompany the smooth implementation of the EPA.
Support for key implementing institutions such as Customs Authorities and Tax
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Industry and Trade (MIC), through the Directorate for Support to Private Sector (DASP), and its specialized Agencies: Investment and Export Promotion Agency (APIEX) and Institute for the Promotion of Small and Medium Enterprises (IPEME).
Authority is essential, to enable these government bodies to implement new reforms and modernize systems.
(To be further refined during the Inception Phase)
Ministry of Land, Environment and Rural Development (MITADER)
MITADER was created with the mandate to ensure and promote sustainable and inclusive development with a specific focus on the rural parts of Mozambique.
Its mandate makes MITADER, and more specifically MITADER’s National Directorate of Rural Development, an important counterpart for the provision of rural BDS.
(To be further refined during the Inception Phase)
One caveat to the provision of effective BDS by MITADER is that the support is not institutionalized in the regions (e.g. as opposed to the BAUs) but is usually carried out by a group of technical experts that are only loosely attached to MITADER and whose engagement depends on international donor support that comes in cycles. This creates an environment of volatility and high turnover of short-term experts.
(To be further refined during the Inception Phase)
GAPI GAPI is a development finance institution created in 1990 registered with the Central Bank of Mozambique. GAPI focuses on financial services (SME credits, micro-finance, credit guarantees, venture capital, etc.), training and business development (SME formalization support, management training, financial education and literacy, etc.) as well as institutional
GAPI, through its sister company GAPI capital management, is in the process of developing an SME Fund with an envisaged financial volume of a minimum of 10M USD.
BDS provided by GAPI is not driven by philanthropy as it seeks to minimize the credit default risk in the case of
Need to establish strategic linkages with financial institutions like GAPI and investors to facilitate SMEs access to finance to provide direct support to SMEs aiming to improve their productivity, competitiveness and export-readiness, creating success stories to inspire other entrepreneurs in the country.
(To be further refined during the Inception Phase)
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development. Through its 14 Branches established in all provinces, 20 rural development centers (micro-banks) and a team of field staff, it supports on average 100 projects.
credit financing and aims at increasing the internal rate of return (IRR) in case of equity financing.
(To be further refined during the Inception Phase)