SPEED PROJECT

COMPLETION REPORT

SEPTEMBER 2010 – FEBRUARY 2015

CATALYZING REFORMS FOR

COMPETITIVENESS IN MOZAMBIQUE

March 2015

Work with and through

Mozambican “clients”

Reputation for

timeliness and quality

Demand-driven, agile

and flexible

SPEED is USAID’s Rapid Response Team

for addressing private sector issues

Improve the business

environment

Enhance

competitiveness

Increase investment

More companies

doing more business,

resulting in jobs and

income growth

4.5 year project through Feb 2015

$19.4m ceiling $18.5m obligated

SP

EE

D A

ppro

ach

SPEED Goals

2

Mauritius: 28 (best in Africa)

Zambia: 111

Mozambique: 127

Angola: 181

Eritrea: 189 (worst globally)

Since 2011, SPEED contributed to every

reform that improved Mozambique’s Doing

Business ranking

2013 2014 2015

22places!

7 places

15 places

Dealing with

Construction

Permits

Trade Across

Borders

Resolving

Insolvency

Property

Registration

Dealing with

Construction

Permits

2016

Mozambique is

expected to jump

again due to

SPEED-

supported:

Streamlining of

Starting a

Business project

2015 Doing Business Ranking (out of 189 countries):

9 Forms

Single Form

3

SPEED helped progress nearly 100 reforms

Analysed

96

Presented for

consultation

87

Presented for

legislation

44

Passed

37

Implementation

began

33

28 27 18 16 15

26 21

12 8 7

42 39

14 13 11

Policy

Regulations

Administrative

Procedures 4

SPEED’s messages reached tens of

thousands of Mozambicans

7,500 followers

500 connections

2,400 views

since 2014

3,500 active website users

140 blogs

50 pages of

newspaper

content

32 documentaries and shorts

11 televised debates

E-book + print publications Competitiveness series

Public Probity Law

EITI Report

Insolvency Law

100 Top SMEs

Worked with34 CSOs Capacity-building & outreach activities

reached 8,362 people…including

1,750 women

5

Implementation of Cabo Delgado Sustainable

Development Forum

Support to Arco Norte Tourism Development

Corporation

Training of judges for the implementation of the

insolvency law

Tourism and land procedures in the Gorongosa

National Park

Land administrative procedures dissemination

Tourism Competitiveness study

Non tax barriers to agriculture identified

Over 55 support initiatives and activities

Local content assessment

Construction permit procedures and city audit

Dissemination of customs transit regulation

and procedures

Quelimane

Nampula

Nacala

Tete

Chimoio

Maputo

Beira

Gorongosa

Lichinga

SPEED’s work touched all 10 Provinces

Agriculture Competitiveness study

Port terminal efficiency and competitiveness

6

Public sector

Ministry of Industry and Trade

National Inspectorate for Economic

Activities

Maputo Public Transport Authority

Ministry of Finance

Private Sector Working Group

SPEED built capacity of dozens of public and

private sector institutions

Private sector

National Federation

of Agricultural

Associations

Center for

Mozambican and

International Studies

CTA ACIS

CCMUSA –

AMCHAM

CACM Milange

Business

Association

Tiri Pamodzi

Mozambican

Association of

Economists

FEMME

Central Region

Antenna

7

SPEED was active in four key areas

Business

environment,

trade and

investment

Tourism and

biodiversity

Democracy

and

Governance

Agriculture

8

SPEED improved the business

environment in six ways

Trade

facilitation

Mozambique Business

Environment

Doing

Business

Public-private

dialogue

Employment Investment Infrastructure

9

Supported development, dissemination and implementation of

insolvency law

Streamlined construction licensing procedures in Maputo

Improved the system for registering property

Provided information to business about the legal framework for tax

Assessed proposals for private credit bureaus

Focused on making it easier to pay taxes

Simplified procedures for registering businesses

2013 2014 2015

22places

7 places

15 places

1

2

3

4

5

6

7

SPEED helped Mozambique catapult 22

places in the Doing Business ranking

10

SPEED supported both the government

and private sector to improve dialogue

“With SPEED, the private sector dialogue

with Government is improving”.

Adriano Maleiane, Minister of Economy &

Finance of Mozambique

Strategy

Contributed directly to revising the proposed EMAN II

Supported CTA and PSWG in contributing to the

discussions around EMAN II

Worked with MIC to plan effective implementation

Assessment Mapped decision making levels and levels of

responsibility at central, provincial, district and village level

New Model Worked with leading associations to develop a new

model for PPD (accepted by government)

11

SPEED implemented USAID’s

Partnership for Trade Facilitation

1

2

3 Designed and launched

international trade website – WTO

Bali Agreement compliant

Supported implementation of Transit Module on SEW (Single

Electronic Window) – developed training materials and

disseminated information on the new laws, procedures, and

regulations across all main points of transit

Recommended migration of PSI (Pre-shipment inspection) to a

Risk-based Inspection system

12

SPEED supported evidence-based private

sector advocacy on labor market issues

Assessed

competitiveness of

labour market

Analysed role of foreign

workers in the economy

Reviewed and

quantified cost of

declarations of public

holidays

Helped ACIS advocate

for changes in

application of visa rules

and cases of trade

unions charging fees

Supported CTA’s

minimum wage

negotiations

13

SPEED helped improve the investment

climate

Improved… the foreign exchange

legislation

Assessed… the impact of Central Bank

procedures on the business

environment

Analysed… public-private partnerships

legislation, competition law

and Special Economic Zones

14

SPEED supported infrastructure reforms in

mobile telephony and electricity

Private sector concerns

SPEED response

Mobile telephony Electricity

Uneven quality Restricted areas

Poor quality

Quality of Service

Manual for

Regulator

Proposals for

increasing private

sector participation

& rationalizing

pricing

15

SPEED employed a multi-pronged strategy

to improve the environment for agribusiness

1

2

3

4

New Alliance

Support to Ministry of Agriculture

AgroBiz

Agriculture Competitiveness

16

Out of a total of 15 reforms:

7 completed

&

7 in progress

SPEED contributed to all five

objectives

Input markets

Land rights

Trade facilitation and taxes

Access to credit

Nutrition

4

3

2

1

5

SPEED has supported important dialogue

innovations in the sector helping create forums for

the companies involved in the New Alliance

framework to come together and discuss problems

they face directly with government”.

Carlos Henriques, ACIS President 17

Input markets

Land rights

2 1

Worked with MoA to train district-level staff on land rights allocation

Analyzed cessão de exploração regulations and spearheading dialogue across the country

Analyzed and helped to disseminate the new seed law and supported seed forum

Created and hosted first fertilizer seminar and facilitated fertilizer users association

Trade facilitation and taxes

3

Worked with TA and MoA to eliminate illegal fees

Supported TA to implement invoice system and eliminate simplified VAT

Worked to remove non-tariff barriers e.g. scanners and Nacala export terminal (TEEN)

Photo: The National

Seed Conference

Updated the ACIS legal

framework manual on

land Studied differences

between the prices of

certain commodities in

Nelspruit and Maputo 18

Access to credit

4

Reviewed new law to permit

private credit information

bureaus

Promoted Mobile Money

and Agency Banking

through workshop

sponsorship

Analyzed the cost of

capital in Mozambique

through an in-depth study

Nutrition

5

Reviewed the proposed draft Food

Fortification Law and Food Fortification

Program through a “private sector lens”

Supported implementation of Food

Fortification Action Plan

Worked with GAIN and WFP to

design the SUN Business Network

(SBN) in Mozambique

19

SPEED cultivated a close partnership

with the Ministry of Agriculture

Enabled CEPAGRI to

provide services to

investors

Developed and helped

implement the

Agriculture Investment

Plan

“SPEED's support to the Ministry of Agriculture and Food

Security has been remarkable and instrumental in helping

us achieve our goals with regards to policy under the New

Alliance for Food Security and Nutrition. The willingness,

promptness and professionalism constantly presented by

this program are exemplary”

Raimundo Matule, National Director for Economy, MINAG

Supported MoA via

Senior Economic Advisor

(Luis Sitoe)

20

SPEED developed an innovative

agribusiness media campaign

Working together SPEED and Soico were able to present

agriculture firmly on the national agenda at an important

moment in the country’s history…”Dailton Fonseca, Soico

1 televised national interview program with Helder Muteia (ex minister of agriculture)

+ 5 televised debates on the O País Económico Program

+ 5 televised phone-in programs on Linha Aberta

10 x 4 page supplements in O País newspaper with a specific

focus on agricultural success stories and challenges

+10 x 1 page opinion / editorial articles in O País newspaper

20 x 60 second real life case study success stories broadcast

on radio and TV

+ 12 x 15 minute Agro.Biz mini documentaries on key issues

broadcast on TV

21

SPEED explored the potential impacts of

the natural Resource Boom on

agricultural competitiveness

5Agricultural value chains analysed in-depth

Soybeans Cotton Rice Tomatoes

Findings presented during the Competitiveness

“roadshow” in Maputo, Beira and Nampula

+ Competitiveness compilation book produced and

distributed

Should the metical strengthen to 20 MT/$ (Dutch disease impact):

- cotton and soybeans look vulnerable (competitiveness under

threat)

- rice non-competitive situation is accentuated

- banana and tomatoes continue to be competitive

Banana

Report Excerpt

22

SPEED recognized the importance of tourism

to create jobs and preserve biodiversity

1

2

3

4

Open Skies

Competitiveness

Biodiversity

Institutional support

5 Regulatory framework

23

SPEED’s Open Skies initiative brought

a new dynamism to the sector

Reviewed the regulatory environment and explored the impact of air

transport liberalization on business and economic competitiveness

Provided a clear set of recommendations on regulations and institutional

framework

Deployed rapid response team that was responsible for effective

technical support to the Mozambican authorities through CTA and IACM

Increased private sector participation in policy and legislation

Supported IACM on reforms such as including implementing ICAO

standards; reviewing and drafting laws, regulations and bilateral air service

agreements (BASA); and negotiating the Fifth Freedom with South Africa

24

SPEED examined tourism

competitiveness in light of both the

Resource Boom and renewed conflict

Undertook studies of:

- the business and leisure tourism sectors

- the impact of renewed conflict on tourism

Developed a model to simulate the effects of

Dutch Disease

Quantified the costs of various existing barriers

to business and the impact of renewed conflict

on tourism value chains

Contributed to widespread media coverage of the renewed conflict

and tourism downturn in the country

Screenshot of model

25

Supported the government to develop best practice

tools to allocate concessions in protected areas

Supported MICOA to make Mozambique

CITES compliant

Analysed conservation law and developed a

manual for applying it

SPEED helped preserve of one of

Mozambique’s greatest treasures...its

Biodiversity

26

SPEED strengthened and supported key

Tourism & Biodiversity institutions

Supported a senior

adviser to facilitate

policy dialogue and

international

tourism events

Equipped Government

and MdI with the

information and tools

necessary to reform the

organization

Supported

development of the

strategic plan

Provided senior

advisor to support

director

Brought 6 park

directors to seminar

on new conservation

law

Built capacity of

financial and

administrative staff

to implement

USAID’s

procurement

procedures

Ministry of

Tourism

Mozaico de

Indigo ANAC BIOFUND

Arco Norte Tourism

Development Corporation –

SPEED support resulted in

implementation of key administrative

procedures on STDZs

27

SPEED helped improve the regulatory

framework for tourism

Assisted private sector to present alternatives to

the proposed 1% levy on tourism revenues

Produced revised version of the Legal Framework

for Tourism manual (in Portuguese and English)

Supported private sector to respond to draft

regulations on hygiene and comfort standards

28

SPEED emphasized the importance of

governance for economic policy reforms

Public

Participation Transparency

Resource

Boom

1 3

2

29

SPEED helped formalize a participatory

system for formulating laws and regulations

There are now more than 15 organizations and their networks engaged in

supporting the draft bill and ready to lobby the authorities to pass it

2010 2011 2012 2013

Assessed

attitudes and

capacities

for reform

Established

a public-

private

sector

working

group

Produced a

discussion paper

on Participatory

Approaches to

Policy Development

Completed

draft law

Mapped the

process for

getting law

approved

MoU signed by a

coalition of private

sector and civil

society

organizations

2014

Implemented

awareness

campaign, and

advocacy and

dissemination of

the draft

Identified

influential

champions

30

Key themes analysed: Dutch Disease

Absorptive capacity

Institutional capacity

SWFs

Fiscal management

Exchange rate shifts

Local Content

SPEED provided thought leadership on the

economic impact of the Resource Boom

Performed in-depth analysis

of various key sectors:

Labour markets

Tourism

Manufacturing

Agriculture

Competitiveness Roadshow 5 economists gave a series of seminars to discuss the

potential impact of the resource boom on competitiveness

Maputo Nampula Beira 31

Performed full

assessment of legal

framework for LNG in

Mozambique

SPEED contributed to increased

transparency in the extractive industry

Provided assistance to the

EITI Secretariat to

produce 7,000 copies of a

booklet (in English and

Portuguese) containing a

summary of the EITI

report

100 copies of the full

report were produced and

distributed throughout the

country

Mozambique was declared

“EITI compliant”

on

26 October 2012

Analysed, commented on

and/or contributed to:

Mining Law 2014

Draft Mining Regulations 2014

Mining Tax Law 2014

Petroleum Tax Law 2014

Petroleum Law 2014

Draft Petroleum Regulations 2014

Decree for Areas 1 and 4

Draft Decree on Transfer Pricing

2014

32

SPEED explored how Mozambicans can

benefit from the Resource Boom

Reviewed all local content provisions in

Mozambican legislation

Drafted the terms of reference for a

Local Content Task Force (LCTF)

Presented at several Local Content

Workshops

Performed an in-depth assessment of

policy options and provided

recommendations

Local Content Cabo Delgado

Sustainable

Development Forum

Supported the development of the

CDSDF through a grant to IUCN

Performed stakeholder mapping and

analysis

Supported engagement with various

stakeholder groups in Cabo Delgado

Produced a Lessons Learned report

to inform future initiatives

Pemba workshop participants,

September 2014 33

SPEED enhanced transparency through

communication

Developed a C4PC

strategy outlining a

framework to influence

decision makers to take

actions that accelerate

policy reform

implementation

SPEED C4PC

strategy in action

Provided economics training course for

journalist to:

- enhance the quality of economic, financial and

business reporting in Mozambique

- improve the role of media organizations in

monitoring economic policy-making and the

government’s management of finances

Benefited 15 journalists based in Maputo, Beira and

Nampula

34

SPEED supported initiatives to promote

Ethics in Mozambique

Supported the Minister

of Justice to conduct an

analysis of the anti-

corruption package and

publish a book on the

Public Probity Law

Supported Mozambique’s

Institute of Directors by

financing the preparation

and implementation of a

Code of Ethics in

Mozambique

Assisted the Attorney General's Office to develop its

strategic and operational plan

Assisted the PGR to develop four proposals with detailed

input-based budgets - enabled the disbursement of over

US$ 6 million in external funding

35

The End