Finland's relations and development cooperation in Mozambique
Finnish development cooperation in Mozambique promotes good governance and supports the achievement of better learning outcomes in primary and secondary schools. Girls and equality are key priorities.
Even though economic growth has been relatively rapid in Mozambique in recent years, almost half of the population live in poverty. Mozambique has abundant natural resources but the country is only beginning to exploit them. Given that the current plans will materialise, the utilisation of natural gas may bring significant prosperity to Mozambique in the coming years.
Rapid population growth, shortage of jobs, impacts of climate change and growing regional and rural-urban inequality deteriorate the prospects for the future. Conflicts in the northern province of Cabo Delgado, the consequences of the COVID-19 pandemic, and centralisation of political power pose challenges to development in the next few years.
Until now, the long-term relations between Finland and Mozambique have focused on development cooperation. Since the 1970s, Finnish support has been directed, for example, to the development of Mozambican infrastructure, agriculture and forestry, health sector, good governance and education. Together with the donor community, Finland supports Mozambique in reaching the UN Sustainable Development Goals (SDGs).
In the next few years, Finland aims to expand and deepen its relations in Mozambique. Finland wants to double its trade with African countries in 2020–2030, and efforts will be made to significantly increase investments of Finnish companies in Africa and of African companies in Finland during the same period.
Finland’s strategic goals in Mozambique are described in the Country Strategy and the Country Programme. The latter focuses on development cooperation. According to the Country Strategy, in 2021–2024, Finland will support peacebuilding and conflict prevention, invest in youth and gender equality, strengthen institutions and promote economic partnerships.
Outcomes of Finland’s development cooperation with Mozambique in 2021–2024
In 2021–2024, Finland will direct the majority of its bilateral funding to measures that support education and develop good governance. Bilateral funding will also be used to advance the rights of women and girls and to promote opportunities in the private sector. The proposed support to Mozambique in 2021–2024 is EUR 58 million.
In the previous programming period in 2016–2019, Finland concentrated on developing basic education, strengthening democracy development and good governance, and improving small farmers’ food security.
Finland's development cooperation in the education sector
In order to improve learning outcomes, Finland’s support will be used for teachers’ and principals’ basic and further training and for ensuring the availability of learning materials especially in early grades. The administration of the entire education sector and the transparent management of the sector will be improved. In future, special attention will also be paid to sexual and reproductive health.
Expected outcomes: Better learning outcomes for children and youth in primary and secondary education
- Higher retention rates for girls
- Teachers’ and principals’ improved performance
- More efficient administration in the education sector
Ongoing programmes and projects
- Support for the education sector via the Education Sector Common Fund (FASE), totalling EUR 28 million in 2020–2024.
- Support for improving in-service teacher professional development via World Bank’s COACH initiative, totalling EUR 3 million in 2020–2024.
Finland's development cooperation to support good governance
Finland's development cooperation is used to support Mozambican authorities in broadening the tax base and improving the management of public finances based on high-quality research data. Decision-makers’ competence in the management of natural resources will be strengthened; support for the development of the social protection mechanism is being prepared.
Expected outcomes: Central institutions enhance gender equality and resilience
- Strengthened public finances
- Social protection mechanism supports the country’s resilience and capacity to respond to crises
- Institutions supporting accountable governance
Ongoing programmes and projects
- Support for decision-making, phase 2 (Inclusive Growth in Mozambique, IMG II), totalling EUR 2.6 million in 2021–2024
- Strengthening democratic institutions in managing natural resources, phase 2 (DEMO II), totalling EUR 2.8 million in 2021–2023
- Support for social and economic research, totalling EUR 2.4 million in 2019–2022
- Support for Public Revenue, Expenditure and Fiscal Decentralization Enhancement and Reform programme (PREFERA), totalling EUR 2 million will in 2020 and 2022
Highlights of the Results Report 2022
The economy of Mozambique continued to recover due to relatively good performance in the agriculture and service sectors as well as increased demand for Mozambique’s key export commodities, such as coal and aluminum. The security situation in Cabo Delgado showed signs of improvement, but the humanitarian situation remained dire due to displacement caused by the conflict and by climate-related events, such as cyclones.
Almost 822,000 students in primary and secondary education were affected by the conflict and climate-related emergencies. Despite these challenges, more students were able to complete school, including girls in primary education. In addition, the gross enrolment of girls in lower secondary education increased to 42%, up from 37% the previous year. There was also an increase in the number of teachers graduating from teacher training institutions, from 3,800 graduates in 2021 to 6,300 graduates in 2022.
Work started on the expansion of the national child grants programme, benefiting 0–2-year-old children. By the end of 2022, almost 1,300 new beneficiaries were registered, many of them mothers under 18 years old and survivors of gender-based violence. Slightly more than 270 voluntary social workers and officers of the national social security institution were trained in issues related to child grants and care.
The Ministry of Economy and Finance has used research papers and analyses produced with Finnish support in the national planning and budgeting processes. The Tax Authority has expanded its electronic services. Furthermore, political decision-makers at the national and provincial levels are now better able to understand their oversight role in the sustainable and equitable use of revenue from extractive industries.
Finland’s partners of cooperation in Mozambique
Finland has both local and international partners of cooperation in Mozambique. The principal local partners are the Mozambican central government (Ministry of Education and Human Development and Ministry of Economy and Finance), research institutes, and civil society organisations.
The European Union is Finland’s most important reference group in Mozambique. As an EU Member State, Finland participates in the dialogue on topics relating to collaboration in a broad range of sectors from politics, human rights and commercial and trade relations to cultural matters, conducted with the Government of Mozambique and various actors in society. In addition, Finland explores opportunities to participate in the EU’s joint programmes in various sectors, including development cooperation.
Finland also supports economic and social development in Mozambique by providing funding for UN organisations and international development finance institutions. In addition, Finland provides needs-based humanitarian assistance especially via humanitarian organisations of the UN and Finnish civil society organisations.
Several Finnish civil society organisations support the development in Mozambican society in collaboration with the country’s civil society actors. At present, Finnish organisations support for Mozambique focuses on education, an enabling environment and questions related to working life.
Team Finland cooperation
During the programming period 2021–2024, Finland’s main objective is to develop commercial and economic cooperation alongside with the traditional development cooperation. The countries’ aim is to increase both direct trade between the countries and trade supported by Finland’s public sector, such as via Finnfund. Development cooperation supports the achievement of this objective, because it improves, for example the business environment.