After a decade with average annual economic growth registering above 7 percent, Mozambique saw a slowdown to 6.3 percent in 2015.LNG investments are expected to shape the recovery with growth projected to reach 6.9 percent by 2018.
To increase private sector participation in the development of infrastructure, the government has established a PPP framework and, in 2011, passed several new laws pertaining to private investment in infrastructure and PPPs. These were aimed at bringing greater contractual uniformity and a new wave of PPP projects in infrastructure and include a PPP law, the Law on Large Scale Projects (LSP) and the Law on Company Concessions (CC). These laws establish the guidelines for the award process, implementation and monitoring of a PPP and seek to attract investment in infrastructure.
The Ministry of Finance houses a PPP Unit responsible for the evaluation and approval of projects that involve the concession of a public asset. The unit, together with the regulatory authority, provides oversight and supervises projects, however, it currently appears to play a limited role in the facilitation of projects.
While the government of Mozambique has implemented a number of PPPs (TRAC, the ports of Maputo, Beira and Nacala, and the Ressano Garcia, Sena and Machipanda, and Nacala railways), these were not structured within an established PPP framework.
Most PPPs reached financial close pre-2013 and were in the transport sector. More recent PPPs include projects in the energy sectors: Kuvaninga Energia power plant (2013) and Ressano Garcia Gas-Fired Plant (2014).
The African Development Bank is currently analyzing the potential development and operation of the Mapai Dam through the PPP model, in addition to other investment options aimed at improving the climate resilience of the Limpopo Basin, including hydropower schemes, irrigation development, and secondary economic benefits from activities such as fisheries and tourism.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.
Delegated management of urban water supply services in Mozambique encountered a string of difficulties soon after it was introduced in 1999, but in 2007 a case study revealed that most problems had been overcome and the foundations for sustainability had been established. The government’s strong commitment, the soundness of the institutional reform and the quality of sector leadership can be credited for these positive results. Donor support for investments and institutional development were also important. Results reported here are as of the end of 2007.
A Study for the UK Department for International Development (DFID)
This report was produced by Cambridge Economic Policy Associates (CEPA) as part of a wide-ranging research programme funded by the UK Department for International Development (DFID) that explores the factors constraining the provision of private finance to support infrastructure investment in DFID’s focus countries.
This report provides an overview of the market for infrastructure finance in (focusing on economic infrastructure sectors: energy, transport and water) using evidence gained from 11 consultations held with stakeholders (in the period December 2014 to February 2015) and complementary desk-based research.
The study provides background on the key policy reforms implemented by the Government of Mozambique (GoM) in an...
This study is a product of the Africa Infrastructure Country Diagnostic (AICD), a project designed to expand the world’s knowledge of physical infrastructure in Africa. The AICD provides a baseline against which future improvements in infrastructure services can be measured, making it possible to monitor the results achieved from donor support. It also offers a solid empirical foundation for prioritizing investments and designing policy reforms in Africa’s infrastructure sectors.
The focus of the AICD country reports is on benchmarking sector performance and quantifying the main financing and efficiency gaps at the country level. These reports are particularly relevant to national policy makers and development partners working on...