The “Supporting the Policy Environment for Economic Development” Project (SPEED+), funded by USAID, assists the Government of Mozambique (GoM) in its policy reforms to expand markets, increase trade, attract investment, advance the agriculture policy framework, as well as the power and water policy framework. The project contributes to broad-based and inclusive economic growth and conservation of natural resources in Mozambique.
SPEED+ supports economic and structural policy reforms through technical assistance on policy reforms across four components: (1) agriculture, (2) trade, investment, business enabling environment, (3) power, water, and (4) biodiversity conservation. One of SPEED+’s main tools is political economy analysis prior to offering technical advice and recommendations. SPEED+ also conducts economic impact analysis of suggested policy reforms across components. The project provides advisory services on capacity building to improve public-private policy dialogue; strengthen implementation of government policies and regulations; and awareness of gender issues and integration across components.
As a subcontractor to DAI, Nathan leads the Trade and Investment component; provides targeted advisory services in agriculture, power, water and biodiversity components; and conducts economic impact assessments of proposed reforms.
Examples of SPEED+ activities
After supporting the GoM in ratifying the WTO Trade Facilitation Agreement (TFA), Nathan continues to support the National Trade Facilitation Committee (NTFC) to implement WTO commitments. As multiple TFA provisions require improving the availability and publication of information about cross-border procedures and practices, the project is assisting the NTFC in establishing a National Trade Portal. Also in the Trade Facilitation sphere, the team also supported the baseline assessment of Mozambique’s regulatory framework for National Quality Infrastructure (NQI) and technical barriers to trade (TBT) including the TBT Enquiry Point, and the development of a roadmap for reform.
The Ministry of Industry and Trade (MIC) has requested SPEED+ to assist with the design of a Trade Policy and Strategy for the period 2017- 2021, which establishes a framework for the use of trade as a tool for economic growth and job creation. The team has completed the fieldwork, carrying out consultation meetings country wide with Provincial Government, Municipalities, private sector and donors. The team is currently drafting the strategy and will also support regional validation workshops in Maputo, Beira, and Nampula.
In order to leverage the opportunities offered by the African Growth and Opportunity Act (AGOA), Nathan developed Mozambique’s first AGOA Utilization Strategy. The draft AGOA strategy includes 21 recommendations for improving awareness of AGOA, increasing the competitiveness of specific sectors, and exploiting the benefits granted to goods made in Mozambique for the U.S. market.
Nathan also conducted an Assessment of Nacala Corridor and Port Performance study to report on transport, logistics, and production bottlenecks along the Nacala Corridor, and provide recommendations for improvement of the unused potential of the corridor that could lead to the development of the region’s economy. The Nathan team worked with CDN-CEAR, the general freight railway and port concessionaire, and reported to the main counterparts at the Ministry of Transport and Communications (MTC), and the Ministry of Industry and Trade (MIC).
To provide an overview of issues within the Power Africa framework and to identify areas for support, Nathan also conducted a nationwide power sector scoping study, which resulted in the development of a work plan. Guided by the study and the work plan, the team helped facilitate the establishment of a regulatory environment, which promotes increased generation and distribution, including new connections, of electricity. The team worked closely with USAID, the GoM, and other donors to identify specific reforms or transactions, which link to Power Africa’s goals of fostering increased generation and/or connections and an improved policy environment.
Nathan also completed an assessment of the capacity building needs of the Ministry of Energy and Mineral Resources (MIREME) Legal Department and other relevant government institutions. The team worked with counterparts and several consultants to develop a targeted training for MIREME’s legal department, staff from the Independent Energy Regulator (ARENE), and several attorneys active in the power sector, to support the development of a shared understanding of common terms, principles, and purposes in this new area of IPP law and regulation.
SPEED+ also seeks to revitalize and reform Mozambique’s once flourishing Cashew sector; in particular, the team is analyzing the economic effects of the cashew export tax and translating those impacts into a draft Cashew Law. In supporting this effort, the team has drafted the Cashew Sector Reform Memorandum, which includes a gender analysis and Gender Checklist. The Reform Memorandum was approved by USAID and identified two priority areas for SPEED+ engagement: the review and revision of the Cashew Law and Regulation, and an economic analysis of the cashew industry in Mozambique, with a special focus on the impact of the current Cashew Law and Regulation (particularly the export tax) on the overall profitability and investment prospects of the sector.
Nathan has also provided support to the National Water and Sanitation Directorate (DNAAS) and the Association of Private Water Providers (AFORAMO) to implement Decree 51/2015 (Regulation for Licensing of Private Water Providers in the Supply of Potable Water). The team also assists in the promotion of private sector investment in the water sector to help meet the investment required for Mozambique to fulfill their commitment to Sustainable Development Goal 6 – Universal and equitable access to safe and affordable drinking water for all by 2030.
SPEED+ builds on the accomplishments of the Support Program for Economic and Enterprise Development (SPEED) Program, the Trade and Investment Program (TIP), and the Northern Mozambique Tourism Project (NMTP), all USAID-funded projects managed by Nathan.