Linking Financing for Development with Sustainable Development Mainstreaming in Mozambique

Apr 21, 2017

Mozambique needs unprecedented amount of financial resources to achieve the targets of SDGs

How will the Sustainable Development Goals (SDGs) be financed in Mozambique?

The rollout of this all-encompassing ambitious agenda has started in Mozambique. Yet, this is the question that must be answered as it is evident that the country must be ready to mobilize the enormous amounts of resources needed to implement the SDGs.

The Government of Mozambique with the support of the UN System in the Country, particularly, the United Nations Development, has embarked on developing an Integrated National Financing Framework (INFF) to support cohesive nationally owned sustainable development strategies. This is line with the Addis Ababa Action Agenda (AAAA), the strategic recommendation from the Third International Conference on Financing for Development held in Ethiopia in 2015.

This agenda emphasizes the importance of INFF to support cohesive nationally owned sustainable development strategies.

In response to AAAA which encourages countries to formulate INFF to link development finance with SDGs, UNDP has developed a tool to support countries in this endeavour - the Development Finance Assessment (DFA). Currently, 12 countries have completed DFA (or underway), including Mozambique as the first country in the African continent which spearheaded this initiative last year. Currently, other 12 countries are considering initiating DFA. 

In taking this agenda further, Mozambique Ministry of Economy and Finance (MEF) organized a seminar in July 2016 to launch the process of DFA. Since then, various flows of development finance and its regulatory environment have been analysed under the leadership and supervision of an Oversight Team (OT), with cross sector representation including the Prime Minister Office; MEF’s National Directorate of Cooperation, National Directorate of Planning and Budget, National Directorate of Treasury and Directorate of Economic and Finances Studies; the Ministry of Land, Environment and Rural Development; Mozambique Central Bank and UNDP. The OT oversees the process of DFA and ensures the process of validating recommendations and roadmap implementation for results.

A follow up DFA intermediate workshop took place on 20 April 2017 in Maputo, showcasing the importance of DFA in Mozambique, with the presence of responsible national figures in Education, Health, Labour and Social Security, Industry and Commerce, Mineral Resources, Statistics, Private Sector Investment, among others. Over 20 bilateral and multilateral development partners participated in this workshop, and reflected on the need of articulate and sustainable public finance management, both short-term and long-term, to address the issues of development challenges.

Ms. Marcia de Castro, UN Resident Coordinator and UNDP Resident Representative underscored that Mozambique needs unprecedented amount of financial resources to achieve the targets of SDGs and partnership building is essential in this effort.  

“Creating an enabling environment for the achievement of 17 development goals set in the global development agenda, by establishing national strategies fundamental to mobilize resources from various financial means is a complex task. I am convinced that with the commitment of all stakeholders, the Government sectors, development partners, the private sector, the civil society organizations, we can continue this dialogue to achieve this enormous task,” pointed out Ms. Marcia de Castro, speaking at the workshop.

UNDP consultant and DFA team leader, Mr. Nelson Stratta, noted that “Mozambique has various public finance instruments for planning and budgeting, yet these planning and budgeting instruments need to be well integrated coherently under strong national leadership. The aim of the INFF is precisely to support to support those efforts.

DFA provides data and analysis on trends in financing for development and promotes dialogue on how institutions and systems could be adjusted to ensure that development finance is coherently integrated by the whole-of-government and aligned with national development priorities. This alignment is a complex task that the Government should address in the short, medium and long term plans, and undertake phased implementation approaches to properly manage overall expectations of development results.

The MEF and OT target to finalize the DFA document by this July for the validation of recommendations which may lead to the development of new integrated policy frameworks that seek greater consistency among various financial flows. The recommendation may also propose a new structure for political dialogue between Governments and its partners. The DFA can also contribute to the restructuring of government institutions to ensure better coordination and alignment.