Financing for Development - Mozambique takes an initiative on Development Finance AssessmentJul 18, 2016
The 17 Sustainable Development Goals (SDGs) with 169 targets agreed during the UN Summit for the Adoption of the Post-2015 Development Agenda in September 2015 is a global agenda that will shape the world in the next 15 years. The SDGs are ambitious transforming targets envisioned to drive the world towards a sustainable path.
For all the SDG targets to be achieved, however, the world is facing a considerable investment requirement. How to Finance the SDGs? This is the question that the Third International Conference on Financing for Development held in the Ethiopian capital of Addis Ababa in July 2015 was set to answer.
In September 2015 together with UNDP CO the Government of Mozambique participated to an event in Bangkok where countries in Asia-Pacific region shared their experiences on how to strategize financing for development towards the SDGs. The event organized by the UNDP Asia-Pacific Regional Centre was a good opportunity for knowledge sharing in the south-south region and this experience led Mozambique to decide to embark on a similar DFA exercise for developing its financing for development strategy.
It was against this background that the Government of Mozambique and the United Nations Development Programme (UNDP) on July 15, 2016 had an event to launch the Development Finance Assessment (DFA) in Mozambique a tool designed to assess opportunities and constraints in mobilizing development finance and align and integrate financial flows to the maximum extent possible within the development planning processes and national budgeting in a country.
“Like other countries, Mozambique is contending with the question on how to finance sustainable development. The tool we a relaunching today, the Development Finance Assessment is one of the ways Governments can better organize themselves to address this challenge”, said Ms. Marcia de Castro, UN Resident Coordinator and UNDP Resident Representative, speaking at DFA launching event.
“The DFA provide data and analysis on the trends in financing for development and promote dialogue on how institutions and systems could be adjusted to ensure that funding is integrated consistently across Government and aligned with the results of national development priorities,” Ms. de Castro told the audience consisting of senior Government officials from all sectors, development partners, civil society organizations and the private sector.
On its part the Government was keen by the launch. “Ths DFA is timely for Mozambique. We believe the results of this tool will provide substantial contribution as we develop strategies and financial resource mobilization policies which are necessary for the development challenges that the country is facing towards the implementation of Agenda 2030,” observed Ms. Maria Isaltina Lucas, the Vice Minister of Economy and Finance.
“The pioneering nature of this assessment makes its success depend on the collaboration and contribution of all stakeholders at all levels, in particular the government, development cooperation partners, civil society and the private sector,” she continued.
The Vice-Minister explained that Mozambique had decided to embark on concrete actions on how it could finance its commitment agenda under the SDGs framework, immediately following the Third International Conference on Financing for Development, that adopted the Addis Ababa Action Agenda (AAAA).
The Addis Agenda recommends that to exploit all potential sources of financing effectively and align flows with country priorities, governments will need to develop more comprehensive integrated national financing frameworks. It will be convenient to develop a holistic vision of fiscal finance planning and management systems that transcends traditional public sector budgeting. Governments will need to work with more strategic systems that are capable of providing decision makers with a comprehensive, panoramic view of all the options available (public and private, domestic and external) and knowledge to use them wisely. The emerging “dashboard” of development finance possibilities implies more complex comprehensive fiscal management systems and decision-making processes.
In light of the evolving development finance landscape and the historical decrease in the importance of ODA, Mozambique finance authorities have reiterated that ensuring stable financing is a fundamental strategy to materialize national development priorities.
DFA is an instrument to holistically map out a trend of various financial flows and diagnostic existing national strategy and instruments to inform decision makers how a country can be better placed to finance for development. The DFA recommendations can lead to the development of new integrated policy frameworks seeking greater coherence across financial flows. It can also propose new policy dialogue structures between governments and their partners. DFA can also contribute for the restructuring of government institutions to ensure better coordination and alignment.
The government of Mozambique and UNDP will continue and intensify the DFA in-country process, targeting to validate the outcomes of DFA in the next 6 months. If the time table is respected, Mozambique also plans to share some preliminary results during or at the margin of the second Global Partnership for Effective Development Co-operation (GPEDC) that will be held in Kenya in the end of November 2016, where financing for development will be one of the agenda items. The final outcome of DFA in Mozambique will be an important product for policy and intuitional reforms not only for the country, but also an example on how a model of financing for development can be undertake in Africa.