Basic education and vocational training

The end of the civil war in 1992 opened the door to peaceful development in Mozambique.This development process received vigourous support from many development organisations.

Major progress has also been made in the field of education. The school enrolment rate for girls and boys has risen rapidly in recent years, while the illiteracy rate has visibly dropped. Despite this progress, however, the education system remains inefficient, a fact reflected above all in above-average repeat and drop-out rates.

Introduced just a few years ago with external assistance, the vocational training system is still weak and far from able to meet the need for trained skilled workers. It continues to require intensive support.

The German-Mozambican education programme hence supports the implementation of the national strategic education plan and helps to improve basic education and vocational training services.

Decentralisation to promote rural development

The fight against poverty in Mozambique is made considerably more difficult by the lack of expertise and capacity on the part of the public authorities at state and municipal levels, which are incapable of planning and controlling development processes efficiently and transparently.

In its second National Poverty Reduction Strategy for 2006 to 2009, Mozambique's Government highlighted the decentralisation of functions and responsibilities as an important element of good governance. The administrative districts of the country are seen as key actors for local development.

German development cooperation is promoting the strengthening of expertise in the three provinces of Inhambane, Sofala and Manica, and the establishment of a nationwide programme for decentralised planning and financing under the direction of the Ministry of Planning and Development (MPD).

Together with the partner, GTZ has begun planned and coordinated activities to encourage participation by citizens and promote the planning and implementation of development in these three provinces.

So far, 23 out of a total of 33 districts and a large number of local self-governing administrations have been given advice. Thus, a range of experiences already gained in the provinces can be integrated into national policy-making to serve also as a model for the future. Furthermore, the programme is also advising Mozambique's Court of Audit. In the first year alone, the number of audits carried out has been doubled.

The aim is to enable the districts and local self-governing administrations to use the resources available to them efficiently and transparently and by doing so, to promote development in the rural regions of Mozambique.

Economic reform and development of the market system

Despite remarkable progress in transforming the socialist economic and social order into a Western-style market economy, Mozambique still has many obstacles to overcome.
 
The investment climate is unfavourable and the institutional framework has serious shortcomings. The strategy developed by the German side to promote private sector growth hence has three core elements:

• macroeconomic advice for the central bank concerning the regulatory aspects of micro-financing (GTZ)
• capacity development and institutional support for the financial system, in order to improve access to banking services for micro, small and medium-sized enterprises (KfW Entwicklungsbank (KfW development bank))
• support in establishing and developing sector-specific regional associations for private enterprise in the Manica, Sofala and Inhambane provinces (GTZ)