In order to reduce the poverty incidence , according to its Action Plan for the Reduction of Absolute Poverty for 2006-2011 (PARPA II) the Mozambican government has prioritized several fields of intervention:, the improvement of macro-economic and financial management, the human capital, agriculture, , education, health and basic infrastructures, and governance . within this context the improvement in the provision of public services and the reform of the public administration are major challenges. Decentralization and the local development in particular the rural development has been understood as an essential and timely instrument to promote development throughout the country.

The ART PAPDEL Programme in Mozambique is based on Government prioritization and focuses mainly on Local Economic Development (LED). It aims at complementing and strengthening the PNPFD (National Programme for Decentralized Planning and Finance already in place , by integrating the LED component into local development plans, strengthening the capacities of administrations and relevant LED actors at all levels, improving territorial planning in order to enhance participative and competitive human and economic development and promote tools and methodologies to foster the transfer of knowledge between the different stakeholders at local, national and international levels in all thematic areas contributing to LED (local Economic Development) processes.

The ART PAPDEL Programme aims at developing LED capacities at all levels and has the following objectives:1. to establish and strengthening the Local Economic Development related development institutions such as LEDAS (Local Economic Development Agencies); DPDR- Departments for the promotion of the Rural; incubators companies and others; 2. Insertion of the LED into local strategic planning; 3. Promotion and support to innovative business initiatives; 4.Establishment/strengthening of national and local coordination mechanisms; 5.Development of a LED Knowledge management system at ;; Education for Development through the establishment of a LED master’s degree and its mainstreaming in relevant courses and the promotion of international cooperation (South-South, South-North).

ART PAPDEL carried out its preparatory assistance phase in 2008 and began its implementation phase in 2009, covering 4 pilot provinces: Cabo Delgado, Gaza, Inhambane and Nampula, in 16 districts and 10 municipalities. Depending on the outcomes and availability of resources the Programme will gradually cover all districts and municipalities of the 4 provinces. However, it will cover the entire country in the insertion of the LED approach into district and municipal planning.

Resource Mobilization and Execution

As for financial implementation, the Programme mobilized in 2009 a total amount of 1,577,140.76 and executed a total amount of 1,233,863.66, from which 773,391.26 were directly executed by the government. The financial execution per province was 99% in Nampula; 99% in Cabo Delgado; 82% in Inhambane; and 59% in Gaza.

Programme at a Glance

Strengthening of LEDAs and DPDRs

► Assessment of the LEDAs and DPDRs throughout the country, applying common diagnosis templates: the data collected allowed the identification of the following priority needs: support for the formulation of the Strategic District Development Plans (PEDD); redefinition of statutes in order to guarantee greater participation by national and local stakeholders; strategic reorientation towards LED; and improvement of the capacity to establish national and international partnerships. ► Strengthening of 4 LEDAs and 5 DPDR in Cabo Delgado, Nampula, Inhambane, and Gaza. ► Establishment of agreements between the LEDAs of Nampula, Inhambane and Gaza and the DPDRs, in order to provide to the LEDAs the financial resources needed to jointly undertake LED activities.

Promotion and support of business initiatives and incubators

► Signature of a 40,000 USD agreement with the Institute for the Promotion of Small and Medium Enterprises (IPEME) for the establishment of business incubators and capacity building on LED intended to the IPEME.

Mainstreaming of the LED into development plans

► Implementation of activities to develop the mainstreaming of LED’s methodology in the DPDRs and ADELs, in collaboration with the PNPFD(National Programme for Decentralized Planning and Finance).

Establishment of Local coordination mechanisms

► Establishment of the Provincial Working Groups (PWG) of Nampula, Gaza and Inhambane which include the state institutions involved with LED, the civil society and the private sector. ► Creation of Working Groups in 11 Districts (DWG) out of the 14 selected, which include the district governments, the LCCs and the civil society.

Implementation of strategic impact projects

► Assessment of 21 projects and approval of 9 of them. ► Comprehensive implementation throughout 2009 of 3 of the approved projects: organization of the entrepreneurial fairs of Massinga in the Inhambane Province, Mozambique Island and Memba in the Nampula Province.

Training activities

► Organization of 11 training sessions on elaboration of viability studies for income generating projects, local economic development, business planning and management, budgetary and organisational management and the provision of licenses for small scale construction activities; involving 608 members and representatives from the DPDRs, LEDAs, PWGs and DWGs, provincial and district governments, Local Consultative Councils (LCC), district services, beneficiaries of the Local Initiative Investment Budget (OIIL), associations, local constructors, producers and artisans.

Gaza Province

Strengthening the LEDAs, DPDRs and Working Groups

► Restructuration of the Gaza Local Economic Development Agency (APDG) and assistance for the elaboration of its 2009-2013 Strategic and Operational Plan. ► Technical assistance in the formulation of an institutional agreement that would results in 94,789.90 USD for the APDG. ► Organization of training sessions in project management and development of viability studies, involving 33 members of the APDG and the DEL Provincial Working Group (GTD). ► The DPDR was equipped with computer and office furniture and a Local Economic Development advisor was made available.

Insertion of the LED approach into local strategic planning

► Organization of several capacity building sessions: one for the DPDR and two for the Manjacaze and Chokwé District Working Groups on identification of potentialities and business opportunities, LED vectors, value chains and territorial marketing; and one for the Provincial Working Group and the APDG on local economic development, attended by 32 participants; ► Analysis and revision of the Manjacaze District Strategic Development Plan (PEDD). ► Organization of technical sessions with the Government Institutional Programme (PCIG) concerning the technical and methodological aspects of inserting the DEL approach into the PEDDs, particularly in the Manjacaze district.

Establishment of Local coordination mechanisms

► Establishment of the Provincial Working Group, integrated by 33 members. ►Establishment of the District Working Groups of Mandlakazi, integrated by 23 members, Chókwè with 25 members and Bilene with 13 members. ► Organization of 5 meetings to promote the ART PAPDEL Programme, two in Xai-Xai (Provincial Government and GTP meetings) and one in each of the other districts.

Implementation of strategic impact projects

► Identification and implementation of baseline and viability studies for 12 impact projects in the fields of construction and rehabilitation of markets, small industries for fruit and vegetable processing, irrigation systems and agricultural fairs. ► Identification of 2 projects to be financed: final construction of the Xilembene market in the Chókwè District and rehabilitation of the Central Market in the Guijá District.

Nampula Province

Strengthening of LEDAs, DPDRs and Working Groups

► Provision of a computer and office furniture to the LEDA of Nampula (ADELNA); capacity building on LED and territorial marketing of 4 of its technical personal and executive director. ► Support to the ADELNA on the elaboration of the methodology for inserting the DEL approach into district planning and 5 methodological guides on territorial marketing, viability studies and projects, financial management, technical assistance and capacity building, and value chains.► The DPDR was equipped with computer and office furniture and a LED advisor was made available

Insertion of the LED approach in local planning

► Capacity building of 25 officials from the Districts of Eráti and Lalaua on validation and quantification of DEL vectors. ► Identification and analysis of 5 DEL vectors: corn and cassava for the Eráti District; cotton, sesame and corn for Lalaua District.

Promotion and support to business initiatives

► Organization of capacity development sessions on elaboration of viability studies for income generating projects for 17 representatives from the provincial government and beneficiaries of the OIIL Initiative; 5 district representatives and 4 members of the LCC of the Nacala-a-Velha District; and for 17 beneficiaries of the OIIL and 5 officials of the Murrupula District. ► Consolidation of 7 MERAs (Associated Rural Micro Enterprises) in production of local materials through capacity building of 32 entrepreneurs and workers from Eráti, Meconta, Mecuburi, Memba and Ribaue Districts. ► Capacity building to representatives from emerging local economic initiatives: 52 local entrepreneurs from Erati, Lalaua and Memba districts; 6 extensionists (Ministry of Agriculture liaison and field officers?) and administrative personal from the Lumbo Millennium Village; 25 entrepreneurs from Lumbo and 15 young professionals from the Mozambique Island Association of Tourist Guides.

Establishment of Local coordination mechanisms

► Establishment of the Provincial Working Group and the District Working Groups of Eráti and Mozambique Island, which include representatives from the District Governments, the civil society organisations and the private sector. ► Creation of 5 Thematic Sub-Groups on value chains, financing, technical assistance to the productive sector, business environment and market information, which include 80 members (representatives of the Government, civil society and the private sector). ► Organization of 9 meetings of the Thematic Sub-Groups: 3 of the value chains, 2 of the business environment and 2 of the financing, while the other Sub-Groups held one meeting each.

Implementation of strategic impact projects

► Organization of the entrepreneurial fair of Mozambique Island, with the presence of 8 groups of exhibitors and 2,200 visitors. ► Organization of the economic fair for agriculture and fishing of Memba, which involved 35 groups of exhibitors and around 1,500 visitors. 600 of the participants benefitted from the subsidised sale of inputs for agriculture. ► Launch of the implementation of a project to build a market place in the Namiroa Administrative Post (Eráti) and to rehabilitate the market place in the Mossuril District Capital. ► Formulation of a project to build a Tourist Information Counter in Mozambique Island.

Inhambane Province

Strengthening of LEDAs, DPDRs and Working Groups

► Strengthening of the Inhambane Economic Development Agency (ADEI) and establishment of a 110,773.88 USD financial agreement. ► Training by the DPDR of 3 technicians of the ADEI in financial management (setting up of accounts). ► Formal presentation of the ADEI to the District Governments of Inharrime, Massinga and Morrumbene. ► Organization of coordination meetings between the DPDR and the executive management and presidency of the ADEI. ► The DPDR was equipped with computer and office furniture and a LED advisor was made available.

Promotion and support to business initiatives

► Assessment of the training and capacity building needs of the OIIL beneficiaries by the DPDR and production of specific materials. ► Capacity building of local stakeholders and beneficiaries of the OIIL on elaboration of viability studies for income generating projects, through the DPDR: 143 in the districts of Massinga (62), Morrumbene (51) and Inharrime (30).

Establishment of local coordination mechanisms

► Establishment of the Provincial Working Group (PWG). ► Creation of the District Working Groups (DWG) of Morrumbene, integrated by 18 members, Inharrime, integrated by 45 members and Massinga, integrated by 30 members, representing the district administration and services for economic activities, associations of producers, trade unions, LCCs, among others. ► Establishment of 3 Working Sub-Groups in the Districts of Massinga, Inharrime and Morrumbene.

Implementation of strategic impact projects

► Organization of the Massinga economic fair (5- 9 August 2009) promoted by the district government, the DPDR and LEDA of Massinga to promote the products, techniques and services offered by the district, create commercial exchanges between producers, suppliers and consumers and promote the development of trade as main vector of LED. 300 exhibitors from Massinga District, Inhambane Municipality and Maxixe participated to the fair and certificates and prizes for the best stands were delivered by the promoters.

Cabo Delgado Province

Strengthening of LEDAs, DPDRs and Working Groups

► Support to the legalization of the Cabo Delgado Local Economic Development Agency (ADEL-CD) and negotiation of the financial agreement (currently under discussion). ► The DPDR was equipped with computer and office furniture and a LED advisor was made available.

Insertion of the LED approach in local planning

► Organization of the seminar “Integration of DEL and cross-cutting themes into the strategic and operational district planning” promoted by the DPDR, with the participation of public and private partners. ► Presentation of the ART PAPDEL Programme at the seminar. ► Production of matrix and a working plans the EPAPs (Technical Provincial teams from the PNPFD) and ETDs (Technical district teams from the PNPFD) training?. ► Training of EPAP members for the elaboration of the 2010 Economic and Social Plan and District Budget (PESOD), in order to ensure that OIIL funds are used to finance projects related to value chains of endogenous products and territorial potentialities.

Promotion and support to business initiatives

► Capacity building for local governments and OIIL beneficiaries on elaboration of viability studies. ► Development of a baseline survey for the development and the provision of licenses for small scale construction activities in 10 districts Mecufi, Quissanga, Pemba-Metuge, Chiúre, Namuno, Ancuabe, Muidumbe, Mueda, Mocimboa da Praia and Palma. ► As a result of the aforementioned, publication among the district governments, municipalities and associations of artisans and constructors of the regulations (Ministerial Diploma no. 132/2009, of 11 June) for the setting up of small scale construction activities. ► Support to the delivery of licences to one individual building micro-company and 8 cooperatives of small constructors. ► Capacity building on LED, business plans and management for 80 representatives from the District Secretariat and Services for Economic Activities, OIIL beneficiaries and members of the LCC of the 16 districts of the province. ► Capacity building for 55 members of cooperatives and micro-business on budgeting, organisational management and provision of licenses for small scale construction activities in the districts of Chiúre (12), Namuno (16), Quissanga (14) and Muidumbe (13). ► Development of a capacity building module on business management for the regional seminars organized for OIIL beneficiaries, together with Manica’s DPDR, LEDA, Higher Polytechnic Institute and National Professional Training and Employment Institute.

Establishment of Local coordination mechanisms

► Establishment of District Working Groups in Mecufi, Pemba Metuge and Quissanga, in partnership with the PPFD and Helvetas-Mozambique, based on the restructuring of 3 District Consultative Councils and the introduction of the DEL Working Groups. ► Training on operational management of the working groups of 153 members of the LCC and 23 members of the District Technical Teams and District Governments.

Implementation of strategic impact projects

► Completion of baseline studies and design of 3 impact projects: bread production in the district of Pemba-Metuge, establishment of a construction unit in Quissanga and processing and conservation of fish in Mecúfi (under current implementation). ► Capacity building for the beneficiaries, support for the legalisation of the activity and procurement of equipment are currently been settled.

Implementation of a LED knowledge management system

► Development and/or improvement of the provincial, district and municipal web sites, including the LED thematic. ► Restructuring of the Provincial Government portal in Cabo Delgado and current organization of its launch at local level.

Results and Activities at the National Level

Implementation of national coordination mechanisms

► Establishment of the National Coordination Committee (CNC), chaired by the Minister of Planning and Development and integrated by representatives from the Ministries of Foreign Affairs, Education and Culture, Science and Technology, State Administration, Finance, Agriculture, Industry and Trade, Public Works and Housing, Tourism, Fisheries and Labour, as well as from UNDP and the Spanish Cooperation. ► Approval by the CNC (November 2009) of the Programme Document of the ART PAPDEL during an official ceremony chaired by the Minister of Planning and Development. ► Organization of a meeting (26 February 2009) of the Inter-sector Commission on LED (GTN-CIDEL), chaired by the National Director for the Promotion of Rural Development and attended by more than 70 participants: national directors, cooperation partners, UNDP, diplomatic missions, civil society’s organisations, academic institutions, private sector, REDEL, LEDAs, DPDRs and DNPDR. ► As results of the meeting, creation of the National Working Group, integrated by representatives of relevant ministries and state entities, higher education institutions, economic associations, the OTM (Mozambique Labor Organization), the ANAM, the FDC (Foundation for the Community Development), among others. ► Launch of the Handcrafts Working Group during a seminar jointly organized with the DNPDR (12 October 2009) and attended by representatives of state institutions, international cooperation agencies, private sector, the Municipality of Maputo, associations of artisans and NGOs.

Establishment of the Programme’s Management system

► Formulation of the ART-PAPDEL 3 year PRODOC; Organization of the 1st ART PAPDEL National Planning Meeting (Nampula, September 2009); the drafting of its 2010 operating plan, and strengthen the ART PAPDEL team on LED, with the participation of the National Director for the Promotion of Rural Development, the Nampula Provincial Planning and Finance Director, UNDP and representatives of the DPDR’s of Nampula (7), Gaza (2), Inhambane (3), Cabo Delgado (2) and Maputo (6).

Monitoring and evaluation

► DNPDR technical and financial Supervision missions to the 4 provinces (7-19 December 2009) with the purpose of ensuring the alignment of expenditure and implementation of the planned activities and providing technical assistance in financial management. Main findings resulted from the mission are: Cabo Delgado has implemented 99%, Nampula 99%, Inhambane 82%, Gaza 59% and the DNPDR 99%; and that there is an alignment between the expenditure and the implementation of activities,.

Development of the knowledge management strategy

► Development of the “ART-PAPDEL Operating Manual” as the methodological instrument to be used by all the stakeholders involved in the Programme’s implementation.

Support to the REDEL

► meeting to strengthen the REDEL (LEDA national Network) (25 February 2009), attended by 35 representatives from the LEDA´s, DPDRs and the DNPDR. ► Establishment of a 10,000.00 USD financial agreement with the REDEL, for the implementation of LEDAs initiatives related to knowledge management, promotion of good practices, exchange of experience, institutional management, coordination with local governments and private sector.

Mainstreaming of the LED approach

► establishment of a master degree course on LED and establishment of a Working Sub-Group for the master’s, integrated by the Ministries of Planning and Development, Education and Culture, the Eduardo Mondlane University (Faculties of Economics, Agronomy and Forestry Engineering), the Higher School of Rural Development and Entrepreneurship and the Polytechnic and Catholic Universities. ► Organization of 5 meetings of the LED Working Sub-Group, with the Ministry of Education, representatives from ART International, decentralized partners from Extremadura and Andalusia (FAMSI), the UEM (FAEF and ESUDER), São Tomás University and the Polytechnic University, the DNPDR, among others. ► Insertion of the LED approach into various university faculties.

Results and Activities at the International

Level

Participation in two international events

► To ensure appropriation of the ART mechanism concept and instruments two technicians one from the DNPDR and the DPPF of Nampula working for the ART PAPDEL and the UNDP Mozambique ART focal point participated to the ART’s methodology (Seville, 22-26 June 2009) International Seminar ► Participation in the ART International Forum: 4 Years and 10 Results (Seville, 25-27 of November 2009) of a Mozambican delegation integrated by the Mozambican Ambassador in Spain, UNDP Mozambique Resident Representative and UNDP Mozambique ART focal point, the Economic Advisor to the Minister of Planning and Development, the Deputy National Director for the Promotion of Rural Development, the Thematic Official for Networks, Agencies and Working Groups and the CTA .

Decentralized cooperation missions

► mission to Mozambique, integrated by representatives of FAMSI, the AEXCID, ART International and ART Seville with the purpose of monitoring the Programme’s implementation, enhance resources mobilisation and develop the basis for the establishment of partnerships with various Mozambican institutions. ► technical assistance mission of the AEXCID related to fair trade for partnerships and identification/formulation of business and training initiatives in the Gaza Province to be funded by EC. ► mission to 4 districts of the Province of Gaza (Mandlacaze, Guijá, Chókwè and Bilene Districts) by the AEXCID, together with technicians from the DNPDR and the DPPF (22 June-11 July 2009) with the purpose of identifying sustainable impact co-financing projects related to the business potential and value chains of the districts.

Consultancy mission on fair trade

► international consultancy mission to the Provinces of Nampula and Cabo Delgado and Inhambane in order to facilitate the coordination of commercial and economic relations between stakeholders from the North and South, and to identify exportable products that could be introduced into European markets through fair trade networks or conventional trade importers, develop a diagnosis of the potential production for fair trade and conventional trade in Mozambique, identify the initial capacity building needs of the producers, make recommendations for a medium and long term fair trade strategy and identify immediate impact actions.

Elaboration of the for EU funding

► Approval by the European Union of the first draft of the “Education for Development” project, which seeks to establish exchanges between Mozambican and European schools on the Millennium Development Goals thematic, during a 28 months period.

The Programme's Challenges for 2010

The dimension and complexity of the programme. to have a realistic planning in order to guarantee that priority activities will be carried out. In this context, the challenges for 2010 are to strengthen and increase the outreach of the DEL insertion into planning processes; continue and extend the implementation of projects with an immediate impact at local level and the promotion of innovative business initiatives. Also to develop greater coordination between ART PAPDEL and other DEL initiatives, to maintain the diagnosis of the ADEL’s and continue implementing the plan to strengthen them. Finally, to promote the establishment of business incubators in partnership with the IPEME (National Institute for Small and Medium Enterprises, the University Eduardo Mondlane (UEM), the National Institute for Professional Training (INEPF) and the Skills Development Centre.

Contacts

Ms. Naomi Kitahara, UNDP Country Director, : naomi.kitahara@undp.org

Ms. Gisela Carrasco, ART PAPDEL - Programme Officer, UNDP Governance Unit: gisela.carrasco@undp.org

Mr. Ivan Arizcurinaga Vasquez, ART PAPDEL Programme Chief Technical Advisor: ivovasco@gmail.com