A technician repairs street lighting in Chimoio, Mozambique.

Priority area Decentralisation and public finance Making public authorities more efficient

Mozambique's population is distributed sparsely across a large territory. It is therefore difficult for government institutions to maintain a presence at local level and deliver public services.

The government of Mozambique has launched a process of decentralisation, whereby responsibility is devolved to districts and local authorities. These local administrative units are not, however, yet capable of operating to a sufficiently high standard. Shortcomings are particularly evident in the field of financial management.

What Germany is doing

The aim of German development cooperation in this field is to support national, regional and local administrative units in applying the principles of good financial governance and to improve the quality of public services, particularly at local level. This means building capacities in the administrative units and boosting local authorities' own financial resources.

In order to increase transparency and prevent corruption, Germany is also supporting efforts to improve external auditing and internal financial and administrative controls. The court of auditors has, for instance, already been supported in conducting 5,000 audits. Also, 2,800 district officials and 600 local authority staff (30 per cent of them women) have received training in public finance, procurement and project management.

In selected local authorities, Germany is helping to establish and improve the social and economic infrastructure. Germany is also supporting efforts to help the country adapt to the impact of climate change.

Transparency in the extractive industries

With increasing money being invested in the extractive sector, the government of Mozambique faces the challenge of administering extractive revenues in a transparent way and using them to promote inclusive growth and poverty reduction. In 2010, it therefore joined the Extractive Industries Transparency Initiative (EITI). In 2012 it was recognised by EITI as a compliant country.

Through its development cooperation, Germany is advising the Ministry of Mineral Resources and Energy and also districts and local authorities in mining areas on improving management of the extractive sector.

The 2017 annual report of the Mozambican Court of Audit contained, for the first time, a special chapter on the extractive industry, which shows the origin and amount of parts of the revenues. All contracts relating to the extractive industries or complex public works projects such as roads or airports are audited by the Court in accordance with newly developed procedures.