ADF supports Public Sector Reform in Mozambique

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Tunis, 22 June 2005 – The African Development Fund (ADF), the concessional window of the African Development Bank (ADB) Group will help Mozambique improve the efficiency of  government services by providing institutional support to the country’s public sector reform.

To this end, the ADF Board of Directors approved in Tunis on Wednesday, a grant of 2.126 million Units of Account (UA*), equivalent to US$ 3.135 million, to finance the Institutional Support for Public Sector Reform in the country.

The project will contribute to the improvement of the governance environment and by so doing help to satisfy a fundamental condition for growth and poverty reduction. More specifically, the objectives of the project are to improve service delivery through decentralization and institutional restructuring and to enhance professionalism within the public sector.

The project has two components, namely:

  • The establishment of six One-Stop Shops that will contribute to improve service delivery through decentralization and institutional restructuring;
  • Training activities set up by the Higher Institute of Public Administration (ISAP) for the benefit of the managerial cadre within the public service.

Both components will enhance capacity building within the public sector and implement the government’s  public sector reform.

The One-Stop Shops’ component will primarily benefit citizens and companies as a result of reduced transaction costs and improved convenience. Decentralization of services will also reduce the present congestion of some services in the capital, Maputo, and therefore improve the overall working conditions and efficiency levels of civil servants. The main beneficiaries of the project’s training activities will be civil servants who hold executive positions at central and provincial levels.

The role of the public sector in poverty reduction is critical, especially in the efficient delivery of social services and in the creation of policy and institutional frameworks conducive to growth and employment generation. The Bank’s support will help improve the capacity, transparency and accountability of the public sector.

The Bank Group’s operations in Mozambique started in 1977. To date, the Group has committed a total of UA 782 million, equivalent to US$ 1.2 billion in 85 operations in the country.

Project Information Sheet

-  Sources of financing: ADF & Government

-  Estimated start-up date and duration: August 2005 for 36 months

-  Executing Agency: Ministry of State Administration (MAE)

-  Procurement of Goods and Services: All procurement of Goods and Services, consultancy and training will be made in accordance with the Bank’s Rules of Procedure for Procurement of Goods and Works.

1UA = US $ 1.47495 as at 01/06/05