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Menstruation and Misery in Africa’s Mozambique 

Menstruation in MozambiqueMozambique, located in South East Africa with a population of 30 million people, has seen progress in reducing poverty. The poverty rate fell from 70% in 1996-1997 to 46.1% in 2014-2015. However, the rapid population growth has counteracted this improvement, leaving the absolute number of people in poverty relatively unchanged.

Notably, poverty has a more significant impact on women in Mozambique compared to men. Women face distinct challenges, with one of the most pressing issues being the management of menstruation due to their limited incomes.

The international poverty line is set at $2.15 per person per day, implying that a large part of the world is unable to fulfill basic needs related to nutritional and health security. Many women in developing countries find it exceedingly difficult to allocate their income to period management in the face of dietary and familial needs. In such a situation, the health and well-being of countless women are jeopardized due to an inability to access underwear, sanitary pads and soap. Menstruation in Mozambique continues to remain a severe challenge for poor women and young girls.

Need for Improvement

According to a 2021 research paper, less than 20% of schools across Africa (including Mozambique) provide basic services such as sex-separate facilities, water supply, doors with a lock and waste disposal bins, indicating the severe need for improvement.

The COVID-19 pandemic further exacerbated the problems associated with menstruation in Mozambique. Because of falling income and output, many women could no longer practice safe and hygienic menstrual management. The government supplied “dignity kits” in response to the problem. Such kits include washable menstruation pads, underwear, whistles and lights that help women suffering from period poverty.

“Fátima Hassan, a 16-year-old teenager, fled…to Pemba City with her mother to escape from violent attacks. Now living in a safe place, she was one of 300 women and girls who took part in a COVID-19 prevention and control session and received a female ‘dignity kit,’” UNFPA reports.

Between April 2019 and May 2020, the government of Mozambique and UNFPA distributed more than 16,500 dignity kits. Recent data from refugee camps in several low-income countries show a more satisfactory level in terms of performance.  Most women reported being satisfied with the menstrual services and physical facilities in Mozambique and Iraq. At the same time, less than half of the females in refugee camps in Cameroon, Malawi and South Sudan could say the same.

However, the divides between women and men still loom large in the nation’s fight against poverty.

For example, The National District Development Fund in Niassa was an important source for financing and investment in rural projects and initiatives. In allocating the funds, the project prioritized “agriculture rather than businesses, women rather than men and associations rather than individuals.” However, with time authorities were directing the scheme toward men and businesses, losing the rural and female-oriented focus.

Helvetas Mozambique

Helvetas Mozambique has been operating in Mozambique since 1979. Its focus has been on the northern region with a special focus on rural issues. The organization’s work includes building wells and increasing access to potable clean water for the local communities as well as improving agricultural efficiency and output.

The IDP Wash Project began through the efforts of Helvetas Mozambique. With support from UNICEF, the IDP Wash project spans across 11 communities in Cabo Delgado’s Ancuabe district, focusing on enhancing access to safe water, and sanitation and promoting hygiene in the well-being of the population.

In late 2021, the Marrupa host community witnessed the establishment of its first-ever water infrastructure—a concrete tower housing a 10,000-liter tank, powered by solar panels. This significant development, benefiting more than two thousand families, marks a collaborative effort toward sustainability, with the community pledging to maintain the system through contributions determined in upcoming Water Supply Committee meetings.

Looking Ahead

Menstruation in Mozambique is still a taboo subject. Continuing government efforts to provide dignity kits alongside more awareness could reduce the stigma surrounding menstruation in the country.

– Udyan Negi
Photo: Pixabay

How Gentrification Exacerbates Poverty

GentrificationGentrification can be described as the process whereby the character or demographic of a neighborhood is altered, typically through an influx of wealthier, more affluent individuals or businesses. This typically involves some sort of transformation of a location, through altering the infrastructure or amenities of the area. Whilst the development is commonly perceived as a positive activity, there are often disregarded spillover effects on the previous residents of the area, frequently low-income groups. More often than not, gentrification causes the displacement of poorer communities, thus generating wide inequality gaps and exacerbating poverty. 

Some argue that there are positive effects originating from gentrification. For example, as a more affluent demographic begins to infiltrate an area, crime rates tend to decrease, and homeowners can benefit from higher property values. As the increasingly wealthy move to an area, consumption will also typically increase, which benefits local businesses and generates additional job opportunities. Investment increases, due to increased construction of modern homes and large boulevards. Rapid development may occur as a result of increased investment, generating success for any given area, which is typically construed as a net positive for society. Others may argue that this is not the case. 

Gentrification in Developing Nations

Rapid development is highly sought after in any developing country, due to the exponential benefits to be reaped. Investment in capital and infrastructure is a major accelerator to development, typically leading to higher levels of GDP growth. However, the benefits of growth are not reaped equally, and rapid development can often be an opportunity for income and wealth inequality. 

In developing nations, where absolute poverty is already a prevalent issue, high levels of inequality and decreasing social mobility can act as a major barrier to poverty reduction. The displacement caused by gentrification can affect an individual’s access to basic necessities such as healthy food, education and health care. For those living on less than a dollar a day, gaining access to these amenities is more important than ever in poverty reduction efforts. 

Impacts of Gentrification: Mozambique and Brazil

Mozambique is a nation affected by a type of social polarization or rather a rich-poor divide. This is fortified by the dual socio-spatial structure of some of its regions — for example, Maputo, which is sometimes referred to as a segregated city. This originated in the colonial period in the 16th century, when the colonialists and the colonized were segregated, creating a harsh divide between society.

Socio-spatial patterning in divided areas may sometimes mean that amenities of a city are located at the center, typically surrounding more affluent areas and excluding those with low or no income. This results in the creation of densely concentrated areas of poverty. This social stratification increases the divides between different socioeconomic groups. Restricted opportunities and unbalanced wealth, compounded with reduced social mobility, create a cycle of intergenerational poverty.

Brazil is another area that has been impacted by gentrification. A type of area known as a ‘Favela,’ which translates to ‘slum’. This area is often found in the outskirts of Brazilian cities, more prominently in Rio. Favelas are known for their high-density, compact organization, but can sometimes be described as less than liveable, with conditions in these areas sometimes being dysfunctional and destitute. In this scenario, the increasing popularity of locations such as Rio has meant that many have suffered from displacement, being confronted with rent increases and forced evictions to higher-risk locations.

As a result, many previous residents may find themselves relocated to the outskirts of the city, suffering from worse conditions and less access to basic necessities. Once again, this exacerbates poverty for those already on low incomes, creating a cycle of intergenerational inequality. 

Policy as the Solution

Policy is the key to mitigating the negative consequences of gentrification. The main frameworks that could be implemented include managing rent affordability, preventing tenant displacement and strengthening participation from residents in general society. Gentrification can be a net positive when taking place under the correct conditions — that is, while ensuring that society’s most vulnerable are protected. To prevent the creation of wide inequality gaps, policy should aim to ensure economic equality of all residents, thus ensuring that low-income residents do not suffer and ultimately slip into poverty. 

– Hannah Bugeja
Photo: Flickr

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A Mine-Free Mozambique

A Mine-Free MozambiqueDecades of international relief efforts and humanitarian aid helped result in a mine-free Mozambique. The country had been “mine-contaminated” for decades as a result of years of fighting and civil war. The civil war resulted in land mines covering most of the land thereby creating hazardous conditions and impeding a normal quality of life for the country’s citizens. Mozambique declared independence from France in 1975, yet greatly struggled to strengthen and solidify its government and economy partially due to the vast amount of remaining inactivated mines posing threats across the country. Poverty rates in the newly independent country skyrocketed as one result of this.

Civil War

Mozambique’s civil war, which occurred from 1977 to 1992, was a lengthy and violent conflict resulting in 1 million deaths. In addition to the deaths, both sides left large amounts of land mines around the country. Mines in Mozambique threatened many aspects of daily life in the country such as being able to go to work or school or even retrieving clean water. Mines severely affected farmers in particular, as they were unable to work their land without fear which threatened their source of income.

Poverty

Significant economic growth began once the civil war ended. Poverty rates began to fall while the population started to grow. Though the population is growing fast and a large percentage of the country continues to live in poverty, that percentage has fallen over the past few decades from more than 70% in 1996-97 to 60% in 2019.

In 2008, 69.7% of the country lived at the international poverty line, yet by 2014 that figure fell to approximately 61.4% indicating significant progress.

International Efforts

In 2014, Mozambique was declared mine-free after at least three decades of international cooperation efforts. A mine-free Mozambique happened largely thanks to organizations such as the Canadian Association for Mine and Explosive Ordinance Security (CAMEO) and the Swiss government’s cooperation program.

The main goal of these programs were to pursue mine-clearing efforts in a humanitarian manner. Many of the people in the organizations and international groups were former members of the military or trained similarly, so they had the right equipment to deal with the land mines that remained in Mozambique after the civil war.

Mozambique also receives help from various NGOs including the Mine Action Coordinator for Handicap International (HI) which also seeks to demine the country. HI is part of the U.N.’s Development Program, which, unfortunately, is constantly overstretched around the world. However, although the operation was working “below capacity,” Mozambique still managed to successfully demine in 2014, according to The New Humanitarian (TNH).

Though there were significant obstacles on the path to being mine-free such as organizations redirecting aid elsewhere and government corruption, a mine-free Mozambique looked possible in the early 2010s. With the help of various governments, international organizations and NGOs, the country is now an exemplar in the region of what demining efforts can achieve.

Looking forward, those tracking the country’s progress are hopeful that Mozambique can continue to slash its poverty rate. The COVID-19 pandemic has halted poverty relief efforts, but the country is hopeful that it can return to its pre-pandemic downward trend. A significant focus will be on creating equity between rural and urban areas as well as ensuring a debt-free and uncorrupt government.

– Lara Drinan
Photo: Flickr

Wild4Life: Expanding the Reach of Health Care

Healthcare in sub-Saharan Africa has a direct impact on poverty in the region. When adults are too ill to work, they and their children can quickly fall into extreme poverty, which leads to hunger and malnutrition. Around 46% of Africa’s population lives on less than $1 a day; an even larger proportion than was the case 15 years ago. Despite these challenges, organizations like Wild4Life are working to expand the reach of healthcare into these underserved communities.

Poverty and Health Care in sub-Saharan Africa

Sub-Saharan Africa is the poorest region in the continent. Close to 60 million children under the age of 17 work instead of attending school in an effort to help their families rise out of poverty. Every fifth child is forced into child labor. This effectively means that when grown, that person will lack education and most likely remain in poverty. This social plight creates a vicious cycle in which chronic malnutrition, growth disorders and physical and mental underdevelopment occur. These health issues further limit an individual’s opportunity to earn a living later in life. In addition, 25 million Africans are infected with HIV, including almost 3 million children — the highest rate of infection in the world. Many of these children have lost one or both parents and are living on the streets.

Government expenditure on healthcare in Africa is very low; typically about $6 per person. This means that medical workers experience huge pressures, operating with little-to-no equipment or means to reach rural populations, Such challenges make healthcare in sub-Saharan Africa difficult to provide.

Good News about Health Care in Rural Communities

The good news is that organizations such as Wild4Life are working to reverse these disturbing healthcare trends. The NGO’s mission is to expand the reach of health services to underserved remote, rural communities in sub-Saharan Africa that have limited or no access to healthcare. To achieve this goal, Wild4Life has developed an incredibly innovative service delivery model. The aim of this model is to reach more people than previously would have been possible. Wild4Life works to establish the basic building blocks of a healthcare system. It believes that a well-functioning system has a lasting effect on a community’s overall health and longevity.

Expansion to Twelve African Countries

The Wild4Life model involves partnering with organizations that are already established in remote locations, and that have put together links with people in the local community. This approach leverages the existing infrastructure, social ties and knowledge bank in cooperation with Wild4Life’s network of health providers. This allows support and treatment to impact some of the hardest-to-reach people and places on earth.

Wild4Life began as an HIV/AIDS program in Zimbabwe, but it has expanded throughout sub-Saharan Africa.  Now operating in twelve countries — Botswana, Cameroon, Ethiopia, Gabon, Kenya, Mozambique, Nigeria, South Africa, Tanzania, Zambia and Zimbabwe —the organization delivers extremely low-cost healthcare in sub-Saharan Africa and provides interventions that are scalable yet sustainable.

Community Partnerships to Improve Health Care

The goals of the NGO include assessing the needs of rural populations and targeting the health issues that most affect them. It also seeks to build clinics in remote areas; strengthen rural healthcare networks; provide quality healthcare and improve community partnerships so that creative ways to address problems become permanent solutions. For example, Wild4Life trains community leaders to mobilize local demands for healthcare services and advocate for quality care from clinic staff and maintain facilities. This results in significant infrastructure improvements. The NGO also organizes events around such topics as improving healthy behaviors and coming up with strategies for the best way to use clinic funds.

Five Clinics in Zimbabwe

In Zimbabwe alone, Wild4Life has a network of five clinics. These clinics have achieved remarkable results, including hundreds of lives saved by new diagnosis and treatment of HIV as well as other preventable diseases. The organization believes that there is not one single technology or innovation that will create a lasting impact on the health of people living in rural communities. Instead, it partners with all levels of the healthcare system to locate the gaps in the extant setup. By doing this, it hopes to leave behind a resilient, local healthcare system for those who need it most.

During comprehensive clinical mentoring, well-trained, multi-disciplinary teams composed of six specialists comprehensively mentor clinic staffs on primary care conditions. These conditions include HIV, TB, Integrated Management of Childhood Illness and testing for anemia. Such services also aid in labor and delivery. This process also covers monitoring and evaluation of data quality, pharmacy management and clinic management over a two-year period.

Scaling Up to Improve Healthcare in Africa

Wild4Life has significantly scaled up since its inception, through government, nonprofit and for-profit connections. It has gone from delivering care to remote areas, to building healthcare networks in rural populations. As a result of its expansion plan, 70,000 more people will have access to high-quality health services in their communities. By training clinicians and community members in the most up-to-date medical care delivery, the NGO is changing the way that rural healthcare in sub-Saharan Africa is delivered.

– Sarah Betuel

Photo: Flickr

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Eliminating Poverty: Update on SDG 1 in Mozambique

Eliminating Poverty in MozambiqueLocated on the southeastern coast of Africa, Mozambique is home to approximately 29.5 million Mozambicans. With a 52% female and 48% male population growing at a rate of 2.5%, high child mortality rates, increased 12.6% HIV prevalence, low life expectancy and low literacy rates, Mozambique is struggling with most of the U.N.’s Sustainable Development Goals (SDG). Mozambique ranks 136 of the 162 countries measured by the Sustainable Development Index. The first SDG is eliminating poverty in Mozambique.

Poverty in Mozambique

According to Mozambique’s Household Budget Survey, 46.1% of the population lives below the poverty line. There exists multidimensional poverty measured by the quality of family, nutrition, education, work, health, sanitation and hygiene (WASH), resulting in 46% of children 17 years and below living in poverty.

The country’s location makes it vulnerable to many natural disasters that often stunt its economic growth, making it difficult to eliminate poverty in Mozambique. Mozambique faces a combination of tropical and dry climates, an abundance of natural resources ranging from renewable energy sources to agro-ecological regions, forests and wildlife. The Gross Domestic Product (GDP) growth rate fell from 7.4% to 3.7% between 2007 and 2017 as a result of drought, flood and cyclone natural disasters.

Barriers to Eliminating Poverty in Mozambique

The recent COVID-19 pandemic has brought an additional burden to Mozambique, coming just as the country was recovering from major economic shocks related to its recent debt crisis and the devastating 2019 cyclones. Since the onset of the pandemic, Mozambique has already experienced a 4% decline in its economic growth expectations with significant adverse effects on its already struggling economy. Mozambique is expected to feel the lasting effects of this shift in the coming years, facing even larger external and fiscal financing gaps than previously anticipated. Further, there is concern that large numbers of Mozambicans are on the verge of re-entering poverty, erasing much past progress and setting the country back on the SDG to eliminate poverty.

One of the main barriers to eliminating poverty in Mozambique is its long-standing exclusion regarding gender and other vulnerable groups and regional public policy imbalances. In order to have sustainable poverty reduction, Mozambique must give special attention to eliminating these key issues.

Current Efforts and Solutions

The Nation Basic Social Security Strategy (ENSSB) was developed to help achieve the government’s five-year plan (2015-2019) to implement actions aimed at reducing poverty and vulnerability. Between 2016 and 2024, it seeks to ensure impending economic growth is of benefit to all its citizens, particularly the most vulnerable. A strategy based on the Agenda 2063 of the African Union and the U.N.’s SDGs, the ENSSB was designed to build an efficient and effective social security system in Mozambique. It directly aims to sustainably support and strengthen Mozambique’s most impoverished population’s capacity to defend themselves against social risks such as violence, abuse, exploitation, discrimination, and social exclusions due to their elevated vulnerability.

The World Bank Group (WBG) currently supports a wide and diverse lending portfolio for the benefit of eliminating poverty in Mozambique. Focusing on Mozambique’s most vulnerable and underserved populations, the WBG has lent its resources to 27 operations with contributions of $3 billion funded by the International Development Association (IDA). The International Finance Corporation additionally has existing investments of up to $176 million, with $15 million in advisory services alone as of June 2020. The WBG’s portfolio consists of two Multilateral Investment Guarantee Agency exposures of up to $89.1 million as well.

Such large and varied contributions and investments have the following primary goals: diversification for economic growth and development, human capital development, and increased sustainable development, prosperity and resilience.

COVID-19 Relief Support in Mozambique

As a result of the onset of the pandemic, Mozambique is struggling with a growing fiscal gap and economic fallout. In order to prevent deepening long-term economic effects, the WBG approved a $100 million grant from the IDA on October 22, 2020. This funding aims to mitigate the pandemic’s adverse impact by providing emergency government financing, supporting affected businesses and households and improving fiscal sustainability reform.

This effort of the WBG will serve as part of its existing plans to aid Mozambique in post-crisis recovery in the form of improving health services, access to water and sanitation, extending social protection and labor, improving business, job creation and retention and economic management. These goals will help push Mozambique forward, improve Mozambicans’ quality of life and lift people out of poverty. These investments will be implemented through a two-pronged approach. First, the health sector will be addressed, along with social security, safety and water access for all Mozambicans, with a particular focus on the urban poor and vulnerable populations. Secondly, supporting small and medium enterprises’ (SME) access to financing and liquidity will help catalyze economic growth in the financial sector and industry reform and strengthen Mozambique’s fiscal and debt framework.

Though Mozambique has faced many setbacks in its economic development in recent years, the above strategies will hopefully set the country on its way to achieving the very first Sustainable Development Goal of eliminating poverty in Mozambique.

– Rebecca Harris
Photo: Flickr

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Improvements to Healthcare in Mozambique

Healthcare in MozambiqueThe state of healthcare in Mozambique has drastically changed in the last few decades. While Mozambique was once a country with little access to healthcare services, the country has decreased mortality rates since the launch of its Health Sector Recovery Program after the Mozambican civil war, with assistance from the World Bank.

History of Mozambique

The Mozambican civil war that took place from 1977-1992 had lasting effects on the country’s healthcare system and economy, resulting in limited funding for health services and insufficient access to care providers.

The Health Sector Recovery Program was launched in 1996 in order to refocus on funding healthcare in Mozambique, which desperately needed expanded resources to address the growing health crises. New health facilities were constructed throughout the country increasing accessibility to healthcare. The number of health facilities in Mozambique from the start of the civil war to 2012 quadrupled from 362 to 1,432 and the number of healthcare workers increased along with it.

Improvements to Healthcare and Accessibility

About 30 years ago, Mozambique had one of the highest mortality rates for children under 5 but was able to significantly reduce this number after the success of the Health Sector Policy Program. In 1990, this rate was 243.1 mortalities per 1,000 children. The rate has been reduced to 74.2 mortalities as of 2019. Maternal health was also targeted by the program, with increased health facility births from 2003 to 2011.

Conflict in Cabo Delgado

Despite these improvements to healthcare in Mozambique, Cabo Delgado, a northeastern province, is facing one of the worst healthcare crises in the country since violence struck the area in October 2017. Conflict between non-state armed forces clashing with security forces and other armed groups has caused more than 200,000 people in the area to become internally displaced. Coupled with the aftermath of Hurricane Kenneth, one of the strongest hurricanes to hit Africa, the area is facing severe food shortages and lack of shelter for people.

Cabo Delgado has also seen a rise in COVID-19 cases and other diseases such as cholera, diarrhea and measles, resulting from inadequate clean water and sanitation.

Intervention by UNICEF

On December 22, 2020, UNICEF shared a press release on the increased need for healthcare in Cabo Delgado. As the rainy season begins, there is an increased risk for deadly disease outbreaks. It appealed for $52.8 million in humanitarian assistance for 2021 projects aimed at aiding Mozambique.

UNICEF is expanding its water and sanitation response in order to prevent the outbreak of water-borne diseases like cholera and the further spread of COVID-19.

UNICEF also aims to give crucial vaccines to children in Mozambique, increasing its numbers from 2020. The 2021 targets include vaccinating more than 67,000 children against polio and more than 400,000 measles vaccinations. Children will also be treated for nutritional deficiencies from food insecurity and UNICEF plans to screen more than 380,000 children under 5 for malnourishment and enroll them in nutritional treatment programs.

Mental health support services will be provided to more than 37,000 children and caregivers in need, especially those experiencing displacement from armed conflict and those affected by COVID-19.

The Future of Healthcare in Mozambique

While healthcare in Mozambique has significantly improved in the last few decades, a lack of health services still affects the country’s most vulnerable populations. Aid from international organizations like UNICEF aims to tackle these issues to improve healthcare in Mozambique.

– June Noyes
Photo: Flickr

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Initiative Underway to Aid Poverty in Mozambique

Aid Poverty in MozambiqueThe country of Mozambique, located in southern Africa, has 46.1% of its population living below the poverty line. Children living in rural areas are among the most impacted as poverty in Mozambique hits rural areas the hardest. Economic growth has occurred in the country over the last decade but rural poverty persists due to meager transport infrastructure ultimately segregating rural regions. However, a new initiative is underway to help aid poverty in Mozambique.

The Integrated Feeder Roads Project

Funded by the World Bank, the Integrated Feeder Roads Project is an ongoing initiative that is enhancing road access in selected rural regions of Mozambique to support the well-being of local communities. For Mozambique and its segregated rural regions, added transport infrastructure that the Integrated Feeder Roads Project provides will connect these poverty-stricken rural regions to greater Mozambique. As a result, poverty in Mozambique is set to improve through imports, exports and overall improved levels of accessibility to and from rural regions.

Cyclones Strike

In 2019, the powerful Cyclone Idai and Cyclone Kenneth ravaged their way through the Southern Hemisphere and Mozambique was one of many countries deeply affected. Cyclone Idai was deemed to be one of the worst natural disasters to ever hit southern Africa over the last 20 years. Only six weeks later, Cyclone Kenneth hit Mozambique, marking the first time that two strong tropical cyclones struck the country in the same season. The aftermath of both cyclones was devastating, and in the destruction, the already minimal roads connecting rural regions were further damaged and relief efforts from humanitarians became nearly impossible. Poverty in Mozambique worsened after these cyclones and so did the transportive means of aiding it.

The World Bank Helps Aid Poverty in Mozambique

The Integrated Feeder Roads Project was initially approved by the World Bank in 2018 as Mozambique’s transport infrastructure has long been insufficient to sustain steady economies in rural areas and support local communities. Following the cyclones and the damage they left behind, the World Bank approved an IDA grant of $110 million to further aid reconstruction efforts given the severe aftermath of Idai and Kenneth. Overall, the World Bank is financing the Integrated Feeder Roads Project with an estimated total of $185 million.

COVID-19 in Mozambique

As if Mozambique had not endured enough, COVID-19 has been yet another unfortunate obstacle thrown at the country in its rebuilding process after the cyclones. Negatively impacting poverty, Mozambique’s economy has further declined as a result of COVID-19 due to travel restrictions and precautions affecting the flow of goods and services. Transport infrastructure built from the Integrated Feeder Roads Project will aid relief efforts and boost the economy even though COVID-19 is impacting poverty relief efforts.

The Future of Mozambique

In the face of much adversity, the Integrated Feeder Roads Project offers plenty of hope for poverty relief success in Mozambique. Added transport infrastructure will connect rural regions to greater Mozambique, and in a time of heavy need, these opened connections will help rural communities and affected individuals who desperately need it. Overall, foreign aid will help aid poverty in Mozambique.

– Dylan James
Photo: Flickr

Natural Gas Industry Creates Job Opportunity for Mozambique

Natural Gas Industry Creates Job Opportunity for MozambiqueBy now, most of the world has put some form of social containment measures into place for COVID-19. Unfortunately, it has had a negative reversal effect on the progress of economic globalization. Mozambique is a place with an abundance of natural resources. However, it is still one of the poorest countries in the world. An opportunity has now presented itself after the DFC (U.S. International Development Finance Corporation) recently approved two substantially large natural gas projects in Mozambique.

Poverty and Social Inequalities

Within the last 20 years, Mozambique has had a growing period in predictive expansion in agriculture and natural resources. The growth has been at a slow pace. Although the poverty numbers are not what they once were, there is a noticeable space between social and financial equality. A recent report from ClubOfMozambique.com suggests that the abrupt lockdowns from COVID-19 have shined a light on the wide gap between the well-off and the impoverished. Hunger has been another major issue for struggling families due to spikes in inflation and boundary restrictions. There is public blame that is directed toward the government and the failure of equal distribution of wealth.

The Natural Gas Project

In July 2020, a major French oil company, Total, put together a near $15 billion contract agreement to begin the production and distribution of the country’s abundant natural gas resources. The scale of this project is set to be one of the biggest industrial initiatives in the history of Africa. The World Bank and The International Monetary Fund (IMF) have given their assistance both financially and publically. This is needed amid pushback from the use of fossil fuels. An environmental organization called Friends of the Earth International has concluded that ever since the country first discovered natural gas reserves 10 years ago, it has contributed to the public imbalance of wealth and prosperity. From the opposite point of view, the African department of the IMF suggested that the fuel project could be a very unique window of opportunity to bring a fresh start to the economy of Mozambique.

Possible Job Opportunity

The country’s economic statistics would suggest that this project would be a significant milestone for those that are deep in poverty. Proper instruction and leadership from international fuel companies can eventually lead to job opportunities for locals. Currently, job opportunities are few and far between with a high majority having to rely on agriculture for survival. In addition, this is a main key factor that went into the government’s extensive plan. This would work toward converting natural gas into nutrients for crops, bringing higher yields for working farmers. Perhaps most importantly is the fact that this project has the potential to rectify one of the main problems in the country: dependable energy. Bringing in the fuel industry would allow the chance for energy in expanded locations. As a result, it would inevitably bring back Mozambique’s travel and vacation business.

When a country such as Mozambique is going through such disheartening conditions, it is hard to argue against taking the risk to majorly improve their economic situation. When Mozambique takes part in the natural gas business sector, it would lead to more international attention and inclusion.

– Brandon Baham

Photo: Flickr

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How Foreign Aid in Mozambique is Put to Work

Foreign Aid in MozambiqueThe provision of foreign aid from the United States serves as a multifaceted solution and preventative measure to many issues that ultimately impact the United States. In assisting with the development of under-resourced countries and those afflicted by natural disasters and conflict, the country’s interest in strengthening U.S. eminence in the global political ecosystem is served, as is the initiative to foster and stabilize democracies that are essential in maintaining global peace. Mozambique is one such country that receives aid from the United States. Nearly half of the population lives in poverty and while having managed to combat that statistic with an annual decrease of 1%, the country continues to see rising levels of inequality. USAID’s 2019 assistance investment in Mozambique totaled $288 million. Foreign aid in Mozambique is being used in several key developmental areas.

Developing Education

A significant portion of U.S. foreign aid has been invested in providing basic education. This foreign aid in Mozambique has been applied in conjunction with the country’s national budgetary allocation of 15% for basic education. This initiative has led to improved access to education with the abolishment of enrollment fees, an investment in free textbooks, direct funding to schools and the construction of classrooms. With access to education improving, Mozambique now moves to focus on developing the quality of education it provides and extending the initiative of improving access to those who are in the early learning stage. Only 5% of children between the ages of 3 and 5 have access to such services. Moving forward, educational initiatives aim to focus on the improvement of teacher training, the retention of students (as only 8% continue onto secondary level) and optimizing the management and monitoring of education nationally.

Addressing Humanitarian Needs

A large part of foreign aid in Mozambique has been committed to battling humanitarian crises. Cabo Delgado is the northernmost province of the country and is experiencing an insurgency that is decimating its infrastructure and food security. As a result, there is an ongoing displacement of the population. In November 2020 alone, more than 14,300 displaced people arrived in the provincial capital Pemba. The World Food Programme estimates the cost of feeding internally displaced people in northern Mozambique to be at approximately $4.7 million per month, aside from the housing costs and the complexity of managing the crisis amid a global pandemic. This allocation of the country’s foreign aid will be vital in maintaining the wellbeing of people during the conflict and restoring the country’s infrastructure once the insurgency has subdued.

Improving the Health Sector

The bulk of foreign aid in Mozambique goes toward the many challenges the country faces with regard to health issues such as funding family planning, battling tuberculosis, maternal and child health as well as water and sanitation. More than $120 million goes toward this initiative but the most pressing of the issues is mitigating the HIV/AIDS epidemic. In 2014, Mozambique ranked eighth globally for HIV cases. With the support, antiretroviral therapy and testing has expanded, which is evidenced by more than a 40% drop in new cases since 2004. Additionally, with a sharp increase in the treatment of pregnant women who carry the virus, one study recorded a 73% drop in cases among newborns between 2011 and 2014. The executive director of UNAIDS, Michel Sidibe, has claimed that the epidemic could be completely eradicated by 2030 if such a rate of progress continues.

The developmental progress in Mozambique is reflective of the substantial impact that foreign aid has on developing countries. As U.S. foreign aid to developing countries continues, the hope is for other well-positioned countries to follow suit.

– Christian Montemayor
Photo: Flickr

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The DFC Energy Projects in Mozambique

Energy Projects in MozambiqueOn September 9, 2020, the United States International Development Finance Corporation (DFC) approved two energy projects in Mozambique. The recent decision resulted in a loan of $200 million to Centra Térmica de Temane for a power plant and $1.5 billion in risk assurance to support the commercialization of Mozambique’s natural gas reserves. The purpose of these projects is to create access to energy and an opportunity for economic growth fueled by Mozambique’s natural gas reserves. The DFC energy projects in Mozambique constitute a substantial investment by the U.S. that will make good on the Prosper Africa pledge which aims to increase U.S. investment in Africa.

Keeping its Promise to Africa

The Prosper Africa initiative serves to create business opportunities in Africa and increase two-way trade and investment with the intent to benefit companies, investors and workers in the U.S. and Africa. Dennis Hearne, U.S. Ambassador to Mozambique, spoke highly of the two projects stating, “These projects will have a significant development impact in Mozambique, improve lives and create a once-in-a-generation opportunity for the country to build a more prosperous future for all Mozambicans.”

Jumpstarting Economic Growth

Mozambique is one of the poorest countries in the world, with a GDP per capita of less than $500. It is the job of the DFC to prioritize projects in areas that are low income. DFC investment for energy projects in Mozambique could create a lot of private capital in the country and jumpstart economic growth.

The DFC will provide up to $1.5 billion in political risk insurance to advance the development, construction and operation of an onshore liquefaction plant that will commercialize Mozambique’s natural gas reserves in the Rovuma Basin. This project could turn the country into a major energy exporter and increase the GDP by an average of $15 billion per year, creating long-term economic growth. The development will envelop the entire country, boosting sectors aside from oil and gas.

Diversifying Power Resources

Those in Mozambique who are lucky enough to have electricity rely almost entirely on one colonial-era dam called Cahora Bassa. The dam provides more than 2,000 megawatts out of the approximate 2,800 megawatts installed capacity. Due to extreme weather conditions, the Zambezi River, which powers the dam, flows irregularly, “putting the country’s entire power system at great risk.” The DFC’s proposed power plant will be powered by Mozambique’s natural gas reserves, providing a different source of electricity that is also reliable.

Creating a Power Infrastructure

Only 29% of Mozambicans have electricity in their homes, making it an energy-poor country. Companies with a grid connection still rely on diesel 17% of the time and biomass (wood and charcoal) accounts for 60% of the country’s primary energy use.

In order to develop, construct and operate a 420-megawatt power plant with a 25-kilometer interconnection line and 560-kilometer transmission line, the DFC will loan Central Térmica de Temane up to $200 million. Not only will the power plant diversify the country’s power resources but will also reduce the cost of electricity. Furthermore, it will allow Mozambique to use its own natural gas supply to increase power generation and support the government’s plans to develop the national electricity system.

Balancing Exports and Domestic Use of Natural Gas

Mozambique’s natural gas reserves are abundant and will provide the country with an incredible income. However, Mozambique is uninterested in exporting all of its natural gas to Europe and Asia. The DFC will help Mozambique attain the generation infrastructure that will allow the country to use natural gas to power its homes and businesses and it will support large-scale liquified natural gas export facilities in order to bring revenue into Mozambique.

The completion of the DFC energy projects in Mozambique will take Mozambique from one of the poorest countries with regard to revenue and energy to a major energy exporter with long-term economic growth. These projects will help the economy grow, provide the country with a diverse power infrastructure and balance its natural gas usage. These investments will also fulfill the Prosper Africa pledge in which the U.S. vowed to increase investment in Africa. Overall, U.S.-Africa relations will benefit, and more importantly, a prosperous future will lie ahead for the people of Mozambique.

– Mary Qualls
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