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USAID/Mozambique 

Operational Plan 

FY 2006 

June 2, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: Program Narrative (FY 2005): Mozambique is one of the few 

countries in Africa that has successfully made the transition from long-term colonial and civil war to longterm peace and democracy. In December 2004, Mozambique held free-and-fair presidential and 

parliamentary elections for the third time since 1992. The international community applauded the 

peaceful transition to a new government. The country’s success is reflected in its ability to sustain strong 

economic growth, including GDP growth of 7.5% in 2004 and 7.7% projected for 2005. The outlook is 

positive for economic growth and political stability, if a series of second generation reforms, including 

corruption control, are undertaken. 

The outlook is not entirely positive. Mozambique ranks 168 out of 177 countries on the 2005 UNDP 

Human Development Index; fifteen years ago it was dead last in the ranking. Annual per capita income is 

roughly $345 (IMF 2005 projections), although it is estimated to be in the order of only $100 per year in 

rural areas of the country. More than 70% of the population lives in rural areas, and an even higher 

proportion depends on agriculture for survival. Twenty-nine percent of the population lives at or below the 

poverty level. Using the Mozambican minimum consumption measure of poverty, 54% of the population 

was living below the poverty line in 2003, a substantial improvement from the 69% recorded in 1997. 

Fifty-three percent of adults are illiterate. Even with increased vaccination rates and improving access to 

basic health services, life expectancy is low -- 46 years for women and 44 years for men -- and is under 

pressure due to a 16% HIV prevalence rate. Mozambique’s mortality rate for children under five, at 138 

per thousand, is somewhat reduced from previous years, but is still unconscionably high. 

For years after the civil war, Mozambique was entirely dependent on food aid. While this is no longer the 

case, and production of staple crops such as maize has increased, there is a considerable difference in 

production among the country’s regions. Mozambique is extremely prone to cycles of flooding and 

drought, which further aggravates the country’s food insecurity situation. Hit hard by catastrophic flooding 

in 2000 and 2001, Mozambicans in certain high risk areas endured through a four consecutive year of 

drought. As a result, 800,000 people in affected districts are suffering from hunger and malnutrition. 

Fortunately, USAID and other donors are fully engaged in assisting Mozambique in tackling practically 

every major development issue facing the country. USAID is delivering technical assistance, training, and 

some vital commodities to help Mozambicans become more productive, healthier, and more skilled; while 

at the same time bringing together Mozambique’s private sector, civil society, and government institutions 

to liberalize the economy and instill good governance. Other donors are also providing substantial 

amounts of aid to Mozambique that make it possible for the government to implement its ambitious 

poverty reduction strategy. In 2005, general budget support from the European donors and the World 

Bank financed 50% of the government’s budget. This percentage is expected to remain approximately 

the same in 2006 and in 2007 despite the fact that Government revenues are expected to increase from 

12.3% of GDP in 2004 to 14.0% in 2006. On the whole, donors feel their assistance is used effectively, 

but recognize that there is room for improvement. 

Challenges: Economic growth is the key to reducing widespread poverty in Mozambique and must come 

from increased production and marketing in the agricultural sector to benefit most directly the poor. About 

80% of the population relies on agriculture for income, but only produces about 25% of the GDP. One of 

Mozambique’s greatest medium-to-long term economic development challenges is to diversify the 

economy in order to attract investment, especially in labor-intensive export sectors. With a tradeweighted average tariff of nine percent, the economy is one of the most open in Africa. Without, however, 

structural reforms that create a business environment in which it is possible to compete, investors and 

businesses will not be able to take full advantage of the global marketplace. Fortunately, USAID is 

working hand-in-hand with Mozambique’s private sector and government on many of the most pressing 

issues in Mozambique’s high population, high economic potential areas. 

One of Mozambique’s most daunting and immediate development challenges is HIV/AIDS. In 2005, an 

estimated 1.6 million Mozambicans are living with HIV/AIDS, and there are approximately 326,000 

orphans and vulnerable children as a result of the AIDS epidemic - a number that is expected to reach 

one million by 2010. There are only about 650 doctors in all of Mozambique, 200 of them in the capital 

city. Many rural areas have just one physician per 60,000 people and the national health network covers 
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less than 50% of the population. Mozambique suffers from frequent outbreaks of cholera and coepidemics of tuberculosis and malaria, which exacerbates the impact of HIV/AIDS. In short, HIV/AIDS 

looms as a severe threat to positive economic, social, and political trends in Mozambique. The pandemic 

remains one of the U.S. Government’s highest priorities in Mozambique, one of 15 focus countries under 

the President’s Emergency Plan for HIV/AIDS Relief (PEPFAR). USAID is part of a multi-agency team 

implementing PEPFAR that also includes the U.S. Department of State, the Centers for Disease Control, 

The U.S. Department of Defense, and Peace Corps. Under PEPFAR, USAID is supporting treatment for 

people infected with HIV/AIDS, care for people--especially orphans--who are infected or affected by 

HIV/AIDS, and prevention of new infections. A description of the U.S. Government’s HIV/AIDS program in 

Mozambique can be found in the State Department Office of the Global AIDS Coordinator report at 

<http://www.state.gov/s/gac>. 

Key Achievements: 

Rural incomes: USAID helped increase household incomes by improving access to markets, expanding 

rural enterprises, and increasing and diversifying sustainable agriculture output. In spite of a continued 

drought that disrupted production, and stalled policy reforms as the new minister and his team stepped in 

to run a restructured Ministry of Agriculture, FY 2005 results in this sector were impressive. Business 

development activities resulted in USAID-assisted enterprises generating over $10.5 million in total sales, 

directly benefiting 42,272 households in the process. Local construction companies working under the 

USAID roads program successfully applied the training and institutional support they received to improve 

management and performance. The enhanced human and operational capacity allowed these 

contractors to compete for and win over $2 million in construction contracts. Cashew processors reaped 

the benefits of USAID’s technical advice to both the cashew industry and the Ministry of Industry and 

Commerce to the tune of $7.4 million in commercial credit. The cashew processors used the credit to buy 

more cashews from small farmers. This had the dual benefit of boosting the viability of the cashew 

processing industry and significantly mitigating the hardship brought about by this year’s drought 

conditions. 

Trade: USAID continued to see improvements in Mozambique’s business environment in FY 2005. After 

four years of technical assistance, donor coordination, and advocacy from USAID on raising the profile of 

trade in Mozambique’s development strategy, Mozambique successfully integrated trade into the 

country’s Poverty Reduction and Growth Strategy. In addition, USAID’s partnership with the 

Confederation of Mozambican Business Associations (CTA) led to marked improvements in the business 

environment. CTA assisted in the preparation of a new labor law, currently under consideration by the 

government, and the organization’s advocacy efforts influenced steps ultimately taken by the government 

to reduce the number of days required to register a business from 153 to 139. CTA also passed an 

important governance milestone with the conduct of internal elections that ushered in new leadership. FY 

2005 was the final year of USAID’s partnership with Mozambique’s telecommunications parastatal, a 

partnership that introduced internet services to government offices and private universities in five 

provincial capitals. 

Primary Health Care: In FY 2005, USAID’s new provincial and community-level activities got off to a solid 

start. With USAID assistance, outreach teams in Zambezia province were able to assist, on an average 

monthly basis, 529 villages that are over five kilometers from a health center. The villages received 

maternal health, antenatal care, and health education services. USAID purchased bicycle ambulances 

distributed to targeted communities were used to transport 1,679 sick children and 1,233 pregnant 

women to health facilities. Critical tools were produced and trainings conducted for the Ministry of 

Health’s (MOH) routine vaccination program, which will enable health workers to more effectively 

implement recently improved MOH policies. At the central level, USAID contributed technical assistance 

for the preparation of the National Nutrition Strategic Plan and a national policy on infant and young child 

feeding. This assistance sets the stage for new community- and facilities-based activities that address 

issues such as Vitamin A deficiency and malnutrition. USAID’s technical assistance also resulted in the 

introduction of a new computerized logistics management system that will allow the Ministry of Health to 

monitor drug and medical supplies around the country to reduce shortages and improve procurement 

planning. 
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Municipal Governance: In support of Mozambique’s December 2004 national elections, USAID partnered 

with the Carter Center and a respected Mozambican non-governmental organization to field over 1,000 

election observers and conduct a country-wide parallel vote count (PVT). The PVT accurately predicted 

and independently validated the final election results, thereby facilitating the opposition’s acceptance of 

the results. After delays due to the change in government, USAID launched a new municipal governance 

activity in June 2005. The activity is designed to improve accountability and transparency in five selected 

municipalities. The contractor has already facilitated information and a skill sharing among the program’s 

targeted municipalities by arranging for one municipality to provide technical assistance in budget 

preparation to another. USAID technical advice to another target municipality helped create a public 

record of land values that will be the basis for a new tax system in the municipality of Vilankulo. On-going 

technical support to the Central Office for the Combat of Corruption created the capacity to investigate 

180 corruption cases. Eighty of the 180 cases were found worthy of prosecution. USAID’s partnership 

with Mozambique’s leading anti-corruption non-governmental organization led to increased public 

awareness about corruption through community outreach activities, workshops and seminars that 

targeted civil society, the private sector, and government officials. Following a comprehensive corruption 

assessment, USAID is designing a new anti-corruption activity that will expand existing initiatives to fight 

corruption by strengthening prosecution capacity, supporting civil society coalitions, building advocacy 

capacity, and improving transparency in selected government operations. The new activity will also allow 

USAID to monitor and measure the impact of activities to combat corruption more effectively. 

 

Gender: Given the multiple economic, social, and political disadvantages that affect the lives of 

Mozambican women, USAID emphasizes gender awareness and integrates approaches to address 

gender inequalities into all sectoral programs. For example, through the municipal governance program, 

women are participating in community strategic planning exercises and budget oversight in order to 

guarantee that gender concerns are addressed in improving service delivery at the local level. In FY 

2005, the Mission began participating in USAID’s Women’s Legal Rights Initiative to protect women’s 

legal rights through improved legislation and increased public awareness of gender issues. Literacy, 

numeracy, and leadership training for women is increasing their participation in agricultural production 

and marketing, and women farmers, extension workers and marketing association members comprise a 

significant percentage of the participants for key activities. In FY 2005, 20% of the contract road work 

supported by the program was undertaken by female work brigades and women were trained in all 

aspects of road construction and maintenance. 

Integrated Programming and Cross-Cutting Issues: USAID encourages linkages across program areas to 

increase program results and efficiencies. Mozambique’s continued success in expanding both economic 

growth and the benefits of growth is contingent on an effective response to the HIV/AIDS crisis across all 

sectors. USAID has therefore identified ways to mitigate the potential impact of HIV/AIDS in all sectors. 

Food security activities are linked to programs financed under the President’s Emergency Plan for AIDS 

Relief (PEPFAR) that benefit orphans and vulnerable children. Private sector policy activities are 

examining the issue of HIV/AIDS in the workplace and its effect on Mozambican businesses. Health 

activities are enhancing the ability of the Mozambican health system to provide HIV/AIDS treatment and 

care. Additionally, the rural incomes program supported an assessment of the impact of HIV/AIDS in 

rural areas to provide information on the impact of the disease on rural household earning and 

productivity potential. USAID has started encouraging mayors involved in municipal governance activities 

to use their roles as leaders to educate citizens about HIV/AIDS prevention, treatment, and reducing 

stigma. USAID’s agriculture and health programs are working together to reduce the economic and 

health burdens of malaria and diarrhea in target areas through the promotion of insecticide treated bed 

nets and water treatment kits, as well as sanitation and hygiene awareness activities. As a result of this 

collaboration, USAID expects to see measurable reductions in household health care expenses and 

improved labor productivity. Finally, USAID is in the process of “mainstreaming” anti-corruption activities 

to focus on improving transparency in selected government operations which may include access to land, 

business registration, procurement systems, and anti-retroviral therapy distribution. 

Global Development Alliances and Partnerships: USAID is actively pursuing the public-private partnership 

model in Mozambique. The Mission invested $1.1 million through an alliance with TechnoServe, due to 
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end in December 2005. Over the past two and a half years, top executives from companies including 

Chiquita Brands, Ernst & Young, General Mills, Liz Claiborne, and McKinsey and Company have 

volunteered to mentor Mozambican businesses; their combined in-kind contribution is valued at 

$750,000. Two alliance partners provided pro-bono marketing assistance to groups of cashew 

businesses for the development of a brand name, label and packaging, resulting in the launch of a 

Mozambican brand of cashews in FY 2005. USAID’s alliance with the Cooperative League of the USA 

is facilitating the development of the first producer-owned trading company in Mozambique. This year 

IKURU, the Mozambican trading company, was certified as a fair trade company and obtained a contract 

to sell soybeans to Norway. The Mission laid the groundwork for two new GDAs - one with the African 

Wildlife Fund (AWF) and another with the Carr Foundation. The partnership with AWF, funded with 

$400,000 from USAID and $3 million from AWF and other alliance members, will support construction of a 

fence that will link the Limpopo and Kruger National Parks, as well as advocacy efforts targeting the 

South African and Mozambican governments to encourage them to open the fences between these parks 

to allow wildlife to naturally move and restock the reserve. The communities in the reserve will be trained 

in the application of appropriate agro-forestry technologies for improved food security and household 

incomes. For the partnership with the Carr Foundation, USAID will contribute $514,000 to finance 

conservation services as part of the $5 million first phase of the Carr Foundation’s 30-year, $30 million 

program to revitalize Gorongosa National Park. Conservation services will include research, educational 

programs, anti-poaching, animal relocation and breeding, and scout training. Both new activities are 

pending environmental assessments and are expected to begin implementation in FY 2006. 

Presidential Initiatives: Mozambique is the only country where three of the President’s major 

development initiatives and programs fully intersect: the President’s Emergency Plan for AIDS Relief 

(PEPFAR), the Millennium Challenge Account (MCA), and the President’s Initiative to End Hunger in 

Africa (IEHA). HIV/AIDS is one of the U.S. Government’s highest priorities in Mozambique and is being 

addressed by a multi-agency team which includes USAID, the U.S. Department of State, the Centers for 

Disease Control, The U.S. Department of Defense, and Peace Corps. Under PEPFAR, in FY 2005, 

USAID supported treatment for people infected with HIV/AIDS, care for people--especially orphans--who 

are infected or affected by HIV/AIDS, and prevention of new infections. Under the President’s Initiative to 

End Hunger in Africa (IEHA), USAID helped Mozambican researchers to apply science and technology to 

increase the productivity and profitability of Mozambican farmers. USAID’s efforts strengthened the 

capacity of the National Agricultural Research Institute to adapt existing food production and storage 

technologies to make them suitable for implementation by Mozambican farmers. Over the medium-tolong term, the resulting increases in farm yields and decreases in post-harvest losses will translate to a 

reduction in the number of Mozambicans affected by hunger and malnutrition. USAID also used IEHA 

funds to finance advanced degree training in economics and trade in South Africa for a number of young 

Mozambicans. 
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FY 2006 Program 

SO: 656-006 Rapid rural income growth sustained in target areas 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access to Economic & Social Infrastructure ($1,100,000 DA). USAID is improving 750 

kilometers of tertiary roads and training an additional four road construction firms (for a total of 17). 

USAID estimates approximately 800,000 Mozambicans will benefit - directly and indirectly - from the yearround access to markets, health centers, and schools. Principal contractors and grantees: World Vision 

(WV) (prime). 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($1,100,000 DA). The conditions for continued 

support to the Ministry of Agriculture’s (MinAg) Sector Investment Program were not met in FY 2005, nor 

are they expected to be met in FY 2006. USAID is therefore shifting away from direct sectoral budget 

support to the MinAg, and instead will establish an agricultural research fund as part of the President’s 

Initiative to End Hunger in Africa (IEHA). USAID is working with the public and private sectors to develop 

the capacity to collect, analyze, and disseminate data on rural incomes and agriculture issues for use in 

agricultural policy making. This will include scholarships for Mozambicans to complete graduate studies 

in economics and trade in South Africa. Principal contractors and grantees: Michigan State University 

(prime), African American Institute, others to be determined (TBD). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($1,820,000 DA). With IEHA funding, USAID is helping to make 

four agriculture sub-sectors more competitive: horticulture, confectionary nuts and seeds, feed grains and 

poultry and forestry. Assistance is creating opportunities for targeted agribusinesses to diversify into 

revenue-enhancing export crops, improve productivity and crop quality, expand the use of appropriate 

agricultural inputs, and reduce production costs. USAID is teamed with the public and private sectors to 

address bio-security issues, especially avian influenza. USAID is also awarding scholarships to young 

Mozambican entrepreneurs for commercial and technical agricultural training. Principal contractors and 

grantees: Technoserve, Cooperative League of the USA, and Agricultural Cooperative Development 

International/Volunteers in Overseas Cooperative Assistance (all prime). 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,620,000 DA). Under IEHA, USAID is strengthening the 

capacity of the agriculture research system to rapidly adapt agricultural technologies to significantly 

improve food security and reduce rural poverty by increasing yields, upgrading processing, and reducing 

post-harvest losses. USAID is enhancing farmers’ access to productive agricultural inputs by promoting 

private sector marketing of fertilizer, seed, and crop protection products. USAID will competitively award 

grants to Mozambican scientists for adaptive agricultural research that will benefit Mozambican farmers. 

USAID’s assistance will ensure that disease resistant seeds and varieties for key food crops are available 

to poor farming families, thus providing them with greater overall food security. Principal contractors and 

grantees: Michigan State University, WV, CARE, and Africare (all prime). 

Increase Trade and Investment 

Increase Trade and Investment ($1,650,000 DA; $181,000 prior year DCA; $28,000 prior year DA). 

USAID allocated $200,000 to leverage a four million dollar Development Credit Authority (DCA) program 

with a large Mozambican commercial bank (BCI Fomento). A further $200,000 in subsidies will be 
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transferred to the DCA account for additional DCA activities, with an estimated portfolio of $5 million. The 

increased access to financing will allow viable agribusinesses to rapidly expand their operations, create 

new jobs, and increase market opportunities and incomes for smaller-scale producers. USAID’s Rural 

Finance Advisor continues to advise the Ministry of Industry and Commerce (MIC) on how best to 

improve the trade and investment climate. Principal contractors and grantees: BCI Fomento, others TBD. 

Protect and Increase the Assets and Livelihoods of the Poor 

Protect and Increase the Assets and Livelihoods of the Poor ($1,516,000 DA). Under IEHA, USAID links 

DA and Title II to small farmers to boost productivity and enable them to better market their increased 

production by: testing technologies that reduce post-harvest losses; adopting drought/pest resistant plant 

varieties; adopting integrated pest management technologies; implementing technologies to conserve soil 

and water; and improving nutrition, hygiene, and sanitation. USAID’s disaster warning and mitigation 

activities continue to improve Mozambique’s cyclone/flood warning systems. Principal contractors and 

grantees: Chemonics, WV, CARE, and Africare (all prime). 

FY 2007 Program 

SO: 656-006 Rapid rural income growth sustained in target areas 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access To Economic & Social Infrastructure ($1,500,000 DA). USAID may expand 

road rehabilitation activities into new areas. Principal contractors/grantees: same as above. 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($1,000,000 DA). USAID will continue aid to the 

public and private sectors to develop the capacity to collect, analyze, and disseminate data on rural 

incomes and agriculture for use in informed policy making. Principal contractors/grantees: same as 

above. 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($1,998,000 DA). USAID will continue business development 

activities to include new sectors. USAID will help to improve the quality of education at private 

Mozambican agricultural colleges. Principal contractors and grantees: same as above. 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,300,000 DA). USAID will continue its research grant fund 

and work with the national agricultural research system to promote the adoption of appropriate 

agricultural technologies. Principal contractors and grantees: same as above. 

Increase Trade and Investment 

Increase Trade and Investment ($1,848,000 DA). USAID will continue support to various government 

ministries to improve Mozambique's trade and investment climate. Principal contractors and grantees: 

same as above. 

Protect and Increase the Assets and Livelihoods of the Poor 
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Protect and Increase the Assets and Livelihoods of the Poor ($2,113,000 DA). USAID will assist small 

farmers to improve productivity and will build upon disaster mitigation activities to incorporate risk 

management into agricultural research. To protect biodiversity, USAID will promote farming techniques 

that discourage slash-and-burn agricultural practices. Principal contractors/grantees: same as above. 

FY 2006 Program 

SO: 656-007 Labor intensive exports increased 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($526,000 DA). USAID continues to provide 

long- and short-term technical assistance to the Confederation of Mozambican Business Associations 

(CTA) that is strengthening the organization’s capacity to advocate for a more liberal business 

environment. USAID assistance facilitates the preparation, dissemination, and public debate of policy 

recommendations on economic and business conditions. Included in this work is proposed legislation 

such as a new labor law and issues ranging from land marketability, access to credit, and elimination of 

red tape to timely government payments and tax reform. Progress in these areas will make Mozambique 

more attractive to domestic and international investors. Principal contractor and grantee: Nathan 

Associates, Inc. and the CTA (both prime). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($1,483,000 DA). USAID began implementation of a tourism 

activity that provides long- and short-term technical assistance to a coalition of private sector tourism 

operators and the Ministry of Tourism. USAID’s assistance is helping Mozambique market itself as a 

tourist destination and fostering policy reforms in areas such as air transport that lower costs in the sector 

and stimulate tourist arrivals. Tourist destinations will be environmentally protected through the creation 

of (1) a nature reserve on Lake Niassa that protects the lake’s unique ecosystem (the world’s only 

surviving freshwater corals and 700 species of fish unique to the lake); (2) a wildlife sanctuary in 

Gorongosa National Park through a Global Development Alliance; and (3) the Pemba Bay Commission, a 

joint effort by the private sector, non-government organizations, and local and national government 

officials to manage development in and around the bay. These activities will create immediate local 

employment and build local capacity. Principal contractors and grantees: Nathan Associates Inc., World 

Wildlife Fund, The Carr Foundation (primes) and The George Washington University (sub). 

Increase Trade and Investment 

Increase Trade and Investment ($500,000 DA). USAID provides long- and short-term technical 

assistance to the Ministry of Industry and Commerce (MIC) to conduct trade analyses as well as 

formulate and implement better trade strategies. With USAID technical assistance, MIC is simplifying 

rules related to commercial and industrial licensing and introducing a simple and effective competition law 

to facilitate investment, especially in labor-intensive export industries. Principal contractors and grantees: 

Nathan Associates, Inc. (prime) 

FY 2007 Program 

SO: 656-007 Labor intensive exports increased 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($544,000 DA). USAID will continue to provide 

technical assistance and institutional support to CTA to strengthen its role as the preeminent private 

sector voice for policy changes that will increase growth in the private sector and in the economy in 

general. Principal contractors and grantees: CTA (prime). 
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Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($1,600,000 DA). USAID will provide long- and short-term 

technical assistance to the Ministry of Tourism and the coalition of private tourism operators to make 

Mozambique a more attractive and competitive international tourist destination. A major component of 

this assistance will ensure the protection of a variety of ecosystems. USAID also plans to identify 

additional labor-intensive sectors that it can support and stimulate. Likely candidates include the wood 

sector and horticulture, which also offer links to small farmers and agribusinesses assisted by USAID’s 

rural income program. Principal contractors and grantees: Nathan Associates, Inc. (prime) and others to 

be determined. 

Increase Trade and Investment 

Increase Trade and Investment: ($500,000 DA). USAID will provide long- and short-term technical 

assistance to MIC to strengthen its participation in the Integrated Framework for Trade Capacity Building 

and in the Southern Africa Development Community free trade area negotiations. Principal contractors 

and grantees: Nathan Associates, Inc. (prime) 

FY 2006 Program 

SO: 656-008 Increased use of child survival and reproductive health services in target areas 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($4,350,000 CSH). USAID is both providing technical 

assistance and training to MOH staff to improve the delivery of child health services and promoting 

policies that improve neo-natal care and increase community access to drugs. USAID is training 100 

health workers to provide quality immunization, malaria, nutrition, and newborn care services. USAID is 

facilitating the adoption of the Integrated Management of Childhood Illnesses (IMCI) service delivery 

approach, so health care workers ensure the overall well-being of a child, rather than focusing solely on 

his apparent symptoms. USAID is supporting malnutrition surveillance, promotion of exclusive 

breastfeeding, Vitamin A supplementation, and training for over 2,000 women on how to improve young 

child feeding practices. USAID technical assistance and training is building MOH capacity in planning 

and management. Four health care professionals are receiving pre-service public health training, and one 

medical doctor is being sponsored for a master's degree in public health. Principal contractors and 

grantees: Chemonics, Save the Children (SCF), World Vision (WV), Project HOPE, Pathfinder, and 

Population Services, International (PSI) (all prime). 

Improve Maternal Health & Nutrition 

Improve Maternal Health & Nutrition ($3,500,000 CSH; $500,000 prior year CSH). Technical assistance 

and training activities are improving antenatal, obstetric and post-partum care, with an added emphasis 

on malaria during pregnancy, maternal nutrition, and post-partum Vitamin A supplementation. Forty 

health workers are being trained in quality assurance. Protocols and guidelines are being developed to 

integrate maternal health activities with HIV counseling/testing. USAID technical assistance is supporting 

start-up activities for a 2007 census. Principal contractors and grantees: Chemonics, SCF, WV, Project 

HOPE, Pathfinder, PSI, and U.S. Census Bureau (primes); SCF and CARE (subs). 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases of Major Importance ($7,475,000 CSH). USAID is promoting the 

early diagnosis and treatment of malaria by training 60 health providers in case management and 
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laboratory diagnosis, and training 80 community health workers in detection/management of malaria. A 

sensitivity study of anti-malarials is being implemented in anticipation of initiating community-based 

distribution (CBD) of anti-malarials. USAID technical assistance ensures that appropriate policies and 

environmental control measures are in place in response to a new MOH DDT spraying policy. USAID is 

facilitating the procurement of a range of commodities to fight malaria, including rapid diagnostic test kits, 

anti-malarial drugs, sprayers, insecticides, long-lasting insecticide-treated bed nets and bed net 

retreatment kits. A tuberculosis (TB) implementation plan will be developed by the USAID-provided TB 

advisor. USAID’s training of 40 health workers and 60 community volunteers is reinforcing the direct 

observation treatment (DOT) approach for managing TB, and facilitating the integration of TB and 

HIV/AIDS activities. The diagnostic capacity of two TB laboratories will be improved by training lab 

workers, developing protocols, and procuring materials and equipment. Technical assistance is 

strengthening the MOH's capacity to monitor/respond to epidemics such as avian influenza, cholera, and 

meningitis. Principal contractors and grantees: Chemonics, SCF, WV, Project HOPE, Pathfinder, PSI and 

TB Control Assistance Program (TB CAP) (all prime), SCF and CARE (subs). 

Support Family Planning 

Support Family Planning ($2,036,000 CSH; $500,000 prior year CSH). USAID is strengthening the 

MOH’s family planning program by providing training and technical support for improved supervision and 

contraceptive procurement, including designing a contraceptive security strategy. Community-based 

distribution of contraceptives is increasing to cover at least 50% of target districts. Principal contractors 

and grantees: Chemonics, SCF, WV, Project HOPE, Pathfinder, and PSI (all prime), SCF and CARE 

(subs). 

FY 2007 Program 

SO: 656-008 Increased use of child survival and reproductive health services in target areas 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($4,600,000 CSH). USAID will continue technical assistance 

and training focused on immunization, malaria, nutrition, diarrheal disease, and IMCI. USAID will continue 

to introduce new products in targeted communities through CBD and to strengthen community 

participation in managing and influencing the delivery of health care services. Overall health systems 

capacity will be further improved by USAID through supervisory training, the development of systems to 

improve referrals and program coordination, and the roll-out of a computerized drug management 

information system. USAID will continue to support pre- and in-service public health training. Principal 

contractors and grantees: same as above. 

Improve Maternal Health & Nutrition 

Improve Maternal Health & Nutrition ($3,500,000 CSH). USAID’s training and technical assistance 

activities related to antenatal, obstetric, and post-partum care will continue. A community-based referral 

system will be developed to reduce delays in the provision of emergency obstetric care. USAID will 

provide technical assistance for evaluating and editing preliminary 2007 census data. Principal 

contractors and grantees: same as above. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases of Major Importance ($6,562,000 CSH). USAID will continue ongoing activities. USAID will continue to provide commodities for malaria treatment and control, training for 

tuberculosis laboratories, and training for new health providers in the DOT approach. Technical 

assistance for emergency preparedness will continue. Principal contractors and grantees: same as 

above. 
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Support Family Planning 

Support Family Planning ($1,267,000 CSH). USAID will continue to procure and distribute 

contraceptives, facilitate CBD, and provide training and technical assistance for family planning. Principal 

contractors and grantees: same as above. 

All family planning assistance agreements will incorporate clauses that implement the President's 

directive restoring the Mexico City Policy. 

FY 2006 Program 

SO: 656-010 Municipal governance increasingly democratic 

Promote And Support Anti-Corruption Reforms 

Promote and Support Anti-Corruption Reforms ($500,000 DA). At the municipal level, USAID is 

introducing citizen oversight mechanisms and more transparent administrative systems. Support for 

corruption reporting centers is being phased out in 2006, while elements of these centers will be 

incorporated into the Attorney General’s Central Office (AGO) to Combat Corruption. Principal 

contractors and grantees: Associates in Rural Development (ARD), AGO and others to be determined 

(TBD). 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($492,000 DA). USAID’s technical assistance 

and training in five of Mozambique’s 33 municipalities is enhancing municipal government performance 

by improving accountability, responsiveness, transparency, and service provision. USAID provides 

citizens with the skills and techniques needed to more effectively communicate their needs and priorities 

to their local representatives, while simultaneously helping citizens understand their rights and 

responsibilities through civic education. At the same time, municipal governments are learning to be 

more inclusive, transparent, and efficient through mechanisms such as public hearings, commissions, 

and open budget meetings. Specifically, USAID is delivering technical assistance and training to 

municipal officials on development planning, financial and human resources management, budget 

formulation, ethical and transparent public administration, and public relations. USAID is exploring 

opportunities to improve service delivery by providing limited commodity support or financing for 

community infrastructure projects, such as market construction or water and sanitation system 

improvements. Financing may be provided through a Development Credit Authority (DCA) program. 

Principal contractors and grantees: ARD (prime). 

FY 2007 Program 

SO: 656-010 Municipal governance increasingly democratic 

Promote And Support Anti-Corruption Reforms 

Promote And Support Anti-Corruption Reforms ($500,000 DA). USAID will continue technical assistance 

and training that reduce opportunities for corruption in targeted municipalities and increase citizen 

oversight of key municipal functions. Principal contractors and grantees: ARD, AGO, and others TBD. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($500,000 DA). USAID will continue to provide 

training and technical assistance to municipal governments to improve planning, financial management, 

and service delivery. USAID will help local governments develop new mechanisms for community 
13

participation, increasing transparency, and for completing priority infrastructure improvements. 

Simultaneously, citizens and local civic groups will be trained to become more effective participants in 

local government. USAID will also seek opportunities to partner with civil society organizations that 

advocate for decentralization. Principal contractors and grantees: ARD and others TBD. 
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Results Framework 

656-003 Increased use of essential maternal and child health and family planning services in 

focus areas 

Program Title: Maternal and Child Health 

 3.1: Increased access to community-based services 

 3.2: Increased demand for community-based services 

 3.3: Strengthened management of decentralized services 

Discussion: This SO will close in FY 2006. Most activities were transferred to SO 656-008 in FY 2005. 

Indicator data for FY 2005 are reported under SO 656-008. 

656-004 Improved enabling environment for private sector-led growth and development 

Program Title: Enabling Environment for Growth 

 4.1: Increased private sector role in development of economic policy, legislation and regulations 

 4.2: Improved policies and facilities encourage trade and investment 

Discussion: This SO will close out in FY 2006. Most activities were transferred to SO 656-007 in FY 

2005. Indicator data for FY 2005 are reported on under SO 656-007. 

656-006 Rapid rural income growth sustained in target areas 

Program Title: Rural Incomes 

 6.1: Increased smallholder sales of agricultural production 

 6.2: Rural enterprises expanded 

 6.3: Transport infrastructure improved 

656-007 Labor intensive exports increased 

Program Title: Exports 

 7.1: Increased market access 

 7.2: Enabling environment for business transactions improved 

 7.3: Capacity of labor-intensive industries strengthened 

656-008 Increased use of child survival and reproductive health services in target areas 

Program Title: Maternal and Child Health 

 8.1: Increased access to quality child survival and reproductive health services in target areas 

 8.2: Increased demand at community level for child survival and reproductive health services 

 8.3: More accountable policy and management 

656-009 HIV transmission reduced and impact of the AIDS epidemic mitigated 

Program Title: HIV/AIDS 

 9.1: Civil society linked effectively to national HIV/AIDS response 

 9.2: Behavior change enhances HIV/AIDS prevention and care 

 9.3: Essential services utilized 

656-010 Municipal governance increasingly democratic 

Program Title: Municipal Governance 

 10.1: Increased participation by citizens and civil society in target areas 
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 10.2: Targeted municipal governments demonstrate more democratic decision making