Establishment of economic infrastructures and enabling value chains supports poverty reduction efforts in Mozambique

Women's Voice 2

Taking a local economic development approach, ProDEL generated income and employment opportunities in rural areas through improved public services and infrastructure targeted at micro, small and ­medium enterprises

August 4, 2021
  • SDG: #1, #8
  • SECTORS: Development Consulting
  • COUNTRIES: Mozambique
  • DONOR: EU and the Government of Sweden
  • CLIENT: Government of Mozambique
  • CONTRACT VALUE: €32.5 million
  • DURATION: 2012–2019

Despite Mozambique’s significant economic growth since the early 1990s, there are still high levels of poverty in the country, particularly among its rural population. In an effort to support the country’s poverty reduction measures, the Local Economic Development Programme (ProDEL) was developed under the framework of the 10th European Development Fund. It was signed by the Republic of Mozambique and the European Union in 2012 and coordinated by Mozambique’s National Directorate for Rural Development.

Economic infrastructures and enabling value chains

The initiative contributed to poverty reduction through income generation and the creation of employment opportunities in rural areas in the three provinces of Gaza, Inhambane and Sofala. More specifically, it encouraged improvement of public services for local economic development (LED) and promotion of public investment in local public economic infrastructures and value chains that encourage the participation of local micro, small and medium enterprises (MSMEs). NIRAS monitored progress on the implementation of economic infrastructure development.

Running from 2012–2019, ProDEL consisted of three components, namely 1) public services for local economic development, 2) local economic infrastructure, and 3) value chains. NIRAS carried out feasibility studies of identified projects and provided the technical assistance for the implementation of infrastructure projects for component 2 (concerning buildings) that contributed to economic growth and improved opportunities in rural Mozambique areas. The project component directly benefitted 75,000 people. Furthermore, for this component, funds were made available through 35 grants to 24 districts and 11 municipalities in the three target provinces. Each of the entities covered contributed with a minimum of 10% of the total value of each grant. In total, 54 infrastructures were built, rehabilitated, rebuilt or expanded under the programme, including markets, roads, warehouses, slaughterhouses, and dip tanks, among others.

More than 75000

people benefitted from ProDEL


infrastructures built, refurbished or expanded

About 2500

people supported with training

Support To Economic Infrastructure

One of the results of the programme related to the promotion of public investment in local economic infrastructure, where ProDEL allocated investment funds for the development and operation of small-scale public economic infrastructures and respective services, which had a direct effect on improving competitiveness and reducing the costs of business activities.

Achievements of ProDEL

  • Implementation of economic infrastructures that supports production in 24 districts and 11 municipalities;
  • Strengthened technical capacities of 2500 people, as well as institutional capacities in diverse subjects;
  • Management and maintenance of infrastructures;
  • Local economic development planning was implemented, in addition to the establishment of 10 document libraries through training, provision of equipment (including cabinets, computers, books) in the districts of the provinces of Gaza (Bilene and Chibuto), Inhambane (Inharrime and Massinga) and Sofala (Búzi and Nhamatanda) and municipalities the cities of Xai-Xai, Inhambane and Beira;

ProDEL demonstrated the importance of an effort on the part of local entities to train technicians in the areas of infrastructure – including procurement, management and maintenance of works – as well as and financially, namely related to management of financed funds. In the future, prior to the launch of such programmes, work should be carried out to raise awareness of the target groups in relation to the concept and objectives of the programme to be financed. This will allow a better result both in occupation, maintenance up to the point of valuing the object of financing as a pole of local development.

Project scope

  • Improving public services to promote local economic development
  • Directing public investment towards public local economic infrastructure
  • Promotion of value chains that encourage the participation of small and medium-sized local companies
Johan Boerekamp

Johan Boerekamp

Office Manager

Maputo, Denmark

+258 21 486 984