Sida Monitoring Consultant to the Private Sector Development Programme Malonda

Sida decided to support the private sector development programme, hereinafter referred to as the Malonda programme, in the Niassa province in Mozambique for a 3-year period, 1 July 2010- 30 June 2013, with a total of 61 MSEK to implement the programme and another 3 MSEK to strengthen Sida’s monitoring of the programme.

The Malonda programme was implemented by the Malonda Foundation (MF) (www.malonda.co.mz), a Mozambican not-for-profit foundation that was established in 2006 with the purpose of promoting private sector development specifically in the Niassa province. The first Malonda programme was initiated in 2000 and has been a joint development effort by the Government of Sweden, through Sida, and the Government of Mozambique. Sida was the only external financier to the programme. MF has during the last 10 years successfully worked with promoting private sector development in the province, partly from attracting large scale investments in forestry plantations but also from working with tourism and commercialisation of agriculture.

The Malonda Foundation developed a new Strategic Plan (SP) for the period 1 July 2010- 30 June 2013. The SP formed the basis for the Swedish support. The SP was a response to a number of challenges in the Niassa province such as extreme and widespread poverty, high unemployment rates, low agricultural production and weak link to markets and credits, a weak private sector and a business climate that is unfavourable in many areas.

The overall objective of the SP was ‘A sustained increase in investment in targeted sectors’ and the programme goal was to reduce poverty through increase in incomes of households. Malonda focused on investment and facilitation of private sector development in the province mainly around four main pillars of intervention:

1. Facilitate investment in agriculture, forestry, tourism and other targeted sectors;
2. Facilitate improvements in the business enabling environment;
3. Facilitate improved supply of business development services such as legal and financial services; and
4. Facilitate improved relationships between investors and communities in the province.

In the development of the SP, Malonda has adopted a strategic focus that is in line with the Making Markets Work for the Poor approach (M4P). The M4P approach helped Malonda to define the strategic areas of intervention that focuses on facilitating changes in the functioning of market systems so that they better serve the poor.

The strategic plan had a results framework that more in detail specifies the activities and expected results from each pillar of intervention. The expected results at the overall objective level at the end of the strategy period will be measured through:

1. The number of new and expanded investments facilitated;
2. The value of new and expanded investments facilitated; and
3. The number of jobs created as a result of those investments.