Evaluation of the Mozambique private sector rehabilitation III program, grant number 656-K-601B

Evaluation is based on document review and interviews with beneficiaries. The CIP, by providing needed inputs to private sector farmers and agricultural manufacturing firms in the Green Zones around Maputo and in the Xai-Xai and Chokwe target areas, has met its goal of stimulating agricultural production and alleviating (though by no means eliminating) food shortages in the Maputo area. As in previous years, the CIP has been one of the few sources of agricultural inputs and of raw materials for private manufacturing firms. The CIP was also well-managed and implemented in a timely manner, despite the inadequacy of financial management support services provided by USAID/Mbabane. It should be noted, however, that contrary to the PAAD there remains a high level of public sector involvement in the implementation of the CIP (including some questionable practices regarding the allocation of CIP goods and the charging of fees). Recommendations are made to the Office of the A.I.D. Representative (OAR/Maputo) to (1) maximize private sector involvement in CIP implementation; (2) improve financial management by training a local accountant and ensuring regular reporting on local currency accounts; (3) implement the planned follow-on CIP at current funding levels and in the same target areas, as expansion may require additional staffing and/or lead to security problems; (4) continue its low-key approach to policy dialogue (the CIP is too small to leverage major policy changes) and develop a better understanding of policy constraints on private sector development; and (5) utilize counterpart funds in a way consistent with IMF targets in Mozambique.