MozTrabalha 2016-2021
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Several of Mozambique's development challenges to tackle the persisting and wide-spread poverty - especially in rural areas - are related to the current employment situation. During the last decade, the country has experienced a pattern of "exclusive" rather than "inclusive growth" where capital intensive, rather than labour intensive investments, have been th...
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- B03 - Contributions to specific-purpose programmes and funds managed by international organisations (multilateral, INGO)
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Sustainable Development Goals
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Several of Mozambique's development challenges to tackle the persisting and wide-spread poverty - especially in rural areas - are related to the current employment situation. During the last decade, the country has experienced a pattern of "exclusive" rather than "inclusive growth" where capital intensive, rather than labour intensive investments, have been the main driving force behind the high growth numbers which have created few productive employment opportunities or been translated into any form of structural transformation (Arndt et al, 2012). Around 80% of the labour force is in the agricultural sector with a large share of subsistence farmers, while other potentially labour intensive sectors, like manufacturing, has stagnated at a share of 3.4%. Productivity is low, especially in the agricultural sector. An estimated 5.4 million people work in the MSME sector with 4.5 million MSME owners and about 850,000 employees (SME survey 2012). Most of them are active in the huge informal sector. The number of enterprises does not reflect a culture of entrepreneurship but rather a situation where many choose it as a strategy for survival. MSME productivity is generally low. 22.6% of the labour force is unemployed with higher numbers for women (25%) and youth (40.7%). Women are over represented in the informal sector (IOF Trimester 2 Nov-2014-Jan 2015). An unknown but large number of people in employment are underemployed or "working poor". The country's demographic structure puts a pressure on the labour market to create productive jobs that absorb the 300,000-500,000 people annually entering the labour market. Additional challenges include gender specific constraints to employment, a large informal sector, low levels of job security, high income uncertainties, low level of occupational safety and health, child labour, work related discrimination, and limitation in the freedom of association. The program has a budget of 80 MSEK over five years, including an inception period of nine months where some analytical work will be done in order to inform the remaining program design and the more detailed work plan and budgets for the implementation phase. Sida is initially the only funder and only one agreement for the entire implementation period is proposed. The expected impact of the program is “An increased number of Mozambican women and men, in particular youth and those living in rural areas, have access to decent employment opportunities as a result of both institutional and market development support provided”. It is estimated that the program will be able to improve employment related policies and regulations in Mozambique, improve the coordination and implementation of employment related initiatives, improve the social dialogue, and it is estimated to reach 15,000 beneficiaries living on less than 2 dollars/day in rural Mozambique, out of whom at least 50% will be female and 60% will be young people. The program has two components where Component 1 is focusing on strengthening the capacity and coordination at the national/institutional/macro level, and Component 2 on creating and improving employment on the local/meso/micro level. The program will be implemented by ILO who will set up a Project Management Unit (PMU) in Maputo initially consisting of eight staff with backstopping support from ILO regionally (Lusaka, Pretoria, and Abidjan) and from the HQ in Geneva. The main external implementing partner will be the Ministry of Labour (MITESS, including LMO and INEFP). It will also include six other ministries, some provincial and district governments, and more than ten labour market partners including private sector actors. A Project Steering Committee will be established to monitor the progress of the program and it is likely to become a sub-commission of the already existing consultative commission for employment CCT (Commisao Consultiva do Trabalho).
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Total aid 90,612,832 SEK distributed on 0 activities
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Result
Main results under Outcome 1 - Formulation and approval by the council of ministers of the first and second National Employment Policy (NEP) Implementation Plan (PAPE I & II) for the periods 2017-2020 and 2021-2024. MozTrabalha provided technical assistance, training and research to support the implementation of the NEP and complete the PAPEs. 21 sectors (each representing different ministries and governmental branches) were integrated into the implementation of the NEP, and through the PAPE, the Policy continues to be actively implemented more than 5 years after its adaptation. The government of Mozambique has reported that due to the implementation of the NEP more than 1,894,045 new jobs were created between 2015 and 2019, out of which 465,884 were for women (based on data in labor market bulletins). - Institutional strengthening of e.g. the Secretary of State for Youth and Employment (SEJE); consolidation and expansion of the Commission for Labour Mediation and Arbitration (COMAL); the National Employment Institute (INEP); the MIC Institute for the Promotion of SMEs (IPEME); and the Labour Market Observatory (LMO). Evidence has been also gathered to show that these institutions have increased their pool of resources and are more capable of delivering an increased number of better services in the employment domain. - Strengthened Social Dialogue in Mozambique by building the capacities of the social partners. Unions were perceived as the weaker player among the social partners, and experienced different challenges in the discussions regarding minimum wages and other labour-related issues. MozTrabalha systematically built the capacity of Unions. As a result, and despite the COVID-19 crisis, the unions were able to fully participate in the debates and a new increase in the minimum wage was approved, ranging from 1.5% to 10% depending on the sector. Employers Organizations have been strengthened and enabled to provide better services to their members. Under the leadership of Employers organization CTA, an assessment of the Mozambican environment for sustainable enterprises (EESE) was undertaken and used to identify priority areas of policy reforms to support the dialogue, advocacy and public policy work of organized business and organized labour. Thanks to this, CTA has developed a contextualized Business Agenda to enable the organization to pursue a structured lobbying and advocacy approach to influence policies, legislation and regulations towards sustainable enterprises. Main results under Outcome 2 - Within the construction value chain, the Employment Intensive Investment Program (EIIP) approach was introduced. This included implementing three pilot interventions followed by dissemination and communication to institutionalize the approach a sa means of generating employment. The targeted institutions included the Ministry of Public Works, Housing and Water Resources (MOPHRH). MozTrabalha trained approximately 150 people, 80 young people and 35 women in EIIP techniques. Some of the pilots and methods were included in the MOPHRH guidelines for tertiary roads construction. The Institute for Vocational Training and Labour Studies (IFPELAC) has also included the gender sensitive EIIP tools as part of their curriculum. A number of other stakeholders, including UN agencies and Development Banks, were also approached, resulting in additional financial resources to continue implementing the approach. - The work within the horticultural value chain was relatively small scale but managed to support 300 producers to increase their productivity and get better access to provincial markets. Incentives are in place for actors along the chain, and the role of the market broker (in this case AceAgrarios) has proven instrumental in making the dynamic work. Main results under Outcome 3 (Covid support) - Informal economy. Technical and financial support given to workers' organisation CONSILMO resulted in the implementation of One-Stop Shops, in 3 Maputo markets. Through these, a new and improved range of services are being provided to informal operators, including increased access to information, access to finance, market linkages, training, amongst others. - Support to keep existing jobs of women and to help women-led businesses pivot to develop Personal Protective Equipment (PPE), and create an additional source of income for 4 women-led associations in the production of more than 10,000 facemasks. - Under the pilot of the Resilient Enterprises in Beira (ERB), 25 SMEs (44% led by women and 72% led by youth) were trained in the implementation of business continuity planning to ensure income generation amidst the Covid-19 pandemic. - 215 informal operators were provided with Business Development Services, with a total of 201 business plans (of which 92 are women-led companies and 45 are young entrepreneurs) resulting in the creation/recovery of 329 jobs (of which 149 for women)
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