2013:43 Sida Decentralised Evaluation Andrew Lambert Mateo Cabello Padil Salimo Hermes Sueia Mid Term Review of the Malonda Program July 2010-June 2013 Final Report Mid Term Review of the Malonda Program July 2010-June 2013 Final Report January 2013 Andrew Lambert (team leader) Mateo Cabello Padil Salimo Hermes Sueia Sida Decentralised Evaluation 2013:43 Sida Authors: Andrew Lambert (team leader), Mateo Cabello, Padil Salimo and Hermes Sueia The views and interpretations expressed in this report are the authors’ and do not necessarily reflect those of the Swedish International Development Cooperation Agency, Sida. Sida Decentralised Evaluation 2013:43 Commissioned by the Embassy of Sweden in Maputo, Mozambique Copyright: Sida and the authors Date of final report: January 2013 Published by Citat 2013 Art. no. Sida61671en urn:nbn:se:sida-61671en This publication can be downloaded from: http://www.sida.se/publications SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Address: S-105 25 Stockholm, Sweden. Office: Valhallavägen 199, Stockholm Telephone: +46 (0)8-698 50 00. Telefax: +46 (0)8-20 88 64 E-mail: [email protected]. Homepage: http://www.sida.se Mid Term Review of the Malonda Program (July 2010-June 2013): January 2013 Table of Contents Executive Summary .................................................................................................................. 2 1. Introduction .............................................................................................................. 12 1.1. Purpose of the Review ........................................................................................................ 12 1.2. Wider Context of the Review .............................................................................................. 12 1.3. Review Outputs ................................................................................................................... 13 1.4. Organisational Aspects ....................................................................................................... 13 1.5. Work Plan ............................................................................................................................ 14 2. Methodology ............................................................................................................ 14 2.1. General Approach ............................................................................................................... 14 2.2. Evaluation Questions .......................................................................................................... 15 2.3. Document Review ............................................................................................................... 15 2.4. Field Data ............................................................................................................................ 15 3. Programme Assessment ............................................................................................ 16 3.1. Programme Strategy ........................................................................................................... 16 3.2. Programme Planning and Monitoring ................................................................................ 17 3.3. Programme Management ................................................................................................... 19 3.4. Results Monitoring .............................................................................................................. 21 3.5. Financial Governance .......................................................................................................... 26 4. Pillar Results ............................................................................................................. 27 4.1. Pillar 1: Promote and facilitate investment in agriculture, forestry, tourism and other targeted sectors. ................................................................................................................. 28 4.2. Pillar 2: Facilitate improvements to the business enabling environment .......................... 34 Associations for Private Sector Development in Niassa are largely ineffective in .................................. 34 4.3. Pillar 3: Facilitate improved supply of financial, legal, accounting and other business services available to businesses .......................................................................................... 37 Stakeholders feedback ................................................................................................................ 44 4.4. Pillar 4: Facilitate improved community-investor relationships ......................................... 48 5. Conclusions ............................................................................................................... 55 5.1. Conclusions from the Programme Assessment .................................................................. 55 5.2. Conclusions from the Pillar Analysis ................................................................................... 56 5.3. Programme Assessment ..................................................................................................... 58 5.4. Strategy Recommendations ................................................................................................ 63 5.5. Swedish Engagement in Niassa ........................................................................................... 65 Annexes..................................................................................................................................... 67 5.6. Annex 1: Time line: Private sector development program in Niassa, Malonda ................. 68 5.7. Annex 2: Documents consulted .......................................................................................... 69 5.8. Annex 3: Schedule of Visits and Persons Interviewed ........................................................ 71 5.9. Annex 4: Results Matrix, 2011 & 2012 ................................................................................ 77 5.10. Annex 5 Terms of reference .......................................................................................... 83 5.11. Annex 6: Development Options for Sociedade Malonda ............................................. 86 5.12. Annex 7: Financial Services for Rural Poverty Reduction in Mozambique ................... 90 ITAD Mid Term Review of the Malonda Program (July 2010-June 2013): January 2013 Acronyms ADC Community Development Association ADEL Local Economic Development Agency AGECA Association of Cuamba Economic Agents AMODER Associação Moçambicana de Desenvolvimento Rural ASCA Accumulative Savings and Credit Associations CDF Community Development Fund CNRMCs Community Based Natural Resources Management Committees COGEP Participatory Natural Resource Management Councils CPPM Caixa de poupança Postal de Moçambique CSO Civil Society Organization FARE Rural Finance Support Programme GoM Government of Mozambique IGEPE Mozambican State Enterprise Holding Institute / Instituto de Gestão das Participacões do Estado ITC Community Land Initiative / Iniciativa de Terras Comunitárias M&E Monitoring and Evaluation M4P Making Markets Work for the Poor MF Malonda Foundation MLT Mozambique Leaf Tobacco MSMEs Micro, small and medium enterprises MTR Mid-Term Review MoU Memorandum of Understanding NGO Non Government Organization PROMER Support Program for Rural Markets SdM Sociedade de Malonda / Malonda Company Sida Swedish International Development Agency UCA National Peasant Union UNDP United Nations Development Program UPCN Niassa Peasants Associations Union ITAD Mid Term Review of the Malonda Program (July 2010-June 2013): Final Report: January 2013 Executive Summary This Mid Term Review (MTR) of the Malonda Foundation (MF) examines its progress in executing its 2010-2013 strategic plan over the period July 2010 to October 2012. The purpose of the review is to contribute to an understanding of MF’s results in private sector development and to the engagement of stakeholders in a dialogue on what are the drivers and the constraints behind economic growth in the province and the role that facilitation by MF can play in further developing the private sector in conjunction with government. The findings of the MTR will be used as a basis for Sida’s decision on whether to extend its agreement with MF beyond June 2013. The central finding of the review is that MF has achieved a low rate of implementation against its expected results, which has translated into very limited impact on its main goal, the reduction of poverty in Niassa. The following table documents the main outputs achieved during implementation of its 2010 strategic plan and is based on a detailed assessment of each pillar and the analysis of results against targets for 2011 and 2012 as set out in Annex 4. Table 1: MF Key Results, 2010-2012 Pillar 1: Investment Pillar 2: Enabling Pillar 3: Financial and Pillar 4: Community Promotion Environment Business Services Relations MF has helped the MF has not instituted MF supported two new Uncertain progress commercial farming any significant providers of legal services due to company AC improvements to the and accounting in Lichinga Limited success in Matama commence business environment (against a target of three). building COGEP operations with 450 MF supported MF supported five new members’ capacity in ha under soya business financial providers to the management of cultivation in 2012, groups/associations become established