MOZAMBIQUE

Water and Sanitation Profile

SECTOR FRAMEWORK
POPULATION AND HEALTH STATISTICS
The 1995 National Water Policy and the National
Population (2006) 21 million Water Development Program (NWDP) reformed and
clarified the allocation of administrative, regulatory
Proportion of population living in urban areas 35%
and development roles in the WSS sector. The policy
Urban/Rural population growth rates
8.0 / 0.6%
sought to balance strong regulation with delegated
(1980-2000)
management (the Delegated Management
Diarrheal deaths/year (2004) 26,900 Framework- DMF), which allowed transfer of
152/1000 operational responsibilities for water supply to private
Under age 5 mortality rate
live births companies. Underpinning the reforms was the new
Under age 5 mortality rate due to diarrheal Water Tariff Policy. This policy set out a more rational
16.5%
disease (2000) and commercially-oriented tariff regime that would
support cost recovery and long-term financial
SECTOR OVERVIEW sustainability of the water supply system.
Mozambique has limited access to raw water supplies
The policy focuses on urban areas, with weak
and receives roughly 50 percent of its surface water
attention on rural WSS issues. Mozambique’s poverty
from upstream neighbors; approximately 75 percent
reduction strategy is aligned with the National Water
of the population relies on groundwater sources. In
Policy, but constraints to further WSS development
addition, Mozambique is particularly vulnerable to
remain. These constraints have been primarily
cyclical natural disasters (e.g. floods and drought).
attributed to the misalignment of WSS sector funding,
Despite these vulnerabilities, Mozambique’s water
no clear rural strategy, and capacity issues within the
supply and sanitation (WSS) sector has implemented
National Directorate for Water Affairs (DNA).
policy and institutional reforms that have increased its
capacity to provide urban WSS services, but rural DNA has responsibility for the entire water sector. It
areas lag far behind. manages most potable water sector schemes in the
rural areas, as well as in smaller towns and cities,
Reforms have improved water supply regulation,
DNA ‘s ability to fulfill this role is limited and donors
dependability, quality and the financial viability of
have had to step into the rural sector – often in an
many urban service providers; however, these have
been largely dependent on outside donor funding.
The issues to be addressed in the future include: the WATER AVAILABILITY IN MOZAMBIQUE
ability to mobilize funding through implementation Renewable water resources per capita,
3 10,531
capacity growth; instituting robust monitoring and m /person/year (1960-2007)
3
evaluation (M&E) systems; reducing dependence on Water withdrawals, m /person/year (2000) 35
outside funding sources by increasing cost recovery Projected water resources per capita,
3 8,512
strategies; and balancing urban and rural sub-sector m /person/year in 2015

budget allocations and expenditures. Note: 2015 projected water resources per capita is a straight-
line regression calculation based on population growth rates
with no adjustment for consumption or technology changes

1
KEY AGENCIES recovery, affordability, quality, and extension of
Contact service. Overall, the sector framework is rational and
Agency Description
Information provides solid underpinnings for further development
Ministry of • Overarching ministry Felício Zacarias of the sector’s financial and managerial capacity.
Public Works for water sector Tel: 258-21-430028
and Housing issues. THE URBAN SUB-SECTOR
(MOPH)
The major urban areas have received substantially
National ƒ Policy and strategy Rui Gonzales more attention from both the government and donors
Directorate of development
Water (DNA) ƒ Overall responsibility in terms of both capacity building and financial
for WSS sector support. The success of the urban sector and FIPAG
Water ƒ Economic and other Sr. Manuel and CRA as effective institutions has meant that the
Regulatory regulation of water Alvarinho
sub-sector is attracting increasing investment and
Council (CRA) systems
improving both reliability and sustainability of service.
Investment ƒ Own infrastructure in Pedro Paulino
and Assets some urban areas
When it was established in 1998, FIPAG was
Fund for and leases out the responsible for the five largest cities. By 2007, FIPAG
Water Supply management to
(FIPAG) private operators
was responsible for 14 cities and towns. FIPAG now
manages an investment portfolio of over US$350 million.
FIPAG contracted a private operator, Aguas de
uncoordinated fashion with insufficient follow up and Moçambique (a local operator 70% owned by Aguas
maintenance. de Portugal), for the 4-year management contract for
In the urban areas, delegated management was the water systems in Beira, Nampula, Pemba and
adopted in 1999 for the large systems covering the Quelimane. The same operator also won a 15 year
five main cities supported under the NWDP. As part of lease contract for the water system of Maputo.
this reform program, two new institutions were In many other areas, FIPAG is establishing
developed: Fundo de Investmento e Patrimonio do autonomous water companies in partnership with
Abastecimento de Agua (FIPAG) and Conselho de Vitens (a Dutch operator) under loans from the AfDB and
RegulaqZo do Abastecimento de Aguas (CRA). Dutch trust funds. Unfortunately, the coverage ratio
FIPAG is a public entity which acts as asset holder has been declining over the past decade. Heavy
and investment manager in the sector. FIPAG leases immigration is primarily responsible for the declining
out operations and management to private operators ratio, but other constraints include non-revenue water
for defined time periods. FIPAG has the responsibility averaging 50 percent in urban areas due to poor
for investment and financial management related to
rehabilitation and expansion of water supply assets,
achievement of efficiency in the sector, and the
monitoring and enforcement of contracts in the sector.

CRA is an independent regulatory agency responsible

for balancing the interests of consumers with
commercial principles to ensure a viable and
sustainable sector under the delegated management
framework. CRA regulates the tariff regime and sets
tariffs annually to ensure a balance of commercial
viability and consumer affordability. CRA reports
directly to the Council of Ministers.

To move the sector forward, the DNA, FIPAG and

CRA will need to strike a balance between
government subsidies for water services, cost-

2
 percent. The needs in these areas will create an
additional pressure on the sector institutions.

DONOR INVOLVEMENT
Sustainability remains the biggest weakness in
Mozambique’s donor-financed water and sanitation
sector interventions. A recent study for the Japan
International Cooperation Agency (JICA) suggests
that many projects constructed as recently as two
years ago are already broken; only 21 percent of
JICA-financed water points in Mokuba are considered
to be operating as designed, with similar results in Ile
(20 percent), Alto-Molocue (32 percent), and Gurue
(17 percent). In addition, the accumulation of
accounts payable by the government ministries
coordinating donor involvement has noticeably
delayed the realization of some projects. Overall,
metering, physical losses in the distribution system, M&E systems need significant improvements so that
and illegal connections. In addition, human resource transparency, project timelines, and cost effectiveness
management has not received the attention needed are better tracked. Some donors have symbolically
to increase urban WSS service capacity. Urban cut aid in recent months due to corruption in the
service providers will need to concentrate on government.
instituting strategic corporate staffing and retention
Government and donors created a water and
policies in order to help improve operations and
sanitation working group to harmonize donor
maintenance.
initiatives and government implementation of WSS
THE RURAL SUB-SECTOR projects. The Grupo de Água e Saneamento (GAS) is
The rural areas are served mainly through small a technical subgroup to a larger donor coordination
piped village systems and point source (boreholes body that serves as a forum for government and
with hand pumps). A demand driven community major sector donors to discuss and evaluate sector
managed model was developed in the early 2000s progress. GAS includes representatives from DNA,
and piloted successfully in a number of communities major sector donors such as the Swiss Development
but hasn’t been rolled out in a significant way yet. Corporation, the Canadian International Development
Agency, JICA, the Water and Sanitation Program of
The World Bank estimates that up to 35 percent of
the World Bank, and the United Nations Children’s
rural systems are not working at any one time due to
Fund. It also includes representatives of international
a limited capacity within DNA that leads to
NGOs (CARE, Helvetas, and WaterAid) as well as
underspending, poor procurement practices, and
major private sector firms like Cowater working in
weak financial management. The government and
Inhambane.
donors have responded with a recent agreement to
put a sector-wide approach program (SWAP) in place
for the rural areas. The SWAP harmonizes sector
planning and monitoring, and provides for more
effective aid.

Still to be addressed are the requirements of smaller

cities and towns. There are over 33 municipalities in
Mozambique and the urban growth rate averages four

3
DONOR ACTIVITIES CONTACT INFORMATION

ƒ Urban, peri-urban and small town water supply infrastructure

Jane Walker (Washington DC)
development
The World Bank Nwalker @worldbank.org
ƒ Institutional reform and management capacity building
Tel: 202-458-2703
ƒ Private sector participation

Joseph Narkevic
jnarkevic@worldbank.org
ƒ Village and point source facilities development Tel: 258-82-441-2130
Water and Sanitation
ƒ Sustainability and demand-led reforms
Program
ƒ Community management support Valentina Zuin
vzuin@worldbank.org
Tel: 258-82-536-5205

The African Alice HAMER

ƒ Urban and rural water supply infrastructure development
Development Bank MZFO@afdb.org
ƒ Management capacity building
(AfDB) Tel: 258-21326409

Denmark/DANIDA ƒ Watershed protection and other water resource management support

ƒ Rural water resources development

Takashi Ito
JICA ƒ Supporting human resource capacity building in service providers
Tel: 258-21-486357
management

Millennium ƒ Urban and rural water and sanitation infrastructure development Emilio Muchanga
Challenge ƒ Institutional capacity building at national and local levels emuchanga@yahoo.com.br
Corporation (MCC) ƒ Policy reforms Tel: 258-82-315-2330

ƒ Water, sanitation, and hygiene (WASH)

maputo@unicef.org
UNICEF ƒ Policy reform, decentralization and advocacy of access by children to
Tel: 258-21-481-100
safe drinking water and sanitation

ƒ General budget support with 65% going to priority poverty areas maputoembassy@dfa.ie
Irish Aid
ƒ Rural water supply development at provincial level Tel: 2581 491 440

Additional information and sources: Statistics were compiled from the WHOSIS database, WRI-Earthtrends Water Resources and Freshwater
Ecosystems database, and the UN MDG Indicators database. Other sources include the 2006 African Development Bank’s “Getting Africa on
Track to Meet the MDGs in Water Supply and Sanitation,” 2007 OECD-Mozambique Annual Economic Outlook Report, World Bank Water
Services and Institutional Support Project Appraisal Document (2007).

This Water and Sanitation Profile was prepared under the Advancing the Blue Revolution Initiative (ABRI). ABRI is funded by the U.S.
Agency for International Development and addresses some of the most challenging water issues in the Middle East and Africa including the
lack of access by the poor to improved water and sanitation services, inefficient and nonproductive water use, and transboundary river basin
management. ABRI works closely with host country governments, actively pursues co-investments from the private sector, reaches out to like-
minded foundations, and partners with regional institutions.