US embassy cable - 05MAPUTO89

UNCLAS SECTION 01 OF 02 MAPUTO 000089 
 
SIPDIS 
PLS PASS AF/S TREGER AND AF/EPS DECQUIR 
E.O. 12958: N/A 
TAGS: EAID, MZ, SSH 
SUBJECT: FY05 SPECIAL SELF-HELP (SSH) FUNDING REQUEST - 
MOZAMBIQUE 
 
REF: STATE 06604 
 
1. Post requests USD 65,000 for the Ambassador's Special 
Self-Help Fund in FY05. 
 
2. Mozambique has experienced rapid economic growth for 
the past decade, registering an 8-10% increase in GDP per 
year. Further, the country's lead political parties, 
Frelimo and Renamo, on opposite sides during a 
devastating civil war that ended in 1992, have since 
competed largely peacefully in three general elections 
for the presidency and seats in the National Assembly. 
These achievements deem Mozambique an African success 
story, economically and politically. However, a sharp 
dichotomy exists, as economic growth has not translated 
into increased opportunities or significantly improveded 
standards of living for all of the poor, particularly in 
many rural communities. According to the most recent 
household survey taken by the Mozambican Ministry of 
Planning and Finance, fifty-four percent of the 
population lives below the poverty line, making 
Mozambique still one of the world's poorest nations. 
Rural per capita income is estimated at $70/year in the 
central and northern provinces. Mozambique ranks at 170 
of 175 countries on the 2003 UN Human Development Index. 
Based on 2002 data, the estimated HIV/AIDS prevalence 
rate for adults ages 15-49 was 13.6 percent. The 
population's HIV/AIDS rate continues to rise, with the 
estimated 2004 prevalence rate at 15 percent among adults 
ages 15-49. The development corridors, which handle 
Mozambique's transit and national trade, register 
HIV/AIDS rates as high as 26.5%. Sixty percent of the 
adult population is illiterate, with adult women's 
illiteracy rate at more than 70%. If Mozambique is to 
truly succeed, the GRM must direct more resources to 
development needs and provision of basic services 
(health, education, water) to its people, especially in 
rural areas where most of the people reside. 
 
3. The Special Self-Help Fund is critical to the 
Mission's effectiveness in encouraging the GRM to invest 
in its people and the advancement of their well-being. In 
FY04, Post funded twelve projects in the areas of 
education and socio-economic development. Projects were 
spread across six of Mozambique's ten provinces. Below 
is a list of some of the items provided with the funds. 
- a health clinic in remote northern Mozambique; 
- chemistry, biology, and physics laboratory material to 
a high school with over 4,000 students; 
- irrigation equipment to farmers living in a dry region 
on the border with Malawi; 
- an environmental library in an environmentally- 
vulnerable area (foresting, coastal resources); 
- sewing machines to women's organizations. 
Projects are sustainable and benefit communities. 
Investments in education, health, sanitation, and 
agricultural capacity have brought groups together, 
creating critical linkages and supplying communities with 
vital resources. The Mission's ability to play a role in 
development and be on the front lines of poverty 
alleviation for the rural and urban poor sets an example 
for the government of Mozambique and positively portrays 
the USG's role in Mozambique. 
 
4. In 2005, the Mission is keen to use SSH projects to 
support the GRM's poverty reduction strategy (PARPA), 
approved by the Mozambican Council of Ministers in April 
2001. PARPA is the GRM's top national priority through 
2005, and supporting PARPA is one of the tactics in the 
Mission Program Plan. Additionally, aligning SSH 
projects with GRM priorities will strengthen bilateral 
relations. This is particularly important in 2005, when 
a new government under president-elect Armando Guebuza 
takes office. 
 
5. We request USD 65,000 in funding for the Special Self- 
Help Fund for 2005. New focal areas will include but not 
be limited to: 
- Women and Girls' Programs Women and young girls are 
in need of assistance, particularly in rural areas. Post 
will select projects that will generate income for 
women's groups. By improving living standards, women 
will have greater opportunities to succeed in their 
community and become leaders. 
- Agricultural capacity-building - Rural communities must 
survive off of their own agricultural production. They 
frequently need access to inputs and technical training 
to provide sufficient food for their families. The hope 
is that resources and training will improve quality of 
life and encourage farmers to produce and sell, creating 
small and sustainable business operations. According to 
the World Bank Report, most Mozambican farmers live on 
fewer than three hectares of land and only about one in 
ten is able to sell surplus produce. 
 
6. Maintaining a strong SSH Program for the Mission will 
demonstrate our continued commitment to help better the 
well being of Mozambique's people. Local awareness about 
the SSH process has increased, leading to a steady rise 
in the number of excellent applications for potential 
projects. Strengthening the SSH Program is a clear way 
to show USG support for an African nation that has 
potential to be a well-rounded success story - 
economically, politically, and socially. 
 
7. The Self-Help Coordinator is Economic/Political 
Officer Loren Dent. The Assistant Coordinator is 
Economic/Commercial Assistant Elizabeth Filipe. 
La Lime