The formal development cooperation started early 1977. Representatives of the Government of the People’s Republic of Mozambique and the Government of Norway met in Maputo March 1977.
During the war 1976-1992 the support took on, of necessity, the distinct character of emergency aid. After the 1992 peace agreement Norway aided and supported rehabilitation work as well as measures to help the thousands of refugees to re-establish themselves in their places of origin on their return from neighbouring countries. Gradually there was a shift towards more long-term development cooperation, and more focus on institutional strengthening and capacity building, sector programmes and budget support.
The first Memorandum of Understanding was signed in 1997. Norway has the intention of gradually move away from projects to sector programmes and budget support. The existing Memorandum of Understanding is the overall framework for the development cooperation. The reduction of the number of individual projects aims at guaranteeing sufficient capacity and a high level of quality in the Norwegian involvement. Through co-financing schemes and common funds this should reduce the burden on the Mozambican administration.
The Government of Mozambique (GoM) has declared the fight against absolute poverty to be priority number one (See link to the Poverty Observatory to the right) and this has also been formulated in its PARPA (equivalent to Poverty Reduction Strategy Programme - PRSP). The PARPA aims at reducing the share of poor people in the population and constitutes the basis for the Norwegian development cooperation with Mozambique. The PARPA defines education, health, infrastructure, increased productivity on family farms, governance, and judicial reform and fiscal and macro-economic policy as the main priority areas in the effort to combat poverty. The overarching objective of Norwegian development cooperation with Mozambique is to support Mozambique's fight against poverty, as well as to promote human rights and sustainable management of natural resources.
In accordance with the Mozambican Government's prioritisations, the cooperation encompasses two sectors: fisheries and energy, in addition to general budget support. Norway also has a focus on promoting respect for human rights, governance, civil society, private sector development and environment and climate change. The identification of main sectors for cooperation implies a commitment to long-term Norwegian involvement in such sectors. In addition to participation in sector policy dialogue and technical and financial assistance, institutional assistance may be included. These three sectors and the budget support constitute around 80-85 % of the total Norwegian development aid to Mozambique (energy 30 %, fishery 8 %, governance 11 % and budget support 32 %). All Norwegian aid to Mozambique is reported to the Overseas Development Assistance to Mozambique database (ODAmoz). (See link to the right).
Cooperation in the energy sector is focused on sustainable management of the country’s hydropower and natural gas resources. It includes technical and financial assistance for the petroleum and energy directorates and ministries, and the development of a nation-wide power grid. There is an emphasis on environmental sustainability and increased economic and ecological vulnerability caused by climate change.
In the fisheries sector, Norway supports institutions responsible for managing fishery resources and working to increase food security, increase foreign currency earnings and improve living conditions for the coastal population. Assistance is also provided for a rural development programme along the coast.
There is also given special attention to cross cutting concerns such as consolidation of the peace, human rights, gender equality, good governance, climate and sustainable administration of natural resources. Special attention is given within all sectors of co-operation to contribute to reduce the burden of the effect of the HIV and AIDS pandemic. There is also an ongoing support to civil society organizations working for increased pluralism and transparency.
Together with 18 other donors, Norway contributes to a joint budget support programme. In the follow-up of this support, there is focus on the authorities’ efforts to promote poverty reduction, reform the management of public finances, and generate domestic income. With other donors, Norway is supporting an ongoing financial management reform (SISTAFE), which is expected to lead to efficiency improvements in this area.
Important Norwegian institutions, companies and organisations that are partners in development cooperation with Mozambique, are among others the Petroleum Directorate, the Directorate of Fisheries, Norwegian People’s Aid, Save the Children Norway, Statistics Norway, Christian Michelsens Institute, and the Institute of Marine Research. (See links to the right). Norwegian private sector is also represented by Norconsult, Statoil Hydro Oil and Gas, DNO, Alston Power Norway AS, Chikweti Forests of Niassa and Green Resources ASA / Tree Farms / Malonda.