Documenting the achievements of the EESE programme in Mozambique

A case study of the pilot project “Resilient Business in Beira”

The EESE process launched in Mozambique in mid-2018 identified 8 priority conditions for creating an enabling environment for the support and development of sustainable enterprises. This led the ILO’s tripartite constituents to elaborate specific action plans on three key enabling conditions: access to finance, peace and political stability, good governance.

After the catastrophic effects and humanitarian crisis caused by the cyclone Idai in March 2019, the ILO implemented a small project - “Resilient Business in Beira” - with financial support of UNDP. The project aimed to provide some MSMEs with the support needed to restart and consolidate their economic activities, operationalizing some elements of the action plans previously elaborated. It was implemented end of 2019/ early 2020 by GAPI, a local business development and financial service provider. During a one-week training, 25 local and formal MSMEs were provided with theoretical and practical knowledge to elaborate a business continuity plan.

This report contains testimonials of how the implementation of these activities facilitated and boosted business resilience. Overall, the implementation of this project confirmed that several conditions are too restrictive to promoting sustainable business in Mozambique, with further weakening infrastructures due to Idai. Everyone highlighted that access to credit and other financial services is a major problem and the existing high interest rates are an obstacle for investment. Moreover, the lack of appropriate policies and existing legal and institutional weaknesses does not facilitate business development. Interviews also confirmed that management is too often carried out only through practical knowledge, without the preparation of business plans, without long-term strategic vision and with human resources without adequate qualification.