Blue Investment Opportunities Portfolio, 1st Edition

REPUBLIC OF MOZAMBIQUE MINISTRY OF THE SEA, INLAND WATERS AND FISHERIES BLUE INVESTMENT OPPORTUNITIES PORTFOLIO 1st Edition The Blue Economy is defined as a “model of economic development that proposes structural changes in the economy, based on the functioning of ecosystems, in order to provide human health, environmental and economy”. Sea Policy and Strategy (POLMAR, 2017) 5Blue Investment Opportunities Portfolio PREFACe G oal 14 - Conservation and Sustainable Use of Oceans, Seas and Marine Resources for Sustainable Development - re presents one of the Sustainable Development Goals of the United Nations 2030 Agenda, which is also advocated in the 2063 Agenda, the Africa We Want, of the African Union in its Objective 06, un der the name “The ocean for accelerated economic growth”. The world environment in which we live is increasingly chan ging as a result of climate change, and it is therefore necessary for different actors in society to get involved and intervene at a glo bal level in order to preserve it. One of the initiatives to achieve this goal is the Blue Economy, and Mozambique, as a coastal country, is no exception. The Blue Economy results from the balance between economic activity and support for the capacity to restore and maintain the long-term health of marine ecosystems. Recognising the importance of the Blue Economy for Mo zambique, the Ministry of the Sea, Inland Waters and Fisheries (MIMAIP), through the Fundo de Desenvolvimento da Econo mia Azul, FP (ProAzul), decided to create the Blue Opportunities Portfolio, an instrument that brings together bankable projec ts with a high capacity for social, economic and environmental transformation, as a way of ensuring the capture of the various opportunities that exist in the country, while at the same time contributing to: 1. Achieving the commitments defined within the framework of the Sustainable Development Goals (SDGs) and the Afri can Union (AU) 2063 Agenda 2. Enabling increased private sector participation in key BE sectors, while ensuring sustainable economic develop Lídia Cardoso Minister for the Sea, Inland Water and Fisheries Blue Investment Opportunities Portfolio6 ment and creating direct and indirect jobs for coastal communities 3. Publicising transformative opportunities in the various value chains related to BE in Mozambique and increasing the representativeness of BE in the Gross Domestic Pro duct (GDP). 4. Materialising projects that are the result of collaboration and dialogue between the private sector, public sector, civil society, academia and other stakeholders linked to BE. We are counting on the participation of Academia as well as the Private Sector in order to not only ensure the social and economic viability of this initiative, but also its operationalisation, given the enormous potential that the country has with regard to BE. In this context, we are all called upon to contribute to national and international dissemination, with a view to materialising the projects in the portfolio. 7Blue Investment Opportunities Portfolio I n recent years, Mozambique has made remarkable progress in develo ping policies and legislation for the governance of the sea, as well as in establishing institutions for the development of the Blue Economy, in line with regional and international trends, within the framework of glo bal efforts to preserve the health of the oceans. The creation of the Fundo de Desenvolvimento da Economia Azul (ProAzul, FP), whose mission is to promote the sustainable development of Blue Economy activities through the allocation of resources and su pport for the management of programmes, projects and investments, re presents a notable milestone in this constant and evolving process in the sector. Considering the institutional mission of ProAzul, FP, the Blue Oppor tunities Portfolio is a strategic tool to expand the capacity and availability of funding for the implementation of projects aimed at the desired trans formation within the Blue Economy. This tool is the result of a rigorous process of identifying opportunities and detailing potential projects. This first edition has been developed on the basis of interactions with institu tions and experts from different sectors. The Portfolio is a dynamic document that is constantly being improved to include new projects, improve existing ones, and align with relevant policies and strategies. Future editions should progressively broaden its scope, making it an integrating and fundamental tool for increasing the availability of financial and technical resources needed for the country’s development. It is therefore the responsibility of ProAzul, FP to keep this document up to date, to make it available to the public and, above all, to mobilise fi nancial resources for its implementation by the different actors identified in each project. We believe that only through strategic and well-structured projects can we create a blue future for all. Chairman of the Board of Directors of ProAzul, FP Simeão Lopes BLUE OPPORTUNITIES PORFOLIO BLUE INVESTMENT OPPORTUNITIES PORTFOLIO PREFACE BLUE OPPORTUNITIES PORTFOLIO TABLE OF CONTENTS INTRODUCTION WHY INVEST IN MOCAMBIQUE’S BLUE ECONOMY ON “BLUE OPPORTUNITIES” PILLAR 1: FISHING AND AQUACULTURE P1.1 Project to Support the Development of Sustainable Aquaculture AquaBlue Project P1.2 Structuring the tilapia production and marketing chain for small and medium sized producers - Tilapia Villages Project P1.3 Aquaculture production project on the “salinised lands” of the Chókwè Irrigation P1.4 Strengthening the Artisanal Fishing and Aquaculture Value Chain, focusing on improving the Marketing and Distribution Network for Fishing Products P1.5 Integrated Project for the Sustainable Development of Artisanal Fisheries P1.6. Increasing stocks by restocking holothurian species (sea cucumber) PILLAR 2: RENEWABLE ENERGIES AND MARINE EXTRACTIVE INDUSTRY P2.1 Project to diversify livelihoods, increase food and energy security for rural communities PILLAR 3: TRANSPORT AND INFRA-ESTRUCTURE P3.1 Development of Infrastructure for the Sustainable Use of Fisheries Resources and Conservation of the Marine Environment P3.2 Mozambique’s Blue Ports PILLAR 4: NATURAL CAPITAL, ENVIRONMENT AND CIRCULAR ECONOMY P4.1 Green Infrastructure for a Resilient and Sustainable Blue Economy P4.2 Sustainable Research for a Healthy and Competitive Blue Economy P4.3 Recycling, treatment and conversion of plastics P4.4 Replacing harmful fishing gear with sustainable fishing technologies P4.5 Building the resilience of coastal communities through ecosystem adaptations TABLE OF CONTENTS 03 05 07 09 11 13 15 21 23 25 27 29 31 32 33 35 37 39 41 45 47 48 50 51 52 P4.6 Sustainable production of horticultural crops in coastal areas P4.7 Project Say no to waste! P4.8 Co-financing Project for Blue Business Development Initiatives - Matching Grants for Blue Business Development P4.9 Incubator for SMEs focused on the Circular Economy within the framework of the Sustainable Blue Economy PILLAR 5: COASTAL AND MARINE TOURISM P5.1 Sustainable Blue Tourism Programme P5.2 Platform for Integrating Tourism into the Circular Economy PILLAR 6: GOVERNANCE AND CAPACITY BUILDING P6.1 Strengthening Governance and Institutional Development P6.2 Ocean and coastal surveillance P6.3 Sustainable Economic Zone of the Blue Economy P6.4 Promoting a Window of Business Opportunities in Mozambique’s Blue Economy Mozambique’s Blue Cluster P6.5 Blue Economy Satellite Account P6.6 Aquatic Literacy P6.7 Safeguarding Maritime Heritage P6.8 Project to promote co-operativism PROAZUL’S ROLE 53 54 55 56 57 59 61 63 65 66 68 70 71 73 76 78 79 11Portfólio de Oportunidades de Investimentos Azuis INTRODUtionINTRODUtion M ozambique has natural capital and favourable conditions for sustaina ble development that takes into account the socio-economic and envi ronmental well-being of present and future generations: a subtropical climate with temperatures ranging from 18ºC to 29ºC, vast arable land, abundant water, energy and mineral resources, and a largely young po pulation. In addition to these potentials, there is its geo-strategic location, with sea ports that facilitate transport and logistics for the supply of goods and servi ces to its population, and serve as access to the coast for various inland countries that are dependent on it for the sale of their products to global markets. In order to take advantage of the country’s natural capital, a series of policy, legislative and institutional reforms have been initiated to guide the development of the Blue Economy in Mozambique, including a package of reforms to improve the business environment. To achieve this objective, the Blue Economy (BE) pro ject portfolio has been developed, which represents a set of initiatives that seek to develop and apply solutions to environmental and economic issues related to natural resources and the oceans. These projects address the challenges identi fied by the different sectors that make up the BEE through policy and strategic instruments, and seek to promote economic growth in a sustainable manner. The main objective of the portfolio is to create a coordinated and integrated approach to the development of EE, taking advantage of economic opportunities while protecting the environment. This is achieved through a participatory and multi-sectoral approach to project design, involving a range of stakeholders in cluding governments, businesses, civil society organisations and local commu nities. The Blue Economy (BE) Project Portfolio is a dynamic tool that is constantly updated, incorporating new initiatives and adapting its focus to changing needs and contexts, providing a framework for implementing solutions that contribute to a more prosperous and sustainable future for all. Portfólio de Oportunidades de Investimentos Azuis12 GPD* USD 21.24 billion (2023) GPD per capita USD 655.43 (2023 ) INFLATION 5 , 3 % ( 2023 ) IDE * US$ 1,9 bilhões (2023) Exchange rate (US$) 63 ( 2023 ) SURFACE 786 . 380 km² SEZ 572 . 000 km² COASTAL ZONE 2 . 700 kilometres POPULATION 32,419,747 (2023) 52% women and 43% young people 60% coastal areas 2.6% Annual population growth OFFICIAL LANGUAGE Portuguese ALLIANCES African Union (AU), Southern Afri can Development Community (SADC) Commonwealth. WHY INVEST IN MOZAMBIQUE’S BLUE ECONOMY 13Blue Investment Opportunities Portfolio Looking to the ocean as a sustainable source of economic and social development is an obvious path. Mozambique brings together a number of elements that make it a complete destination for the Blue Economy sector, given the immensity of the maritime space it occupies and the possibi lity of expanding it through the extension of the continental shelf. 1 One of the longest coastlines in Africa with a length of around 2,700 kilome tres; 2 An Exclusive Economic Zone (EEZ 1) of 572,000 km², accompanied by around 13,000 km² of inland waters and diverse biodiversity; 3 . Ease of logistics through an important local and international transport link via the Mozambique Channel, with three ports2 – Maputo, Beira, and Nacala, strategi cally located and linked to inland road and rail corridors; 4 Fringing coral reefs3 in the northern region account for around 35 percent of the corals in the Indian Ocean region; 5 Dense mangrove forests and seagrass meadows in the central region, with high potential for increasing the value of ecosystem services. 6 A wide range of Mozambique’s unique coastal and marine assets that represent great potential for attracting international tourism. 7 Around 2.87 million visitors in 2018, representing revenues of around 241 million dollars for the economy, where the development of marine and coastal tourism offers opportunities for future growth and employment. 8 Huge potential for aquaculture with a vast hydrographic network and marine area, but still an incipient activity practised in a dispersed way on a subsistence basis by communities with a weak presence of commercial producers.4 1 Exclusive Economic Zone 2 Ports have the potential to become centres for services and related production sectors, serving as sources of employ ment for diverse areas, including shipbuilding, logistics, storage, transport and other services. 3 Fringing reefs are simple formations close to continents or islands. 4 Em 2022, a produção aquícola foi de cerca de 5.519 toneladas, correspondentes a cerca de 1% do total da captura nacional. WHY INVEST IN MOZAMBIQUE’S BLUE ECONOMY Blue Investment Opportunities Portfolio14 9 A high potential for semi-industrial and industrial marine and inland fishing, offe ring unrivalled opportunities both up and down the value chain. 5; 10 Avanços institucionais relevantes no âmbito da Economia Azul (EA), com desta que para o fortalecimento de instituições orientadas para o sector do mar, além de reformas estruturantes no quadro legal6 de modo a favorecer investimentos no sector como é o caso da redução do imposto corporativo de 32% a 10% para o sector da aquacultura. 5 Detailed below, including fishing infrastructure, fishing ports, landings, fish markets and processing and conservation units. 6 Maritime Spatial Plan (POEM), the Legal Regime for the Use of the National Maritime Space (REJUEM), the General Re gulation on Maritime Fishing (REPMAR), among others. ABOUT “BLUE OPPORTUNITIES” 17Blue Investment Opportunities Portfolio The “Blue Opportunities” are opportunities for investment in the Blue Economy involving mul tiple actors, including the public and private sectors and other non-state actors, through the con crete projects, which make up this document. The opportunities presented below aim to: 1 An integrated and self-sustaining approach fproviding a “complete solution” by integrating the different stages and sectors involved in the value chains, in order to create environmentally and economically sustainable opportunities in a medium long term perspective. 2 Intersectoriality, by encouraging cooperation between public, private and civil so ciety actors, as well as between the different sectors that make up the BE. Inter sectorality, characterised by a holistic approach, is necessary to boost opportuni ties that contribute to achieving the Sustainable Development Goals. 3 The engagement of the private sector, with adequate incentives to increase its participation in the national economy, boosting investments and the adherence to corporate practices in line with the BE precepts, namely the guarantee of social and environmental safeguards, the inclusion of local communities in their invest ment projects, as well as social responsibility actions. 4 Economy diversification, which involves the replication and scaling up of eco nomically and financially viable initiatives that respect environment and can be adapted and implemented in different contexts and scales, contributing to the di versification of operators’ income sources and local communities.. 5 Social inclusion, aimed at ensuring the right of access to resources and the parti cipation of local communities in their management, as well as access to the oppor tunities for generating income and employment for all social groups, including vulnerable people, women and young people. 6 The preservation of the environment, which involves the inclusion in all projects of measures aimed at preserving the marine environment and inland waters, in or der to mitigate the negative impacts of human activities by promoting sustainable practices that ensure ecosystems adapt to the impacts of climate change. 7 Alignment with the policy-legal framework, which includes global and regional instruments and guidelines, with a focus on the SDGs and the guiding instruments and national legislation related to the management and conservation of the aqua tic environment and the promotion of an improved business environment. Blue Investment Opportunities Portfolio18 The blue opportunities listed in the portfolio cover multiple areas, products and services. The segmentation of the portfolio was inspired by the pillars of the Blue Economy Strategy under de velopment, which in turn is in line with the Sea Policy and its Implementation Strategy (POLMAR), from which the challenges and strategic orientation were identified in the design of the projects. I. Fishing and Aquaculture II. Renewable Energies and Marine Extractive Industry III. Transport and infrastructure IV. Natural Capital, Environment and Circular Economy V. Coastal and Marine Tourism VI. Governance and Capacity Building The list of projects is not and should not be static and is subject to continuous improvement, and their implementation can and, in many cases, should be phased. In this sense, the indicative investment will also tend to be applied in accordance with the implementation phases of the pro jects, allowing for the support of several partners. With each update, a new version of the docu ment will be published by ProAzul, FP. 19Blue Investment Opportunities Portfolio QUADRO SUMÁRIO DO PORTFÓLIO P I L A R E S PROJECTOS PRIORITÁRIOS IDENTIFICADOS INVESTIMENTO USD, 10^3 I. Fishing and Aquaculture P1.1 Support Programme for the Development of Sustainable Aquaculture Aquablue 65.000 P1.2 Structuring the tilapia production and marketing chain for small and medium-sized producers - Tilapia Villages 50.000 P1.3 Aquaculture production project on the "salinised land" of the Chókwè Irrigation Scheme 40.000 P1.4 Strengthening the Marketing and Distribution Network for Fisheries Products 30.000 P1.5 Integrated Programme for the Sustainable Development of Artisanal Fisheries 55.000 P1.6. Increase stocks by restocking holothurian species (sea cucumber) 260 II. Renewable energies and the marine extractive industry P2.1 Project to diversify livelihoods, increase food and energy security for rural communities 80.000 III. Transport and infrastructure P3.1 Infrastructures for the Sustainable Use of Fisheries Resources and Conservation of the Marine Environment 150.000 P3.2 Mozambique's Blue Ports 151.000 IV. Natural Capital, the Environment and the Circular Economy P4.1 Green Infrastructure for a Resilient and Sustainable Blue Economy 20.000 P4.2 Sustainable Scientific Research for a Healthy and Competitive Blue Economy 40.000 P4.3 Recycling, treatment and conversion of plastics 30.000 P4.4 Programme to replace harmful fishing gear with sustainable fishing technologies 30.000 P4.5 Building the resilience of coastal communities through ecosystem adaptations 50.000 P4.6 Sustainable production of horticultural crops in coastal areas 700 P4.7 Project Say no to waste! 150 P4.8 Co-financing Blue Business Development Initiatives - Matching Grants for Blue Business Development 20.000 P4.9 Incubator for SMEs focused on the Circular Economy within the framework of the Sustainable Blue Economy 3.000 V. Coastal and Marine Tourism P5.1 Sustainable Blue Tourism Programme 20.000 P5.2 Platform for Integrating Tourism into the Circular Economy 5.000 VI. Governance and Capacity Building P6.1 Strengthening Institutional Capacity and Human Capital for the Development of the Blue Economy 40.000 P6.2 Ocean and coastal surveillance 20.000 P6.3 Sustainable Economic Zone of the Blue Economy 2.000 P6.4 Promoting a Window of Business Opportunities in Mozambique's Blue Economy - Mozambique's Blue Cluster 2.000 P6.5 Blue Economy Satellite Account 1.000 P6.6 Aquatic Literacy 1.000 P6.7 Safeguarding Maritime Heritage 605 P6. 8 Cooperative Promotion Project 1.000 Total ~ 900.000 PILLAR I : FISHING AND AQUACULTURE Approach areas l Fishing l Aquaculture l Extraction / cultivation of living organisms for therapeutic, aesthetic, processing and chemical purposes, among others (still little explored within the EA framework) Related key challenges l Lack of production capacity in the sector to supply the domestic and foreign markets; l Weak network for processing and adding value to fish; l Poor infrastructure network; l The need to improve fisheries management and ecosystem con-servation; l Low diversification of fishing economic activities, including demersal and ornamental species that are little exploited, as well as the development of products outside the food industry; l Weak marketing network for health products, Political and Strategic Alignment l POLMPOLMAR / PNDT/ POEM l Investment Plan for Infrastructure to Support Fishing and Aquaculture l Aquaculture Development Strategy PQG/CFMP 23Blue Investment Opportunities Portfolio Ensure the sustainability of aquaculture through commercial-scale production, taking into account environmental safeguards and com munity involvement. The project consists of developing the aquaculture value chain by crea ting favourable conditions for mobilising the private sector, both inter nal and external, to develop the aquaculture value chain in the produc tion of equipment, quality feed and fry and aquaculture production on an industrial scale, on the one hand, and on the other to support small and medium-sized producers to develop commercial aquaculture on the mainland (tilapia) and in the sea (shrimp, mangrove and blue cra bs, oysters, mussels, corvina, seagrass, among others), aggregating their production to facilitate access to markets. Engaging the private sector in the development of industrial aquacul ture combined with support for small and medium-sized producers, through the transfer of knowledge and the development of the aqua culture value chain, will contribute to the sustainability of aquaculture activity and to food and nutritional security, job creation, balancing the trade balance and reducing pressure on extractive fishing. The aim is for the industrial sector’s scale production to create the con ditions for affordable feed and quality fry for small and medium-sized producers, through local production of the raw materials used in feed production. The project also includes the processing, commercialisation and marketing of aquaculture products, as well as the establishment of an institutional framework and conditions that guarantee biosafety and hygiene standards to ensure sustainable aquaculture. The project’s components are as follows: 1) Analysing the issues blocking private sector investment in aquaculture and designing and implementing a roadmap to address the issues; 2) Support for the development of the aquaculture value chain: 2.1) Establishment of production units for aquaculture equip ment (cages, nets, etc.), feed and fry / larvae / seeds, through support for the private sector 2.2) Improving the capacity of small and medium-sized aquacul ture producers through the development of production units (tanks, cages, mariculture) and training; General objective Indicative scope P1.1 Project to support the development of sustainable aquaculture - AquaBlue Project Blue Investment Opportunities Portfolio24 2.3) Support for the development of the commercialisation and marketing chain for aquaculture products 3) Strengthening the legal and institutional framework for planning aquaculture activity, with a focus on licensing, data collection and dissemination, bio-security and hygiene/health/quality control.. ▪ Niassa, Tete, Zambézia, Manica, Sofala, Inhambane, Gaza and Maputo Aquaculture in tanks and cages; ▪ Cabo Delgado, Nampula, Zambézia, Sofala, Inhambane, Gaza and Ma puto - Marine Aquaculture. IDEPA, IP; ADNAP, IP Private Sector; Public Institutions: ProAzul,FP e INIP, IP Private sector and communities USD 65.000.000 | Possibility of phased investment Implementing Partners Geographical coverage Responsible Recipients Indicative investment 25Blue Investment Opportunities Portfolio General objective Increasing aquaculture production and productivity through the transition from subsistence to commercial aquaculture. Indicative scope O projecto The project consists of the commercial-scale production of tilapia through pond and cage production in sites mapped out as potential for aquaculture production. Production in ponds is carried out in an aquapark model, where feed and fry production units are concentrated, as well as fish processing and conservation units, which will be dynamised by the private sector. The location of the “Tilapia Villages”, in addition to the ecological conditions, will take into account their proximity to other industrial-scale aquaculture projects within the AquaBlue umbrella project, in order to benefit from existing or created facilities regarding production and access to markets. The “Tilapia Villages” will be a public-private partnership, where on land, a series of tanks, between 100 and 200, will be concessioned to individual operators, each with between 20 and 30, who will employ local labour. The operators will benefit from an exchange of experience, easy access to inputs and technical assistance, as they will be concentrated in a specific area. The “Tilapia Villages” concept is also being applied to cage aquaculture, where the country’s existing freshwater ponds and reservoirs with potential for aquaculture will be utilised. The project will also be implemented within the framework of the AquaBlue “Umbrela” project and the Blue Economy Sustainable Economic Zone (detailed below), which will create the conditions for attracting private sector investment, following the same intervention logic. The following are components of the project: 1) Mapping of areas, land and lakes with potential for establishing the “Tilapia Villages” project concept and zoning of lakes and reservoirs for the development of cage aquaculture, taking into account other uses 2) Public investment in developing the essential conditions for mobilising private investment - legal framework, access to land, water, quality energy and access roads 3) Construction of feed and fingerling production units through the private sector and/or public-private partnerships 4) Opening of ponds, construction of cages and processing units for tilapia production, through the private sector 5) Establishment of a One Stop Shop to assist the private sector in importing inputs and exporting products. P1.2 Structuring the tilapia production and marketing chain for small and medium-sized producers - Tilapia Villages Project Blue Investment Opportunities Portfolio26 Geographical coverage ▪ Niassa, Tete, Zambézia, Manica, Sofala, Inhambane, Gaza and Maputo Aquaculture in tanks and cages ▪ Cabo Delgado, Nampula, Zambézia, Sofala, Inhambane, Gaza and Maputo Marine Aquaculture ▪ Chókwè Irrigation Scheme Responsible IDEPA, IP Implementing Partners Gaza, Inhambane, Manica, Tete and Zambézia. Recipients Private sector and communities Indicative investment USD 50,000,000 | Possibility of phased investment 27Blue Investment Opportunities Portfolio General objective Diversifying the rural economy by using idle land for aquaculture production on an industrial scale, contributing to increased production, food security and job creation. Indicative scope The project consists of using around 4,679 hectares of salinised land, unsuitable for agriculture, located on the Chokwé irrigated land in Gaza province, to produce tilapia fish on an industrial scale in tanks. The industrial production unit includes tanks, feed production units and fish processing rooms. The existence of the Aquaculture Research Centre (CEPAQ) and Hidráulica de Chokwé E.P. (HICEP), which manages the Chokwé irrigation system, is an advantage for setting up aquaculture production companies. The project will also be implemented within the framework of the “Umbrela” AquaBlue and Blue Economy Sustainable Economic Zone projects, which will create the conditions for attracting the private sector to invest in imports, initially, and progressively in the local production of the inputs and technologies needed to run the quality feed and fry production units at competitive prices, contributing to import substitution and balance of payments equilibrium. The reservation of land and the contract with HICEP for the availability of water supply channels are an essential condition for mobilising the private sector to invest. The industrial production units are surrounded by aquaparks, where local communities are organised into small and medium-sized cooperatives, which will benefit from assistance from the private sector and public institutions to ensure the training and availability of qualified local labour. These units will generate income for people who will not be employed by the companies and will contribute to the involvement of communities in protecting the infrastructure from possible acts of vandalisation. The following are components of the project: (1) Public investment in developing the essential conditions for mobilising private investment - land, water, quality energy and access roads; (2) Construction of feed and fry production units through the private sector and/or public-private partnerships; (3) Opening of tanks and construction of processing units for tilapia production, through the private sector; (4) Establishment of a One Stop Shop to assist the private sector in importing inputs and exporting products. Geographical coverage Chókwè - Gaza P1.3 Aquaculture production project on the “salinised land” of the Regadio do Chókwè Blue Investment Opportunities Portfolio28 Responsible IDEPA, IP Implementing Partners Private Sector; Public Institutions: ProAzul, FP, INIP, IP; ADNAP, IP; Customs, MEF, MIC, MADER Recipients Private sector and communities Indicative investment USD 40.000.000 | Possibility of phased investment 29Blue Investment Opportunities Portfolio General objective Improve the average income of artisanal fishermen and small-scale aquaculturists and reduce post-catch losses through efficient fish processing, marketing and distribution. Indicative scope The project consists of structuring the marketing and distribution system for artisanal fishing and aquaculture products by involving the private sector and local cooperatives in the management of fish conservation and processing infrastructures and the purchase of fish at unloading sites / landing centres and aquaculture production units, helping to reduce post catch losses and increase the income of fishermen and fish traders. Taking into account the marketing systems and players at community level, the project will support fish traders to organise themselves into cooperatives and interest entrepreneurs in the fisheries sector to sign contracts to buy fishery products from artisanal fishermen and aquaculturists, in order to guarantee distribution to the national and international markets, while complying with hygiene and health rules. In addition to supplying the national market, this initiative will help to place artisanal fishing products with a high commercial value (e.g. shrimp, crab, tuna, etc.) on the international market. The project will be implemented in phases, taking into account the existing conditions and infrastructures in the different communities in Portugal, as well as the infrastructures to be developed. The components of the project are: 1) Rehabilitation and equipping of existing fishing and aquaculture support infrastructures and acquisition of means for preserving and distributing fish, through public-private partnerships; 2) Support for fish traders in setting up fish marketing and processing cooperatives, including training on adding value to fish products and by-products within the framework of the circular economy; 3) Design and implementation of the fish marketing model, including the preparation of contracts and the development of an app to provide information on fish prices and connect fishermen and fish traders. Geographical coverage It is divided into three phases: ■ Phase 1: Maputo, Gaza and Inhambane ■ Phase 2: Manica, Tete, Niassa ■ Phase 3: Sofala, Zambézia, Nampula and Cabo Delgado P1.4 Strengthening the Artisanal Fishing and Aquaculture Value Chain, focusing on improving the Marketing and Distribution Network for Fisheries Products Blue Investment Opportunities Portfolio30 Responsible IDEPA, IP Implementing Partners Private Sector; Public Institutions: ProAzul, INIP; NGOs Recipients Artisanal fishermen, aquaculturists, coastal communities and the private sector Indicative investment USD 30.000.000 | Possibilidade de investimento faseado 31Blue Investment Opportunities Portfolio General objective Contribute to improving the performance of the artisanal fishing value chain by strengthening the efficiency of flows and providing increased income for those involved, elevating it to a more commercial fishery, contributing to increasing the availability of better quality fish supplied to the domestic market and improving the food and nutritional security of populations. Indicative scope The project consists of developing the artisanal fishing value chain through integrated intervention by the different actors and segments of the fishing value chain. The strategic orientation of the project’s interventions is aimed at helping to increase income along the value chain, focusing on: a) organising artisanal fishing activity (landing, licensing, inspection, evaluation of potential, management measures and production statistics); b) Strengthening the fishing extension network and training extension workers, in conjunction with the agricultural sector; c) reduction of post-catch losses (fish handling and conservation), d) access to markets (processing and marketing under appropriate conditions, improving transport and access routes) and value-added products (health inspection and certification of fish quality); e) increasing production based on selective fishing in the open sea and inland waters (modern and selective fishing technology), making artisanal fishing more productive and sustainable in the context of adaptation and resilience to climate change and the blue economy. As part of the recent approaches adopted by the fisheries sector with a view to ensuring the sustainable development of artisanal fishing, the project will support the realisation of the “Citizen Fisherman” principle, which aims to promote greater integration of those involved in the value chain into the formal economic system, which could help to reduce illegal, unreported and unregulated fishing. The project also includes the processing, commercialisation and marketing of artisanal fishing products, as well as interventions in infrastructures to support fishing in the value chain, and the establishment of an institutional framework and conditions that guarantee biosafety and hygiene standards to ensure sustainable artisanal fishing. The project’s components are as follows: 1. Development of infrastructure and equipment to support fishing 2. Fisheries planning and management 3. Strengthening the fisheries extension network 4. Development of the integrated value chain 5 Strengthening institutional capacity and project management Geographical coverage • Cabo Delgado, Nampula, Zambézia, Sofala, Inhambane, Gaza and Maputo Coastal area • Niassa, Zambézia, Tete, Manica, Sofala, Inhambane, Gaza and Maputo Inland Waters Responsible IDEPA, IP and ADNAP, IP Implementing Partners Private Sector; Public Institutions: ProAzul, FP; INIP, FP; InOM; INFRAPESCA, IP; INAMAR, IP; Fisheries School Recipients Private sector and communities Indicative investment USD 55,000,000 | Possibility of phased investment P1.5 Integrated Project for the Sustainable Development of Artisanal Fisheries Blue Investment Opportunities Portfolio32 P1.6. Increase stocks by restocking holothurian species (sea cucumber) General objective Increase permanent stocks of holothurian (sea cucumber) species in marine reserves through breeding initiatives.. Indicative scope Holothurians are important components of marine ecosystems, representing a significant resource for coastal livelihoods. Globally, holothurian aquaculture has increased from around 1 per cent in 2002 to 25 per cent in 2011. In neighbouring Tanzania, there are around 20 species of holothurias traded with high commercial value. The demand for holothurias has resulted in overfishing of the exploited species, so dedicated efforts are needed to restore fish stocks and manage them sustainably. This project will rebuild wild stocks of holothurians through the production of juvenile holothurians in aquaculture and subsequent restocking in the wild, applying technologies that are already available locally. These actions will be supported by initiatives to raise awareness and train communities in holothurian management and aquaculture. 1) Encouraging the production of holothurians in marine protected areas in order to guarantee the existence of abundant permanent stocks for sustainable capture; 2) Training communities to adopt techniques for growing and marketing holothurias to generate income and their livelihoods. 3) Development of the holuthurian value chain, including captive production, to ensure the sustainable exploitation of the resource. 4) Generating and sharing knowledge on the captive production and management of holothurias in their natural environment. Capacity building among researchers, professionals, instructors, experts and providing information to stakeholders constitutes one of the essential elements of this initiative. Having an educated community that will be able to venture into holothurian culture as a potential alternative source of income can result in low pressure on the wild stock, thus allowing the rejuvenation of sea cucumbers in the natural environment. Geographical coverage  Inhambane: Vilankulo e Inhassoro  Nampula: Moma e Angoche Responsible Mozambique Oceanographic Institute (InOM) Implementing Partners Private Sector; Public Institutions: ProAzul,FP and IDEPA,IP Recipients Private sector and communities Indicative investment USD 260,000 PILLAR 2 : RENEWABLE ENERGIES AND EXTRACTIVE MARINE INDUSTRY Áreas de abordagem  Minerals  Energy (incl. hydro, wind, solar) Related key challenges  Energy transition  Innovation and financing for renewable energy generation  Availability of water throughout the year for the uses of the different sectors  Control of saline intrusion with a negative impact on agriculture and livestock farming  Mitigating the impact of floods and droughts, which occur cyclically in the country Link to the SDGs 35Blue Investment Opportunities Portfolio General objective Improving river flow management to maintain the balance of ecosystem services, energy production and strengthening community livelihoods, helping to mitigate the impact of floods and droughts. Indicative scope The project consists of the development and management of infrastructure (dams, dykes and canals) to control the flow of water in river basins relevant to ecosystem services, helping to improve the livelihoods of communities and strengthening resilience to the impacts of extreme natural phenomena the products expected from the implementation of the project include the creation of irrigation systems, sources for watering livestock, small power stations, the creation of aquaparks, hydrological restoration of mangrove forests, among others. In addition, the project includes the development of green infrastructure and agroforestry, involving the family sector, to maintain the integrity of the rivers and prevent erosion. With the green infrastructure, the project will support communities in accessing carbon credits. The components of the project are as follows: 1) Carrying out relevant studies to adopt measures aimed at maintaining or restoring the ecosystem services of hydrological basins and organising the activities that take place along rivers, lakes and reservoirs to contribute to sustainable development while mitigating environmental impacts; 2) Construction of infrastructure (dams, dykes, excavated reservoirs and canals) for the sustainable management of hydrological basins and the generation of hydroelectric power; 3) Development of green infrastructure and support for communities in accessing innovative sources of finance - Carbon Credits, Blue Bonds; 4) Development of income-generating initiatives using infrastructure and ecosystem services, with the involvement of the private sector. Geographical coverage Incomati, Púnguè, Messalo catchment area Responsible Regional Water Administration (ARA) and MIREME Implementing Partners Public Institutions: INGD, IP; INAM, IP; ANAC, IP; DINAB-MTA; Private Sector, NGOs, Academia, Development Partners Recipients Rural communities and SMEs - Agribusiness and renewable energies Indicative investment USD 80.000.000 | Possibility of phased investment P2.1 Project to diversify livelihoods, increase food and energy security for rural communities Approach areas  Maritime transport  Port infrastructure and services Related key challenges  Modernisation of port infrastructures and means of maritime transport for sustainable development;  Limited access to physical infrastructure in rural areas, especially for artisanal fishing and aquaculture (landing, storage, marketing, access roads, energy, sanitation, water) High levels of post harvest losses due to the lack of appropriate conditions for landing, storage and processing) Link to the SDGs PILLAR 3 : TRANSPORT AND INFRASTRUCTURE 39Blue Investment Opportunities Portfolio General objective Developing a network of fishing support infrastructures and contributing to the sustainable use of fishing resources by expanding the network of community-initiated marine conservation areas. Indicative scope The project focuses on the implementation of physical infrastructure to support artisanal/coastal and semi-industrial fishing, the extension of marine protection areas and community management fishing areas with a view to increasing the sustainable production of fisheries products. Due to the complementary nature of the different infrastructures planned, the selection of the geographical location must favour easy access to the different essential services (one-stop-shop), both for increasing fishing productivity (landing, freezing and distribution) and for the public services necessary for sustainable practice (health inspections, surveillance, maritime authority and others). At the same time, as part of the scope of this intervention, Community Fisheries Management Areas and Community Marine Conservation Areas will also be established, in order to contribute to the conservation of Key Biodiversity Areas (KBAs7) and the expansion of marine conservation areas. In the vicinity of these infrastructures, particular attention will be paid to creating the conditions for the establishment of input shops, auctions, storage rooms, markets and other facilities that boost the local economy and encourage private sector participation in their operation. In addition, this geographical layout helps to improve maritime safety at landing points, ensures greater efficiency in Fisheries Monitoring, Control and Surveillance (MCS) and the hygiene and health control of fishery products. The following facilities are planned for this project: Coastal Port, Coastal Fishing Port, Local Fishing Port, Landing Centres. These facilities include in their respective projects the support infrastructures needed for them to function properly and help increase productivity (energy, access routes, ice machines, laboratories, floating pontoons and others - some of which are operated by the private sector). These are components of the project: 1) Construction, extension and rehabilitation of resilient “blue” infrastructure to support fishing; 2) Support for the establishment of Community Management Fishing Areas and Community Conservation Areas, the consolidation of the participatory fisheries management system and the development of the fishing gear marking system (gear sealing) and a specific fishing unit insurance project; 3) Operationalisation of the management mechanisms for Community Management Fishing Areas and Community Conservation Areas, including the registration, cadastre and electronic licensing of artisanal fishermen, implementation of management plans for artisanal fisheries and support for the operation of local co-management systems. 7 Key Biodiversity Areas. P3.1 Development of Infrastructures for the Sustainable Use of Fisheries Resour ces and Conservation of the Marine Environment Blue Investment Opportunities Portfolio40 Geographical coverage National Priority Infrastructures:  Northern Zone: Cabo Delgado: Palma Coastal Port, Quirimba Island and Ruela; Nampula: Memba  Central Zone: Tete: Chicoa, Saladza  South Zone: Inhaca Responsible INFRAPESCA, IP Implementing Partners Public Institutions: ADNAP, IP, ANAC, INAMAR, IP, InOM; INIP; Private Sector, NGOs (WCS, WWF) Recipients Private sector (SMEs, input suppliers, processors, fish traders, shipbuilders, tourism, crew members, small-scale fishing operators) and coastal and inland water communities. Indicative investment USD 150.000.000 | Possibility of phased investment 41Blue Investment Opportunities Portfolio General objective Increase the competitiveness and economic contribution of Mozambique’s ports by adopting an integrated, participatory and sustainable long-term development model. Indicative scope The “Blue Ports Initiative” of the Food and Agriculture Organisation of the United Nations (FAO)8 has helped to map and disseminate good practices in sustainable port management, representing an important framework and relevant source of consultation for structuring projects of this nature. Although it is an emerging concept, there are positive experiences of ports that favour preserving the environment, increasing social benefits and economic growth in an integrated way. The essence of “Blue Ports” is an approach that favours, among other characteristics, (i) environmentally sustainable solutions (ii) the involvement of multiple sectors and players (iii) the intensive use of technologies to increase the efficiency of port operations (iv) economic development with the participation of the private sector and the community (v) orderly growth with a long-term vision. It is against this backdrop that the project seeks to gradually develop and apply the blue harbour model to the country’s port infrastructures. The project aims to make port operations more efficient, contributing to the socio-economic development of coastal communities and the country by strengthening the fisheries value chain, respecting aspects of environmental sustainability, the principles of gender equality and encouraging respect for maritime labour standards and good practices. With regard to fishing harbours, the initiative aims to improve waste management, including, among other things, plastics, oils, black water treatment and ballast water. It also seeks to develop ecological initiatives that contribute to improving the coastal and marine environment, such as the cultivation of mangroves, algae, filter feeders (e.g. bivalves) and other organisms that contribute to the renewal of ecosystems. The rehabilitation and modernisation of infrastructures will take into account the reduction/elimination of environmentally polluting elements, contributing to the energy transition, replacing fossil energy sources with clean energies wherever possible, and the digitalisation of the port management and operations system, which will also contribute to improving statistical information and therefore the management of fishing resources. 8 The blue ports as a tool to strengthen blue transformation in coastal areas (2022) P3.2 Mozambique’s Blue Ports Blue Investment Opportunities Portfolio42 Fleet modernisation is one of the sector’s biggest challenges today, and its implementation will contribute to greater profitability for fishing companies and a reduction in the environmental impact of their operations. Modernisation will consider standardising the fleet to suit the management system of the respective fishery, as well as encouraging the use of more sustainable energy sources. The modernisation of vessels will also help to improve the working conditions of the crew and include gender sensitivity. The Blue Fishing Ports initiative also addresses cross-cutting issues such as governance aspects, which involve the participation of the private sector, organisations and NGOs, local governments, strategic planning and the integration of ports into the Marine Spatial Planning Plan (POEM), the National Territorial Development Plan (PNDT) and local plans for the areas where the fishing ports are located. Within this framework, fishing ports can provide other services to meet the needs of the community, as long as they are properly planned. These are components of the project: 1) Development of the conceptual framework and technical and institutional capacity for the implementation of the “Blue Ports” initiative in Mozambique and a roadmap for its phased implementation 2) Rehabilitation and modernisation of fishing support infrastructures and equipment: a. Efficiency and digitisation, including the implementation of the electronic logbook; b. Diversification of services and integration into the local and national economy c. Energy transition; d. Reduction of pollutants harmful to human health. 3) Environmental management and development of green infrastructures, including: a. Waste management (Etares and waste management system in harbours and fishing vessels) b. Encouraging shipowners to prevent and collect marine litter (abandoned nets, fishing gear, etc);; c. Encouraging the recycling industry based on marine litter and other waste 4) Participatory governance of fishing ports, including:: a. Integration into POEM, PNDT and Local Development Plans;; b. Evaluation and revision of PEDPA;; c. Support for a participatory study to define the technical specifications of the standard vessel, including the dimensions of the standard master cable; d. Involvement of the private sector (modernisation plans, diversification, environmental management, labour standards, gender); e. Involvement of NGOs and Academia in drawing up development and planning plans and in Environmental Auditing. Indicative scope 43Blue Investment Opportunities Portfolio  Development of the conceptual framework, legislation and institutional capacity: National  • “Pilot” ports eligible to apply the concept: Port of Maputo, Beira and, in a second phase, the port of Angoche INFRAPESCA, IP Instituições Públicas: ADNAP, IP; INAMAR, IP; InOM; INIP, IP; Sector Privado,ONGs Sector Privado (PMEs, Armadores de Pesca Industrial, fornecedores de insumos, processadores, comerciantes de pescado, construtores navais, turismo, tripulantes, operadores de Pesca de Pequena Escala) e Comunidades Costeiras.  For the development of the conceptual framework and institutional capacity USD 1.000.000  To apply the concept in the pilot ports USD 150.000.000 | Possibility of phased investment. Each component of Porto Azul can be financed separately. Geographical coverage Responsible Implementing Partners Recipients Indicative investment Approach areas  Carbon sequestration  Coastal Protection  Waste management for land and sea-based industries / Circular economy  Marine conservation areas Related key challenges  Excessive exploitation of resources due to lack of income alternatives  Loss of natural habitat  Marine pollution and coastal erosion, which are aggravated by the impacts of climate change  Expansion and management of Marine Conservation Areas - with a focus on community areas Link to the SDGs PILLAR 4 : NATURAL CAPITAL, CIRCULAR ENVIRONMENT AND ECONOMY 47Blue Investment Opportunities Portfolio Objectivo geral Implement mechanisms for the sustainable management and utilisation of critical ecosystems and habitats to ensure the mitigation of climate change impacts and the social and economic resilience of coastal communities. Indicative scope Financing the protection and restoration of critical habitats and their ecosystem services is an opportunity for local management and new avenues for leveraging private investment. This type of “green infrastructure” ensures conditions for the emergence of emerging industries such as liquid fertilisers, seaweed cultivation, the pharmaceutical and food industries. Not only that, it also represents a great advantage for the development of nature-based tourism activities - with numerous opportunities for public and private investment. In view of this, the project consists of funding initiatives aimed at developing green infrastructure for the protection of the coastal and marine environment, including Conservation Areas, namely: protection and restoration of mangroves, seagrass, dune forests and sand dunes, coral reefs and their ecosystem services. In addition, the project aims to strengthen the resilience of coastal and marine ecosystems, as well as their communities, by funding initiatives to conserve and restore critical coastal and marine habitats and diversify community livelihoods. These are components of the project: 1) Assessment of the health of critical habitats and the value of ecosystem services; 2) Actions to ensure natural recovery and maintenance of degraded critical habitats, including restoration initiatives; 3) Identification of economic opportunities for the inclusive development of the private sector in activities associated with the conservation and sustainable exploitation of green infrastructure (mangroves, coral reefs, dunes and other green infrastructure). Geographical coverage South Zone: Gaza and Inhambane Centre Zone: Banco de Sofala Northern Zone: Cabo Delgado and Nampula Responsible Mozambique Oceanographic Institute (InOM) Implementing partners Public Institutions: INAMAR, IP, ANAC, IP ADNAP, IP DINAB-MTA, INIP, IP; Private sector, NGOs (WCS, WWF), academia, development partners Recipients Coastal communities, NGOs, Academia and the private sector Indicative investment USD 20.000.000 | Possibility of phased investment P4.1 Green Infrastructure for a Resilient and Sustainable Blue Economy Blue Investment Opportunities Portfolio48 General objective Ensuring the availability of scientific information for the sustainable exploitation of marine resources and the development of Blue Economy economic activities Indicative scope Mozambique has made significant progress in the scientific component of EE. Relevant institutional developments and the existence of institutions focused on the subject, such as the Mozambique Oceanographic Institute (InOM), the Marine Environment Research Centre (CEPAM), universities with specific lines of research focused on the oceans and related areas, demonstrate constant progress in scientific development in the Blue Economy sectors. Despite the progress made, given the relevance of BE in the global context, it is vital for its development and sustainable exploitation to intensify knowledge about fishing resources on the high seas, the impact of marine whirlpools on resources, monitoring the warming of sea waters, hydrographic studies to improve navigation and oceanography, increasing productivity in the cultivation of living resources, among others. Because of this, the project consists of strengthening lines of research in the Blue Economy, with a particular focus on increasing the availability of information and knowledge about the sea and living resources necessary for the development of economic activities and conservation initiatives within the framework of the Blue Economy, by carrying out specific studies that are the key components of this opportunity, in particular: 1) Developing studies on fishing resources on the high seas (beyond 12 nautical miles) - including, for example: estimating the biomass of species, determining the amount of marine litter from abandoned “ghost fishing” gear, determining the amount of microplastics in species, among others. 2) Research into the impact of marine whirlpool events on the distribution and abundance of fishery resources 3) Creation of a mechanism for monitoring sea warming, by means of regional monitoring stations at sea (and other instruments) 4) Carrying out topo-hydrographic, hydrographic and cartographic analyses to improve marine scientific research capacity and navigability 5) Create and strengthen existing lines of aquaculture research in inland and marine waters (quality of inputs, cultivation techniques and others needed to increase productivity and sustainability) Due to its scope and transversal nature, this project also contributes to several others in the portfolio. Geographical coverage National Responsible Mozambique Oceanographic Institute (InOM) Implementing partners Public Institutions: ANAC, IP, ADNAP, IP, DINAB-MTA, INIP, IP; Private Sector, NGOs (WCS, WWF, BIOFUND), academia, Development Partners P4.2 Sustainable Research for a Healthy and Competitive Blue Economy 49Blue Investment Opportunities Portfolio Recipients Coastal communities, NGOs, Academia and the private sector Indicative investment USD 40.000.000 | Possibility of phased investment Blue Investment Opportunities Portfolio50 P4.3 Recycling, treatment and conversion of plastics General objective Developing the plastic recycling, treatment and conversion market, helping to reduce the incorrect disposal of plastic waste and packaging in marine, river and lake waters Indicative scope The project aims to reintroduce plastic into the production chain so that it generates value and is reused, reducing waste production and incorrect disposal, increasing the preservation of natural resources and improving people’s quality of life. The project’s lines of action are:: 1) Integrating informal waste pickers as agents within the formal recycling system, including actions to value and dignify their work, training in health and the environment, and collaboration with associations and community-based organisations that currently work with informal waste pickers. 2) Create incentives and financial instruments (credits, deductions, tax exemptions, preferential public purchases, etc.) aimed at increasing the profitability of the recycling industry, including the promotion of technological innovations that improve its efficiency. 3) Develop local markets for conversion options for non-recyclable plastic when all possibilities for reuse and mechanical recycling have been exhausted. 4) Financing investments in the production of packaging and packaging made from biodegradable materials that are alternatives to plastics. Geographical coverage National, with pilot projects in up to 10 municipalities Responsible Mozambique Oceanographic Institute (InOM) Implementing partners MTA, MADER, MIC, local authorities, ANAMM Recipients Manufacturers and producers, recycling companies, associations and community based organisations Indicative investment USD 30,000,000 | Possibility of phased investment 51Blue Investment Opportunities Portfolio General objective To support artisanal fishing operators in improving fishing means and technologies to ensure sustainable fishing through selective fishing techniques, contributing to the sustainability of fish stocks. Indicative scope The project aims to eliminate harmful fishing gear and provide selective fishing gear, with a focus on eradicating the use of mosquito nets (including chicocotas) and replacing beach trawls (REPMAR provides for the discontinuation of this fishing gear), providing alternative and sustainable fisheries. The project consists of research and training on sustainable fishing technologies and the granting of funding (co-financed by the Recipients) to artisanal fishing operators for the acquisition of engines, improved vessels, fishing gear and technologies aimed at exploiting under-exploited resources, including tuna fishing and/or using selective fishing methods that guarantee the sustainable use of fishing resources. The project includes the promotion of the use of accompanying fauna reduction devices and the implementation of guidelines in the event of accidental catches of endemic species. The project is intended to support the private sector in the ecological certification of fisheries products, helping to diversify markets and increase income. The following are components of the project: Pretende-se que o projecto apoie ao sector privado na certificação ecológica dos produtos de pesca, contribuindo para a diversificação dos mercados e incremento dos rendimentos. Constituem componentes do projecto os seguintes: 1) Research and training on sustainable fishing technologies; 2) Granting funding to artisanal fishing operators for the use of selective fishing gear and techniques, with a focus on replacing beach trawls and implementing fish aggregating devices to promote tuna fishing; 3) Training for Recipients in business and financial management and sustainable fishing technologies, including insurance services for fishing vessels; 4) Support for project Recipients in improving the fisheries value chain, ecological certification of fisheries products and facilitating access to various markets. 5) Studies on the impact of the withdrawal of trawl gear on land; and 6) Design and implementation of a fishing gear marking system Geographical coverage Coastal and inland water provinces relevant to artisanal fishing Responsible National Fisheries Administration, IP (ADNAP, IP) Implementing partners Public institutions: IDEPA, IP ProAzul, FP INIP, IP; private sector, universities, NGOs Recipients Artisanal fishermen and the private sector Indicative investment USD 30,000,000 | Possibility of phased investment P4.4 Replacing harmful fishing gear with sustainable fishing technologies Blue Investment Opportunities Portfolio52 General objective Mitigate climate impacts on communities related to droughts, floods, cyclones and salinisation of water and soils associated with saline intrusion caused by climate change in the estuaries of the Limpopo, Zambezi and Bons Sinais rivers. Escopo indicativo Mozambique is among the countries most vulnerable to climate change. The severe and increasing impacts of climate change on weather patterns and natural disasters are resulting in direct human casualties, as well as the degradation of people’s livelihoods and the ecosystems that sustain them. The impacts of climate change on the three estuaries are already affecting more than 300,000 people and, if mitigation measures are not adopted in good time, the number of people affected will probably rise to more than 1.5 million by 2100. To achieve the overall objective, integrated ecosystem-based approaches will be adopted, including investments in nature-based solutions for adaptation, improved early warning systems to support communities in disaster preparedness, rainwater harvesting and the promotion of livelihoods that are resilient to climate change and tolerant of water and soil salinisation. The project aims to implement the following mitigation solutions: 1) In the flood and cyclone damage protection component: nature-based solutions will be applied to increase flood water infiltration rates and recharge aquifers and coastal protection through investments in protective embankments (dikes), rehabilitation and conservation of mangroves; and disaster management through the installation/reinforcement of local early warning systems (for climate impacts that cannot be fully mitigated or avoided). This includes times of strong cyclones of category 3 to 5, which will become more frequent in the future due to climate change. 2) In the adaptation component to livelihoods resilient to drought and salinisation of water and soil: to guarantee access to drinking water in places affected by saline intrusion, the project will promote rainwater harvesting systems and/or the construction of boreholes; and to guarantee agricultural production in places affected by droughts, floods and soil salinisation, the project will promote salinisation-resilient agriculture and diversification of livelihoods. Geographical coverage ▪ Gaza (Limpopo Estuary, Zongoene, Limpopo District, Xai-Xai District).. ▪ Zambézia (Chinde and Bons Sinais, Quelimane). Responsible Instituto Oceanográfico de Moçambique (InOM,IP) Implementing partners Private Sector; United Nations Environment Programme (UNEP) Public Institutions: ProAzul, FP, GCF, MEF (designated authority for climate change) Recipients Private sector and communities Estimated investment USD 50.000.000 P4.5 Building the resilience of coastal communities through ecosystem adaptations 53Blue Investment Opportunities Portfolio P4.6 Sustainable production of horticultural crops in coastal areas General objective The project aims to establish fruit and vegetable production on coastal farmland under the influence of salt water in Mozambique. Indicative scope The project aims to establish fruit and vegetable production on coastal farmland under the influence of salt water in Mozambique. The project will fill an existing structural deficit gap; according to some estimates, Mozambique imports ~USD15-20 million worth of fruit and vegetables from South Africa every year. However, along Mozambique’s estuaries there is high potential for fertile land and abundant water, but the water and soils are salty due to saline intrusion. The proposed project uses an innovative technology in which it employs Seawater Greenhouse (SG) technology, which in this project, given the climatic conditions, will be adapted for cultivation in shading (Suitability of technologies in the local context). SG technology is already being commercially implemented by Sundrop Farms in Australia. The first trial of this technology in Africa is being developed in Somalia. The technology uses a combination of solar- and wind-powered evaporative cooling, reverse osmosis (RO) desalination for freshwater irrigation and photo-selective shade assembly construction to achieve high crop yields (e.g. tomatoes) of 300 700t/ha/year. Table salt is a marketable by-product of the process. The project will provide a lasting solution to seasonal and increasingly erratic rainfall, drought conditions and prolonged droughts for more than 9 months of the year, low vegetable production, low nutrition among local communities and low use of marginal agricultural land in estuaries under the influence of salinisation. It will also increase the level of employment as the operation is expanded and downstream multiplier effects (packaging, processing, etc.) are realised. It is proposed to implement a demonstration pilot programme in two locations, namely Gaza, Zongoene, at the mouth of the Limpopo, and Zambézia, in the Bons Sinais estuary, with the possibility of replication along the entire length of the Mozambican coast. Geographical coverage ● Gaza, Zongoene, at the mouth of the Limpopo. ● Zambézia, Bons Sinais estuary Responsible Mozambique Oceanographic Institute, IP (InOM) Implementing partners Private Sector; Public Institutions: ProAzul, FP, Seawater Greenhouse Limited (UK), IDEPA, IP Recipients Private sector and communities Estimated investment USD 700.000 Blue Investment Opportunities Portfolio54 General objective Engaging cultural and creative industry players in the circular economy and reducing pressure on natural resources Indicative scope The project consists of travelling exhibitions and workshops aimed at influencing local players to routinely hold exhibitions under the same concept in the context of the blue economy, in which (i) making full use of fish, (ii) reusing and recycling marine waste and (iii) levelling the pressure on resources are the underlying commands. To this end, the project will seek to (i) stimulate creativity in the rational use of resources and the preferential choice of sustainable practices, (ii) promote the sharing of experiences directly or indirectly related to the circular economy applied to the aquatic environment, in the context of science, technology and innovation, with a view to giving impetus to the blue economy, (iii) exhibiting and valorising “goods” that are the result of scientific, technological and innovation initiatives and progress, at different scales, in the various fields of knowledge that use the sea and inland waters, and (iv) creating exchanges and closer ties between operators that could potentially trigger synergies in favour of sustainable development. Geographical coverage Maputo, Sofala and Cabo Delgado Responsible Museums of the Sea Implementing partners MTA, MICULTUR, Gaza Provincial Governments, Gaza Provincial Secretary of State and NGOs Recipients The general public (giving priority to disaster victims, with a view to revitalising their economy) Indicative investment USD 150.000 P4.7 Project Say no to waste! 55Blue Investment Opportunities Portfolio General objective Increasing access to finance for Blue Economy-orientated businesses in Mozambique Indicative scope The private sector in Mozambique is characterised by a degree of informality estimated at 89%, which represents around 30.9% of the national GDP. Financial inclusion is a particular challenge, especially for micro, small and medium-sized enterprises (MSMEs), as is the difficulty in accessing credit, especially in rural areas. Because of this and in order to promote the development of “blue businesses” in Mozambique, the project focuses on ensuring the availability of financial resources for the formal private sector, which meets specific criteria for inclusion in the Blue Economy sector. The following sectors will be eligible: 1) Circular Economy (Proposals focusing on: eliminating waste (e.g. removing plastic), maintaining products and materials in use and regenerating natural systems) 2) Tourism and recreation (focus on ocean and coastal activities) 3) Renewable energies applied to BE 4) Marine biotechnology 5) Desalination 6) Technology applied to BE In Mozambique, through ProAzul, FP, which has a specific unit for private sector development, initiatives linked to the Blue Economy (with a focus on fisheries) have been funded through the Mais Peixe Sustentável Programme9 with recognised success at national level. Given the implementation arrangement already defined due to the institution’s previous experience, this is a “plug-and-play” project in the portfolio and therefore its development will take place in line with the availability of financial resources for its implementation. Geographical coverage National Responsible Fundo de Desenvolvimento da Economia Azul (ProAzul, FP) Implementing partners Public Institutions: InOM; ADNAP, IP; INIP, IP; Private Sector, NGOs, communities Recipients Private sector and coastal communities Indicative investment USD 20,000,000 | Possibility of phased investment 9 Edição 1: USD 2,5 milhões, Edição 2: USD 14 milhões. P4.8 Co-financing Project for Blue Business Development Initiatives - Matching Grants for Blue Business Development Blue Investment Opportunities Portfolio56 P4.9 Incubator for SMEs focused on the Circular Economy within the framework of the Sustainable Blue Economy General objective Increase the profitability and employment opportunities of Small and Medium sized Enterprises (SMEs) operating in the Blue Economy sector through the circular economy approach. Indicative scope The Circular Economy concept is based on the reduction, reuse, recovery and recycling of materials and energy. This approach is crucial for sustainable development, especially in the blue economy sectors, which have an impact on the environment. In addition to environmental considerations, the Circular Economy has the potential to increase the profitability of companies by reducing waste and generating new products and by-products, which also contribute to creating job opportunities and generating income for the surrounding communities. The SME Incubator project aims to train existing companies and entrepreneurs operating or wishing to operate in the Blue Economy sector in the creation of new product lines and services that result from the utilisation of waste and the introduction of technologies that reduce the waste of materials and energy. From a conceptual and implementation point of view, the incubator will have technical assistance from the Institute for the Promotion of Small and Medium sized Enterprises (IPEME) and the project’s partner companies, which are already positioned in the market and will facilitate the knowledge transfer process. In operational terms, the Incubator will consist of infrastructures with suitable technical equipment (from simple, environmentally sustainable machines and techniques to state-of-the-art equipment with the latest technology) and qualified personnel to train SME entrepreneurs and technicians. Strategically, the project will have a phased approach, starting with products that are more likely to be accepted on the market or that contribute to increasing companies’ profit margins by reducing and/or recycling materials. In the first phase, the Incubator units will cover the following areas: 1) Fishery products and by-products - fish processing (fish cakes, tinned fish, smoked fillets, etc.); fish feed and silage; 2) Sorting and recycling marine waste (plastics and glass); 3) Waste management and handling in harbours/vessels (incl. lubricants and ballast water treatment) 4) Planting and processing salicornia (a substitute for salt in gastronomy and with therapeutic properties) 5) Quality standards and HCCP for the supply of products to the hotel industry, oil and gas platforms. In order to guarantee the sustainability of the incubator, especially after the project has run its course, the management model will be through public-private partnerships, where the public sector mobilises funding for the initial investment and facilitates links between investors and entrepreneurs, and SMEs ensure the running of the incubator, including staff costs and equipment maintenance. Geographical coverage Sofala - with the possibility of expansion to Zambézia, Maputo and Nacala Responsible Fundo de Desenvolvimento da Economia Azul (ProAzul, FP) / Institute for the Promotion of Small and Medium-sized Enterprises (IPEME, IP) Implementing partners Public institutions: InOM, ADNAP, IP, INIP, IP; Private sector, NGOs, communities Recipients Private sector, SMEs and coastal communities Indicative investment USD 3,000,000 | Possibility of phased investment Sectors covered ● Sun and sea tourism ● Nature-based tourism ● Community-based tourism Related key challenges ● Lack of infrastructure / investment ● Limited technical capacity to produce goods and offer nature-based tourism services ● Poor capture of the benefits of tourism in terms of value ● Mitigation / elimination of pollution and environmental degradation caused by tourism Link to the SDGs PILLAR 5 : COASTAL AND MARINE TOURISM 59Blue Investment Opportunities Portfolio General objective Improve tourism’s contribution to the Blue Economy by harnessing natural capital and engaging coastal communities through public-private partnerships and co management initiatives. Indicative scope Mozambique has a long coastline of around 2,700 kilometres, with a landscape that represents high-value capital for the development of tourism. The vast hydrographic network, in addition to the ecosystem services they provide for the flourishing of the various species of flora and fauna, and the development of the economies of the adjacent communities, are important tourist attractions that are still underutilised. The government’s five-year plan (PQG) has chosen tourism as one of the four priority activities, considering the country’s potential and the sector’s ability to generate income and jobs. Tourism is also an essential vector in the blue economy due to its contribution to biodiversity conservation. The Strategic Plan for Tourism Development (2016 - 2025) defined five priority tourist destinations: Maputo, Vilankulo, Gorongosa, Quirimbas and Niassa. These are also Key Biodiversity Areas. The programme consists of the development of public-private partnerships through concessions and co-management partnerships for the development of infrastructures and/or their improvement and management, as well as the development of capacities of the private sector and local communities for the transformation of natural capital into investment, income and employment for communities through nature-based tourism, with a focus on the protection of sensitive ecosystems and endemic species. The programme aims to strengthen the partnership between public entities, philanthropic and research/conservation organisations and the private sector, involving local communities. Similar partnership models are already being developed in the Gorongoza Reserve and the Bazaruto Archipelago (Vilankulo), which the programme will strengthen and replicate through a substantial tourism marketing component. The Sustainable Blue Tourism Programme will be implemented within the framework of investment policy and legislation, which guarantee the conditions for attracting the private sector to invest. The following are components of the project: 1) Creating a favourable environment for investment in sustainable blue tourism, with a focus on Key Biodiversity Areas and Tourism Priority Areas. This component includes the following strategic actions, among others: a. Preparation of strategic environmental impact assessment studies in line with the Local development plans and business plans for tourism operators and potential investors;; b. The creation of virtual one-stop-shops to provide potential investors with information on development plans, legislation and all the information they need; c. Design and implementation of a tourism marketing programme involving young entrepreneurial start-ups, on a competitive basis, aimed at the domestic and international tourism segments. P5.1 Sustainable Blue Tourism Programme Blue Investment Opportunities Portfolio60 2. Development and improvement of infrastructures to boost sustainable blue tourism, through concessions and co-management agreements, involving the private sector and communities, geared towards accommodation, catering and camping infrastructures and recreational, sporting and leisure activities attractive to tourists - e.g. viewpoints, boat launching ramps, oceanariums (virtual, open and/or closed), bang-jumps, diving services, canoeing or kayaking. Some of the initiatives are mapped and referenced in the Government of Mozambique’s document on investment opportunities in conservation areas10. 3. Training for tourism operators, sports agents and communities on Blue Tourism, based on the Sea and inland water bodies (Sports, Leisure and Recreational Experiences). The training is aimed at creating mutually beneficial partnerships for the private sector, communities and sports agents. E.g. cultural tourism - event production, local circular economy initiatives. O incentivo ao sector privado para o investimento pode ser por via de linhas de crédito bonificadas (match grants voltadas ao turismo com base na natureza), Parcerias Público Privadas e incentivos fiscais e não-fiscais à luz da legislação de investimento. A melhoria de infra-estruturas inclui as verdes que contribuem para melhorar o funcionamento dos serviços ecossistémicos (fluxo hidrológico dos rios, estuários, recifes de corais, mangal, entre outros) e combate a erosão, podendo-se aceder a fontes de financiamento inovadoras como os créditos de carbono, doações, compesações/ contrapartidas pela contribuição na conservação da biodiversidade, entre outras. Geographical coverage ● Maputo and Macaneta National Park (Maputo province and city) ● Vilankulo and Bazaruto Archipelago National Park (Inhambane Province) ● Gorongosa National Park (Sofala Province) ● Primeiras and Segundas Islands Environmental Protection Area (Zambézia and Nampula Provinces) ● Lake Niassa Reserve (Niassa Province) ● Quirimbas Archipelago National Park (Cabo Delgado Province). Responsible ANAC and INATUR Implementing partners Local governments, INADE, IP, Museums of the Sea, ProAzul, FP, Private Sector, NGOs, Philanthropic and Research Organisations. Recipients Private sector, communities, tourists and sportspeople Indicative investment USD 20,000,000 | Possibility of phased investment 10 https://www.anac.gov.mz/wp-content/uploads/2021/08/Turismo-baseado-na-Natureza-2020.pdf 61Blue Investment Opportunities Portfolio General objective Improve the tourism sector’s contribution to mitigating the effects of climate change, preserving a healthy environment, conserving biodiversity and improving the living conditions of communities in the main tourist destinations. Indicative scope The tourism value chain includes various sectors, from construction, transport, energy, service provision, industry and commerce, agriculture and fisheries, among others. Therefore, the sector can directly or indirectly have a negative impact on the health of the environment and the conservation of biodiversity. In Mozambique, the greatest demand for tourism is in the sun and beach segment, with the main tourist destinations being the beaches of Ponta do Ouro, Costa do Sol, Macaneta, Bilene, Xai-Xai, Chidenguele, Tofo, Estoril (Beira), Zalala, Chocas Mar, Fernão Veloso and Wimbe. To this end, tour operators invest in accommodation, transport, catering and leisure infrastructures, which sometimes do not respect environmentally sustainable standards. In addition, the massive presence of domestic and foreign tourists, especially at peak times, results in water and environmental pollution (waste and especially plastics), increased emissions of harmful gases into the atmosphere, degradation of habitats (dunes, dune vegetation, endemic species). Therefore, the integration of the tourism sector into the circular economy model is fundamental to the development of the blue economy, through the creation of value chains integrated into a circular model, increasing efficiency in the production of goods and provision of services, reducing/eliminating waste and creating opportunities for employment and income generation through innovation and creativity. The circular economy model assumes that the products and services provided are environmentally sustainable from a better perspective, socially beneficial for people and communities, creating value and employment, and that they are economically and financially viable and sustainable, generating profit for investors. In Mozambique and Africa as a whole, the rate of international tourists has tended to grow over the last 10 years (with the exception of the pandemic period - 2020 2021), but there is a discrepancy between the number of tourists and the amount they spend in the places of destination on purchasing goods and paying for services. This is another issue that the circular economy model can address by focusing on local content and innovative products that are environmentally sustainable and socially significant for local communities. The Platform for Integrating Tourism into the Circular Economy consists of a set of initiatives for the production of goods and services geared towards the tourism sector, to be implemented by public and private organisations and community associations, following the principles of the circular economy (reduce, reuse, recycle and rethink). The platform is made up of the following components: P5.2 Platform for Integrating Tourism into the Circular Economy Blue Investment Opportunities Portfolio62 1. Development of value chains integrated into the circular economy model. Prioritised value chains are agreed with tour operators, local suppliers and in consultation with potential consumers. Examples of circular value chains production and supply of organic cosmetics by artisan manufacturers to tourist resorts; production and supply of vegetables through conservation agriculture; 2. Creation of platforms for sharing resources between tour operators. This platform will enable different tour operators to sell consumers complete ranges of tourist services, without necessarily purchasing all types of equipment, which in many cases generates waste and inefficiency. The resource-sharing platform also includes connecting and contacting suppliers (on the domestic and foreign markets) who offer environmentally friendly, long-lasting and reusable or recyclable products; 3. Creation of innovative products and services with local content based on the circular economy. This component consists of encouraging local entrepreneurs, youth associations/cooperatives, women’s associations/ cooperatives and fishermen’s community associations/cooperatives, producers, craftspeople, artists, promoters of recreational and sporting events to access funding for the promotion of local tourism, based on the reuse and recycling of products and by-products, import substitution and rethinking current business models with a view to reducing harmful impacts on the environment. Access to funding will be on a competitive basis. This initiative can be financed by the private sector, applying the polluter pays principle and the duty of environmental and social responsibility of water, soft drinks and alcoholic beverage production companies, travel agencies, tourist resorts, restaurants and bars, transport companies, event producers, petrol stations, among others. Matchgrants, donations and public-private partnerships can also be effective sources of project funding. Geographical coverage ● Maputo - Ponta do Ouro, Costa do Sol and Macaneta ● Gaza - Bilene and Xai-Xai ● Inhambane - Tofo ● Sofala - Estoril ● Zambezia - Zalala ● Nampula - Chocas Mar and Fernão Veloso ● Cabo Delgado - Wimbe Responsible INATUR Implementing partners Local governments, ProAzul , FP, private sector, NGOs, CBOs, micro-credit institutions. Recipients Private sector, local entrepreneurs and communities Indicative investment USD 5,000,000 | Possibility of phased investment Approach areas ● Doing business environment ● Maritime monitoring, control and inspection ● Community development Blue Economy policies and strategies ● Institutional development (governance, human, financial and material resources and public infrastructure) Related key challenges ● Insufficient technical staff for the development and implementation of EE policies and strategies ● Incipient institutional coordination ● Insufficient qualified data and information on the Blue Economy in Mozambique ● Difficulty of access to finance for the private sector, particularly MSEMs11 Link to the SDGs 11 They represent 90 per cent of the country’s private sector. PILLAR 6 : GOVERNANCE AND CAPACITY BUILDING 65Blue Investment Opportunities Portfolio General objective Developing the institutional capacity and human capital of public institutions to meet the challenges of developing the Blue Economy. Indicative scope The project consists of building, rehabilitating and equipping infrastructures that contribute to the development of the Blue Economy, in particular the building of the National Oceanographic Institute of Mozambique (InOM), equipping the Marine and Coastal Environment Research Centre (CEPAM), accrediting the laboratories of the National Fish Inspection Institute (INIP), the Fisheries School and the School of Marine Science. The project also includes training Mozambican technicians in various areas to meet the challenges of the Blue Economy. The components of the project are as follows: (1) Building, rehabilitating and equipping infrastructure for the development of the Blue Economy; (2) Providing scholarships and training for Mozambican technicians in the priority areas for the development of the Blue Economy; (3) Upgrading the Fisheries School and the School of Nautical Sciences to meet the challenges of the Blue Economy; (4) Reviewing, drawing up and compiling the relevant legislation and establishing and strengthening the entities that are essential for the implementation of the Blue Economy. Geographical coverage ● National (in general) ● Maputo, Cabo Delgado, Sofala (in specific cases) Responsible InOM, School of Fisheries, School of Nautical Sciences, INIP, IP Implementing partners ProAzul, FP; INAMAR, IP and ADNAP, IP Recipients Public Institutes, Training Institutions and the Private Sector. Indicative investment USD 40,000,000 | Possibility of phased investment P6.1 Strengthening Governance and Institutional Development Blue Investment Opportunities Portfolio66 General objective Improve the efficiency and effectiveness of ocean and coastal surveillance activities, through the use of modern technologies, to combat illegal activities in Mozambique’s Exclusive Economic Zone. Indicative scope Like other coastal countries, Mozambique also suffers from illegal activities that damage the health of coastal areas and the oceans (including Illegal, Unreported and Unregulated Fishing - IUU, dumping of waste in inappropriate places, disposal of plastics and other materials). There are reports of severe economic damage due to illegal practices, for example in extractive fishing, estimated at least USD 60 million. Effective monitoring of these activities is a challenge on a national, regional and global scale for a number of reasons, including the limited technical capacity of the institutions, weak coordination capacity, reduced alternatives/approaches which, in many cases, do not adequately exploit the use of technologies to strengthen the operational capacity of monitoring. In this context, the project aims to provide Mozambique with greater institutional and technological capacity for surveillance on land and at sea. Bearing in mind that surveillance is a sovereign activity of the country, the components for implementing the project are as follows: 1) Strengthening the system for sharing information on maritime crime and illegal fishing: developing a mechanism for coordinating and sharing information between the sectors involved in monitoring maritime and coastal activities, with a focus on marine pollution, illegal fishing, smuggling, illicit drug trafficking, piracy, among other crimes. This component will prioritise the creation of an intersectoral task force to coordinate the use of human and material resources, the development of information-sharing platforms and alert systems, and a risk assessment system for mapping/identifying areas to be prioritised for routine monitoring, in order to discourage illicit practices at sea and in inland waters. 1) Technological infrastructure. Enabling the use of mobile phones to record data and drones equipped with artificial intelligence technology to expand monitoring capacity on land and at sea, and the installation of sensors and radars in the north, centre and south. Vessel monitoring systems will be reinforced with VMS and AIS devices. Based on risk assessment and shared information, this component will also acquire equipment kits which would be purchased (boats, drones, etc.) and allocated teams for routine inspections at sea and on land in the areas considered to be priorities. P6.2 Ocean and coastal surveillance 67Blue Investment Opportunities Portfolio 3) Equipping and training human capital. Identifying needs and creating sustainable technical conditions in the long term. The component also seeks to exploit synergies with other initiatives (e.g. South Africa/ Tanzania/Kenya, France, USA) to provide effective surveillance in the Exclusive Economic Zone (EEZ) and better orientation of patrol boats and/or drones in the EEZ, also contributing to the implementation of the POEM/PNDT. 4) Monitoring the implementation of the environmental management plans of all organisations carrying out activities at sea, including hydrocarbon projects. 5) Operationalisation of the Maritime Surveillance Operations Coordination Centre (CEFMAR) as part of the implementation of the Law of the Sea, with a view to establishing the institutional framework for maritime surveillance in the long term. The increase in safety would therefore also pay off economically, since in the short term it would be expected to increase export revenues, reduce Illegal, Unreported and Unregulated Fishing (IUU Fishing) and create a safer environment for maritime tourism (yachts, cruises, sport fishing), while also contributing to the generation of formal jobs. Geographical coverage Coastal and inland water provinces Responsible Instituto Nacional do Mar, IP (INAMAR, IP) Implementing partners MEF, ADNAP, IP, NGOs (BIOFUND, WCS, Conservation Drones, Global Fishing Watch, Maritime Security and Piracy), Universities, CCPs, Coastal, Lake and River Police and Maritime Courts. Recipients Coastal communities and the private sector Estimated investment USD 20,000,000 | Possibility of phased investment Blue Investment Opportunities Portfolio68 General objective Attracting private sector companies to a specific geographical area selected as a priority, to stimulate the development of innovative activities that boost the Blue Economy 12. Indicative scope The Blue Economy Special Economic Zone (ZEEA) will focus on the development of the Blue Economy in Mozambique through the private sector, with an impact on development for communities, conservation and renewal of marine resources. In order to increase the attractiveness of the EEZ for potential investors, tax benefits will be granted similar to the other EEZs in Mozambique (e.g. Nacala and Beluluane EEZs), which are areas of economic activity where goods and services that are traded, produced or processed for export are totally exempt from various customs and tax levies. The technical approach falls within the legal framework of Special Economic Zones (Ministerial Diploma 202/2010). The ZEEA could be established in a geographical location that makes it possible to capitalise on other efforts by the Government of Mozambique to attract the private sector through tax benefits with high potential for the implementation of Blue Economy activities. The main components of this project are as follows: Component 1: Establishment of the geographical area for the ZEEA: 1) Selection of the area with the right potential to increase exports of innovative Blue Economy services and products; 2) Design of the ZEEA development plan; 3) Design of the regulations for access to and management of the ZEEA; 4) Government approval of the ZEEA and respective management instruments Component 2: Promotion of the ZEEA 1) Organising roadshows, investor seminars and other events at national and international level to promote the EEZ. This could be done by combining the efforts of the state and a private organisation, which could be co-financed by the state for this purpose. 12 Este é um projecto previsto no estudo Financing Mechanisms for Sustainable Blue Economy Development in Mozam bique (World Bank, 2019). Em princípio, está orientado para uma zona económica “virtual”. Esta ideia pode ser considerada, embora possa resultar no aumento da complexidade do projecto. P6.3 Sustainable Economic Zone of the Blue Economy 69Blue Investment Opportunities Portfolio 2) Identification of anchor projects that can support the implementation of the ZEEA’s fundamental infrastructures; 3) Allocation of the projects on the plots designed in the development plan and drawing up the timetable for setting up the companies; Component 3: Development of infrastructures and establishment of companies 1) Construction of basic infrastructure: power, water, access, etc. 2) Establishment of administrative to facilitate flexible business licensing, health, safety, etc. 3) Implementation of the companies according to the respective schedule Geographical coverage In the first phase, a single ZEEA will be selected from among the strategic regions for the development of EA’s economic activities, namely: Zambezi Valley, Inhassunge, Chókwè, Nacala and Metangula. Responsible ProAzul, FP Implementing partners Public Institutions: MEF, APIEX, University, Private Sector, Co-operation Partners. Recipients Private Sector Indicative investment USD 2,000,000 | Possibility of phased investment Blue Investment Opportunities Portfolio70 General objective Promoting the coordination and integration of the sectors that make up the Blue Economy and their digitalisation, by stimulating the development of emerging and innovative Small and Medium-sized Enterprises (SMEs). Indicative scope The development of the Blue Economy is a recent approach that encompasses a variety of stakeholders, from academia to civil society and, above all, the private sector, which is intended to be the main driving force. Digitalisation and technological innovation are the tools that accelerate the integration of the different sectors of economic activity into the BE, by reducing polluting gases, with more efficient logistics solutions for the transport, tourism and various services sectors, contributing to the energy transition by adopting clean energy technologies in the fishing and aquaculture sectors, port infrastructures, among others. To this end, the constitution of BE clusters and a Hub for sharing knowledge and innovation are the essential elements of this initiative, and the development of SMEs through start-ups is the implementation strategy. Mozambique’s Blue Cluster project consists of a platform for the development of start-ups with a view to promoting technological innovations in the blue economy and engaging the private sector, focussing on young entrepreneurs and promoting SMEs. The project consists of 3 components:: (1) Incubator, focused on creating capacities for startups to develop impactful and scalable solutions in the BE; (2) Accelerator, to boost more advanced startups, including mentoring and attracting investors in exchange for a stake in the share capital; (3) Knowledge generation centre (Blue Economy Hub), consisting of a platform for sharing information and knowledge between different stakeholders (academia, SMEs, the public and private sectors, NGOs), a dynamic platform for investment opportunities, advocacy services, studies and market analyses specialising in BE, and the production of reports and newsletters on BE. The implementation of Mozambique’s Blue Cluster initiative will be developed in parallel with the development of the Blue Economy satellite account, which should feed back into each other in terms of information and market research based on trends in macroeconomic indicators. Start-ups will be promoted on a competitive basis, selecting innovative projects, providing opportunities for training and exchange of experiences for their improvement and partnership and funding opportunities for bankable projects. troca de experiências para o seu aprimoramento e oportunidades de parceria e financiamento para os projectos bancáveis. Geographical coverage National Responsible ProAzul, FP Implementing partners Universities, Private Sector, NGOs, Development Partners.. Recipients Private Sector - SMEs Indicative investment USD 2.000.000 | Possibility of phased investment P6.4 Promoting a Window of Business Opportunities in Mozambique’s Blue Economy - Mozambique’s Blue Cluster 71Blue Investment Opportunities Portfolio General objective To report on the socio-economic performance of the sectors that make up Mozambique’s Blue Economy. Indicative scope The production of reliable statistics is one of the priorities of the Ministry of the Sea, Inland Waterways and Fisheries (MIMAIP), referred to in strategic documents such as: Policy and Strategy for the Sea (POLMAR), ProAzul Roadmap, Financing Mechanisms for Sustainable Blue Economy Development in Mozambique, among others. Implementing a Satellite Account (SA) for the Blue Economy in Mozambique is a prerequisite for better understanding and reporting on its relevance to the country. Recent work by the OECD13 affirms the importance of new approaches to quantifying the BE, with the development of Satellite Accounts being pointed out as one of the paths to be followed, taking advantage of lessons learnt from work carried out in different countries, many of which are referenced in the study Conta Satélite do Mar: Exemplos Nacionais e Internacionais (Satellite Account of the Sea: National and International Examples) (DGPM/INE, 2016)14. The process of creating this instrument is divided into the following components and activities: Component 1: Preparation of the Blue Economy Satellite Account, covering activities such as: 1) Validation of the economic sectors and activities of Mozambique’s Blue Economy (BE) 2) Analysis of the type of goods and services traded (from 2.1.) with reference to Mozambique’s Economic Activity Classification (CAE) 3) Analysis and adequacy of data sources related to the sectors identified 4) Preparation and testing of feasibility, improvements, data collection, processing and analysis 5) Preparation of the methodological and procedural manual for CS Component 2: Institutionalisation of the Satellite Account, covering activities such as:: 1) Preparing the roadmap for incorporating CSM into national accounts 2) Definition of the structure needed to operationalise the CSM This tool, which brings together the main Blue Economy data and indicators, qualifies the evidence-based decision-making process, serving as a basis for prioritising the allocation of public and private investments, reviewing and formulating public policies and developing, structuring and evaluating EE programmes and projects. Given that some BE sectors are emerging, there may be a need to implement the SO gradually, with those sectors that already have information available being the first to be included in the SO and the systematic improvement of the process allowing other sectors to be incorporated in a phased manner. 13 OECD (2019). Rethinking Innovation for a Sustainable Ocean Economy. OECD Publishing, Paris. 14 Economia do Mar: Exemplos Nacionais e Internacionais (2016) P6.5 Blue Economy Satellite Account Blue Investment Opportunities Portfolio72 Geographical coverage National Responsible ● •Blue Economy Development Fund, FP (ProAzul,FP)- Executive Coordination ● •National Statistics Institute (INE) - Implementation Implementing partners MIMAIP, MIREME, MICULTUR, MTC, MTA, FUNAE, FNDS, University, Sector Private, Civil Society Organisations (CSOs) Recipients Ministries, private sector, civil society, academia - interested in obtaining official socio-economic data on Mozambique’s Blue Economy sectors. Indicative investment USD 1.000.000 73Blue Investment Opportunities Portfolio P6.6 Aquatic Literacy General objective To promote scientific knowledge, including socio-cultural and artistic knowledge, about the aquatic environment through creative and interactive approaches. Indicative scope Mozambique’s long coastline and vast hydrographic network mean that development strategies have to take advantage of the resources and opportunities provided by the sea, rivers and lakes. To this end, the promotion of scientific knowledge through informal and interactive channels allows the most complex aspects of science to be understood by people of different age levels and educational backgrounds, including communities that have limited access to teaching materials and resources. In addition to addressing the issue of access to knowledge and translating it into a simpler and more creative form, the Aquatic Literacy project aims to valorise local knowledge and potential through a thematic approach, based on the realities and circumstances of the different communities and target groups. In its intervention, the project relies on the following products and/or resources: a) MarTeca: It is a documentation, information and resource centre that can be accessed in person or remotely for various specific information resource services. MarTeca aims to be a resource centre par excellence, where all the knowledge produced in the different areas of knowledge about the sea can be translated into teaching resources and adapted to the local context, for subsequent dissemination through knowledge hubs, which can be schools, civil society organisations, artistic and cultural groups, among others. The knowledge centres will have a thematic approach, taking into account the ecological characteristics and economic potential that the aquatic environment offers. This structure will make it possible to create specialised hubs that are part of the museums of the sea network, whether they are administratively dependent on the Museums of the Sea or otherwise.. b) Model Science Centre The Centre consists of a sensory demonstration (sight, hearing, taste, smell or touch) of the science behind natural phenomena and the operation of technologies developed by man to make use of the resources provided by the aquatic environment. The centre aims to promote scientific and technological culture in relation to the aquatic environment, through democratisation of knowledge by making scientific subjects and technology within the reach of ordinary citizens, so that they can participate more effectively in the blue economy as its agents. The science centre will essentially consist of a series of cognitive development modules, which are interactive exhibitions or simulators that creatively give visitors the opportunity to observe in a dynamic and interactive way how certain natural phenomena or technologies occur, such as how the water cycle works, the process of desalinising sea water, the process of generating energy from the sun, river and sea water, etc. The selection and construction of cognitive development modules will be based on the guidelines of the State ‘departments’ that oversee the areas of Education, Science and Technology and Technical-Vocational Education, as essential for basic knowledge by the average citizen, and will also contain a ‘quota’ for local content. The network of science centres to be established throughout the country will have a transversal ‘common core’ and variable ‘local content’ according to the specific context. Blue Investment Opportunities Portfolio74 c) Saber Azul Saber Azul consists of the production and dissemination of television and radio reports through a series of programmes in a talk show format, conducted by a moderator and presented once a week for 60 minutes. The programme includes a series of headings, all designed to stimulate knowledge about the aquatic environment in a playful way. d) Showmar Considering that two thirds of the population of Mozambique live in coastal areas, most of them are young and have a low level of education, which means that they have limited access to scientific knowledge about the aquatic environment. However, the same population is highly dependent on natural resources for their subsistence, so there is a need to include them in blue economy in order to guarantee the sustainable use of resources. Showmar consists of a means of mass communication, materialising in the form of a showitinerante, a “stage truck”, which combines entertainment and blue economy activities, featuring multidisciplinary themed dances to which will be added other forms of artistic expression inherent to each location - such as music, theatre, dance, cinema, among others - as well as lectures and related activities. It will therefore favour the creation of local partnerships with activists, artists and community leaders with a view to defining strategic platforms for continuing civic education in the post-project phase. In fact, a lot of material will have to be produced with the involvement of local agents. As such, they will need to be trained in communication techniques applied to the subject, with a view to engaging the communities as much as possible in matters relating to the aquatic environment. e) Exhibition: Living from and with the sea The activity consists of exhibitions in the classic model, but with the particularity of being itinerant, travelling to meet the target audience. The initiative aims to produce and disseminate educational content about the aquatic environment, and can be implemented in rural areas where access to information and communication technologies is challenging. It targets audiences from different strata, with children and young people (students) being the main target. The exhibition serves as a tool for transmitting, in an inclusive way, values of citizenship in the sustainable management of resources, so that in the medium to long term there can be a rise in the level of general culture on relevant aspects inherent to the subject and, consequently, proactive and responsible behaviour in the preservation of the aquatic environment. In order to guarantee the sustainability of the activity, in the context of decentralised governance, the aim is to test a tripartite model of action between (i) the Museums of the Sea, (ii) local state bodies and (iii) cooperation partners. In fact, the activity had an experimental phase from 2016 to 2022 in five provinces, with the next stage corresponding to the pilot phase, to be held in Gaza province, for later expansion throughout the country. The exhibitions have the particularity of being permanent and the contents are printed on waterproof material so that they can be displayed outdoors and thus facilitate access by the general public. 75Blue Investment Opportunities Portfolio Geographical coverage National Responsible Museums of the Sea Implementing partners MTA, MICULTUR, MINEDH, MCTES, SEETP, Provincial Governments, Provincial Secretariats of State and NGOs; DGPM; 25 de Abril Documentation Centre and North South Library, research institutions; higher education and technical-vocational education institutions; UNESCO Chair in Biodiversity and Conservation for Sustainable Development; MARE; Agência Ciência Viva Recipients MarTeca: Students and Teachers Science Centre: General public, students at all levels of education, teachers and researchers Indicative investment USD 1.000.000 Blue Investment Opportunities Portfolio76 General objective Inventorying maritime and socio-cultural heritage, with a view to supporting the sustainable management of natural resources and publicising national heritage. Indicative scope Natural resource management measures lend themselves to global commands, so knowledge tends to be polarised, which calls sustainability into question as it pushes countries considered less economically developed into dependency. However, there is evidence of relevant local knowledge held by communities, and it is also important to understand aspects of behaviour and territoriality in order to better manage change. Thus, this line of research can provide new knowledge that can support decision-making in the context of natural resource management. Patrimar consists of carrying out systematic inventory studies of the national maritime heritage, including the socio-cultural dimension, which will support the Museums of the Sea in permanently updating their collection and developing the technical and scientific capacity of national researchers. The design of the research and training plan is based on mapping the needs of the different sectors of the Blue Economy. The research project follows its main lines of enquiry, as follows: a) Patrimar: It consists of a line of research and inventorying of maritime heritage using scientific methodologies, based on UNESCO procedures. In this line of research, in addition to the inventorying of tangible and intangible heritage, the project will provide financial and technical support for research into maritime heritage, including final year papers, academic articles, specific studies aimed at management and the development of public policies, among others. In this line of research, it is intended that maritime heritage will be organised by province, district and even at administrative post level, when justified. . b) Historical evolution of the sector The aim of this line of research is to provide an ongoing account of the historical development of the maritime sector and related areas, by recording primary sources that will be included in the Museum’s collection and can be used for consultation. This line of research seeks the testimony of key informants, both from the public sector and from private operators and communities, who were or are involved in the different development processes of the Blue Economy sectors. The acquis will be a source of consultation for studies and policy development, based on past experiences. It can also serve as a resource for inducting different stakeholders into the Governance of Blue Economy sectors in Mozambique. In order to guarantee the sustainability of the Maritime Heritage Safeguarding project, considering the need for activities to continue even after the end of the project, a training and capacity-building component for national researchers will be included. P6.7 Safeguarding Maritime Heritage 77Blue Investment Opportunities Portfolio Geographical coverage National Responsible Museums of the Sea Implementing partners Universities, local government; UNESCO Chair on the Cultural Heritage of the Oceans; DCV of the University of Coimbra, Melgaço Platform; Ondazul Platform; retired workers Recipients General public, public managers, pupils, teachers, researchers, students Indicative investment USD 605.000 Blue Investment Opportunities Portfolio78 P6.8 Project to promote cooperativism General objective Promoting the inclusion of informal operators, micro, small and medium-sized enterprises operating in the Blue Economy value chain in the formal economy to improve the Blue Economy’s contribution to the national economy through modern cooperativism. Indicative scope Promoting cooperativism is a priority for the private sector (informal and formal) with a view to accessing technology, know-how, markets and funding, while for the government it is a strategy to boost the private sector, especially in the primary sector and natural resource management, and broaden the tax base. The Ministry of Industry and Commerce (MIC) through IPEME, in collaboration with the Tax Authority and the Association for the Promotion of Modern Cooperativism, have started a programme to promote cooperativism, focusing on MSMEs and especially the informal sector. Within the framework of the development of the Blue Economy, cooperativism is a strategy for engaging coastal communities and MSMEs in initiatives of an eminently private nature, or of a public-private nature or in partnership with Civil Society Organisations, for the development of the different value chains that make up the blue economy. The traditional fishing and aquaculture sectors, but also emerging sectors such as community tourism, are dominated by associations and other non-profit or informal structures. Therefore, the promotion of cooperativism is the mechanism for inserting these groups into the formal sector, thus ensuring the sector’s greater contribution to the social economy and the promotion of formal employment and social security for coastal communities. The following are components of this project: 1) Implementation of the National Programme for the Promotion of Modern Cooperativism; 2) Support for the structuring of pilot co-operatives as part of the development of the Blue Economy; 3) Financing co-operatives for the development of blue economy value chains. Geographical coverage National Responsible Institute for the Promotion of Small and Medium-sized Enterprises (IPEME) Implementing partners Tax Authority (AT), MIMAIP (IDEPA, ProAzul); Private Sector (Associação para Promoção do Cooperativismo Modelo, CTA,) Recipients Fishermen’s and aquaculturists’ associations, MSMEs; general public. Indicative investment USD 1.000.000 PROAZUL’S ROLE 81Blue Investment Opportunities Portfolio The Fundo de Desenvolvimento da Economia Azul - ProAzul, FP, created in 2019, has the mission of promoting the sustainable development of Blue Economy (BE) activities by allocating resources and supporting the management of programmes, projects and investments. In this sense, the institution represents the focal point for all economic sectors with an interest in the maritime sector for matters of A. Identification of opportunities B. Structuring and coordinating programmes and projects C. Mobilisation resources In liaison with the various stakeholders, ProAzul identifies opportunities for sustainable development in the various sectors of the Blue Economy, aligned with national priorities, policies and strategies. It is MIMAIP’s “gateway” to invest ments in the BE. Transforming “ideas” into programmes and projects. Support in designing, structuring and implementing initiatives in the Blue Economy sector, following high fiduciary standards. ProAzul works with multiple actors, including government, co-operation partners, the private sector, NGOs, communities and academia. Mobilisation of human, material and financial resources to meet needs and/or capture opportunities in the BE. It includes the creation of mechanisms to finance the needs identified and the adoption of investment principles in the Blue Economy. Blue Investment Opportunities Portfolio82 PROAZUL’S FIDUCIARY EXPERIENCE Its action model has already mobilised more than USD 80 million to support various BE initiatives, implemented by public and private sector partners, and with prospects for expanding the investment portfolio. Recently, with the support of co-operation partners and MIMAIP institutions, ProAzul defined the portfolio of Blue Economy projects, the 7 investment principles for the Blue Economy and the mecha nisms for financing blue projects that are best suited to Mozambique’s reality, representing an impor tant milestone for the implementation of the Mozambican blue agenda. ProAzul enjoys the independence to adhere to the fiduciary requirements of cooperation partners and other good practices relevant to its operations. Because of this and its mandate, policies, processes and tools are constantly being improved to ensure greater transparency, effectiveness and efficiency, among other things in financial management, procurement, contract management, social and environ mental safeguards, monitoring and evaluation and project management. Experience in coordinating and managing ProAzul projects makes up the portfolio below: PROJECT OBJECTIVE BUDGET Sustainable Rural Economy Programme (MozRural) Partner: World Bank Improving the performance of small agricultural producers and AgriMSMEs and natural resource management practices USD 32.5 million Sustainable Rural Economy Programme (MozNorte) Partner: World Bank Improving the livelihoods of vulnerable communities and the management of natural resources in rural areas of northern Mozambique USD 22.7 million SWIOFish Partner: World Bank Improve efficiency in the management of selected priority fisheries at regional, national and Community levels. USD 37 million 83Blue Investment Opportunities Portfolio PROJECT OBJECTIVE BUDGET More Sustainable Fish Partner: World Bank 1. Improving the income level of traditional fishermen 2. Promoting micro, small and medium sized enterprises (MSMEs) USD 7 million (Phase 1) USD 7 million (Phase 2) Resilience of Coastal Communities to Climate Change Partner: Sweden Institutional and community strengthening to mitigate the challenges of climate change USD 1 million PROAZUL Partner: World Bank The project developed the ProAzul Roadmap, the Blue Economy investment principles and Innovative Mechanisms for financing the Blue Economy. USD 1 million INTERDISCIPLINARY MINISTRIES WITH AN INTEREST IN THE BLUE ECONOMY MINISTRY OF ECONOMY AND FINANCE MINISTRY OF FOREIGN AFFAIRS AND COOPERATION MINISTRY OF NATIONAL DEFENSE MINISTRY OF THE INTERIOR MINISTRY OF SCIENCE, HIGHER EDUCATION AND TECHNOLOGY MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT MINISTRY OF CULTURE AND TOURISM MINISTRY OF LAND AND ENVIRONMENT MINISTRY OF PUBLIC WORKS HOUSING AND HYDRAULIC RESOURCES MINISTRY OF MINERAL RESOURCES AND ENERGY MINISTRY OF INDUSTRY AND TRADE MINISTRY OF EDUCATION AND HUMAN DEVELOPMENT MINISTRY OF TRANSPORT & COMMUNICATIONS MINISTRY OF LABOUR AND SOCIAL SECURITY MINISTRY OF SCIENCE, TECHNOLOGY AND HIGHER EDUCATION STATE DEPARTMENT OF PROFESSIONAL TECHNICAL EDUCATION STATE DEPARTMENT FOR YOUTH AND EMPLOYMENT STATE DEPARTMENT FOR SPORTS REPÚBLICA DE MOÇAMBIQUE MINISTÉRIO DO MAR, ÁGUAS INTERIORES E PESCAS