Mozambique Connectivity and Coastal Resilience Compact - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Summary for the Mozambique Connectivity and Coastal Resilience Compact highlights the following constraints to economic growth: 

(1) High cost and unreliability of road freight and passenger transport services that inhibits input and output market development—including farm to market linkages—as well as access to basic public services;

(2) Agricultural policy, the legal and regulatory framework, and implementation of the existing framework that,

(a) inhibit the equitable and efficient functioning of input markets, vertical coordination of value-chains, and input and output market competitiveness; and

(b) leads to overexploitation of fisheries and depleted economic opportunities for coastal zones.