Mozambique Conservation Area Trust Fund Establishment Project

By: Tomas OliveiraFacilitator/Coordinator

1. Background

Throughout the time a number of policies and strategies were developed in the different sectors related to the conservation of biodiversity in Mozambique, namely Ministry of the Environmental Affairs, Agriculture, Fisheries and Tourism.

Need to have coordinated efforts and a holistic way and framework for the biodiversity conservation issue.

Proposed solution: Creation of a Country Conservation Policy.

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1. Background

Harmonization of all policies concerning conservation.

Establishment of an agency to coordinate and control all Conservation Areas

The establishment of a sustainable financial tools. This led to the First Conference on Sustainable

Financing for Conservation Areas in Mozambique (Maputo, 21 e 22 November 2007)

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1. Background

Recommendations in the Area of Conservation Funds– Task force to design TORs for the establishment

of a Conservation Trust Fund.– Feasibility study to consider different options for

the establishment of the Fund and its relationsship with other existing bodies like FUNAB( Environment Fund) and FUTUR/INATUR (Tourism Institute)

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1. Background

Conference Recommendations in the Area of Conservation Funds– Follow up on the feasibility study by the

Conservation Group (Composed by all stakeholders in this process, Government, Private Sector, Civil Society, Donors, etc).

– Conservation Group should seek experience of FUNBIO and REDLAC in this area.

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2. The Project

This Project in funded by AfD, KfW and CI – GCF through WWF – USA.

Countrywide Trust Fund to cover the gap between actual income and total expenses.

All conservation areas in the country (forests, animals, marine, etc)

Government Commitment. Some signals from WB and GEF/UNDP

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2. The Project

Familarizing with past work on conservation Meetings with main stakeholders Creating a number of legal, strategic and

operational tools for the establishment of the fund

Training: Basic Training on Conservation Trust Funds, Business Planning for Protected Areas and Exchange visits.

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3. The Mission/Vision

By 2015, the good management of the conservation areas in Mozambique no longer depend on public funds or externally funded projects, but on a well structured and sustainable financing system.

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4. The Fund – Operational Needs

Funds needed to cover funds operations– Between $200,000 and $300,000 per year– Once established and up and running 30% of the

total portfolio, but with experience can be brought down to 15%.

– Seed funds of $5 million and at a conservative 5% return would result in in $250.000 annually.

– Fund would live from these interest.

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5. The Fund – Conservation Areas Needs

A pilot study was done to assess CA needs: income, expenses and the gap between these in conservation areas in Mozambique.

This shows that the annual needs are on average $200,000 per conservation area.

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5. The Fund – Conservation Areas Needs

Using an appropriate model we concluded that to manage conservation areas in Mozambique, excluding agency operational costs, we would need approx. $5 million per year.

Thus, we would need seed funds of $100 million at 5% annual return.

This would result in $250,000 for annual management of the Conservation Areas.

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5. The Fund – Conservation Areas Needs

The annual $5 million needs result from a community based conservation area system.

A capital intensive model would require 5 times more, ie, $25 million.

Thus average needs lie at $15 million.

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5. The Fund – Conservation Areas Needs

Summary for Seed Funds Needs– Minimum amount $100m results in $5m– Maximum amount $500m results in $25m– Average amount $300m results in $15m– These figures are based on a number of

assumptions

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6. Status of the Project

Drafts of profile and some operational instruments (Investment strategy)

Drafts of TOR for Consultants, Board of Directors, Executive Management, Advisory Committees).

Clear about all the steps and legal framework. Trying to establish the Founders Committee(Criteria

and TOR available).

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7. Training Needs

Stakeholder engagement and communications

Fundraising, fundraising strategy, including identifying sources of funding

Development of an investment policy Strategic planning

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7. Training Needs

Operational procedures, including administration and grant-making

Monitoring and evaluation of institutional performance and biodiversity impact

Developing funding proposals

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End

Thank you for your attenttion!

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