The United Nations Development Programme (UNDP) and the Ministry of Economy of the Republic of Mozambique today signed the Economic Diversification Portfolio, marking a significant milestone in the country’s pursuit of inclusive, resilient, and sustainable development.

This signature represents a historic first for UNDP Mozambique, as it formalizes a portfolio approach rather than a traditional standalone project. This innovative framework aligns Mozambique with forward-looking UNDP country offices, Peru, Jordan, and Morocco—that in hat have successfully adopted portfolio methodologies to address complex development challenges and accelerate systemic change.

These experiences have demonstrated the value of moving beyond fragmented interventions toward integrated, adaptive frameworks that bring together policy, investment, and innovation to deliver sustainable and inclusive outcomes at scale.

The Economic Diversification Portfolio seeks to address Mozambique’s structural and interconnected economic challenges, characterized by heavy dependence on low-productivity agriculture and capital-intensive extractive industries, limited employment generation, and vulnerability to climate, security, and market shocks. Despite periods of economic growth, these constraints have contributed to persistent poverty, inequality, and limited economic resilience.

Recognizing that these challenges cannot be resolved through isolated interventions, the Portfolio adopts a systems-thinking approach, enabling coordinated, adaptive, and mutually reinforcing actions across sectors and stakeholders.

The Portfolio is jointly led by UNDP and the Ministry of Economy, in close collaboration with provincial governments and eventually supported by a broad coalition of partners, including United Nations agencies, development partners, multilateral development banks, private sector actors, financial institutions, and civil society organizations. Provincial Portfolio Platforms will serve as coordination hubs to align investments, foster co-creation, and ensure locally anchored and inclusive solutions.

Through this initiative, UNDP and its partners aim to drive inclusive and sustainable economic diversification by:

• Strengthening local economies and value chains;
• Unlocking the potential of green and blue economies;
• Expanding access to finance for small and medium enterprises (SMEs);
• Building relevant skills, particularly for youth; and
• Enabling innovation and investment.

The Portfolio supports national development priorities through policy dialogue, regulatory reform, capacity development, and catalytic investments, with the objective of fostering a more diversified and competitive economy. It emphasizes the importance of unlocking private sector participation and enhancing public–private collaboration as key drivers of transformation.

At its core, the Portfolio aims to enable three mutually reinforcing outcomes:

1. A diversified, resilient, and locally anchored economy supported by strong human capital;
2. Expanded inclusive employment opportunities and improved quality of life, particularly for young people; and
3. Strengthened public–private partnerships to unlock economic potential and resilience at national and regional levels.

To achieve these outcomes, the initiative promotes critical systemic shifts, including:

• Moving from fragmented, sector-based approaches to integrated and outcome-driven economic governance;
• Transitioning from extractive and low-productivity activities to diversified, value-added sectors, including green and blue economies; and
• Transforming skills development and financing systems to better align with market needs and economic opportunities.

The Portfolio focuses on four interconnected areas of intervention: natural value for inclusive economies, productive financing, transformative skills, and an enabling business environment. These areas are designed to reinforce each other, generating sustainable employment, enhancing resilience, and improving livelihoods.

At the signing ceremony, Mr. Edo Stork, UNDP Resident Representative, underscored that this innovative approach reflects a strategic transition from fragmented programming to a model grounded in collective action, shared ownership, and sustained systemic impact. By convening stakeholders, aligning investments, and fostering innovation, the Portfolio will contribute to accelerating progress toward the Sustainable Development Goals (SDGs).

This initiative comes at a critical time, as Mozambique continues to face multiple development pressures, including climate-related shocks such as cyclones, economic volatility, and structural vulnerabilities. By promoting diversification and strengthening economic systems, the Portfolio aims to reduce risk exposure while ensuring that growth is inclusive and broadly shared.

The UNDP Economic Diversification Portfolio stands as a partnership-driven, adaptive platform designed to test, scale, and sustain innovations that can transform Mozambique’s economic landscape and improve the lives of its people.