Cross-Cutting Areas
Compact II Cross-Cutting Areas
The functions that underpin every Compact II project
Behind the three Compact II projects (CTR, PRIA, CLCR) sits a set of cross-cutting areas that ensure every investment is environmentally and socially responsible, informed by social analysis, fair to affected communities, rigorously monitored, and supported by transparent funding mechanisms. These functions are organisational, not geographic — they apply across all three projects and across all four covered provinces.
Each cross-cutting area below is led by a dedicated team inside MCA Mozambique and works in coordination with government counterparts, contractors, communities and the MCC.
Contribution of the Cross-Cutting Areas
Five functions that work across every project
This page presents the main cross-cutting areas and how each one contributes to the implementation of the Compact II projects.
Environmental and Social Performance
Environmental and Social Performance ensures the effective integration of environmental, social, health and safety principles across every activity financed by Compact II.
More than a compliance function, it identifies, assesses, mitigates and monitors risks and impacts, while promoting sustainable benefits for the communities, workers and ecosystems affected by the projects.
Contribution to Compact II
It applies a preventive approach grounded in the mitigation hierarchy and aligned with Mozambican law, the MCC Environmental and Social Guidelines, the IFC Performance Standards and MCA-Mozambique's Environmental and Social Management System (ESMS) — ensuring responsible development across the entire project life cycle.
Impact across the projects
Rural Connectivity and Transport
Oversees rural transport and connectivity works, preventing and mitigating environmental and social impacts on communities along the intervened corridors.
Agricultural Reform and Investment
Ensures agricultural investment and production respect environmental safeguards, soil and water management and the safety of workers and communities.
Coastal Growth and Resource Capitalisation
Supports the sustainable management of coastal natural resources, biodiversity conservation and the protection of ecosystems linked to coastal growth.
How we work in practice
- Maintains the Environmental and Social Management System (ESMS) to manage risks and impacts systematically.
- Oversees occupational and community health and safety requirements and emergency response.
- Promotes stakeholder engagement and continuous community consultation.
- Embeds environmental and social requirements in the supply chain and oversees contractors and partners.
- Drives transparency, auditing, performance reporting and grievance resolution.
Social Analysis
Social Analysis is a transversal function that embeds social considerations, community participation, inclusion and accountability into Compact II projects.
It identifies barriers, risks, opportunities and the specific needs of communities, so that investments are designed and delivered on the basis of evidence, public consultation and institutional accountability.
Contribution to Compact II
It ensures that investments in transport, agriculture and coastal growth deliver concrete benefits — particularly for women, youth, producers, workers and affected communities — reducing social risks and supporting responsible, transparent implementation.
Impact across the projects
Rural Connectivity and Transport
Manages the social risks linked to works, mobility and labour influx, and prevents sexual harassment, exploitation and abuse and human trafficking.
Agricultural Reform and Investment
Identifies and removes barriers to the participation of smallholders, women and youth in the economic opportunities created by agricultural investment.
Coastal Growth and Resource Capitalisation
Embeds social considerations into natural-resource governance, fisheries and coastal value chains, balancing economic growth with social stability.
How we work in practice
- Runs public consultations, community meetings and focus groups with communities and local authorities.
- Identifies and mitigates social risks throughout project implementation.
- Embeds social measures into work plans, contracts and safeguard instruments.
- Tracks social indicators and monitors the benefits reaching communities.
- Works with the Grievance Management Mechanism for safe, accessible accountability.
Resettlement
Resettlement is far more than a technical process: it is a commitment to people, to social inclusion and to ensuring that development happens in a fair, participatory and humane way.
It coordinates the physical and economic displacement arising from the projects, ensuring that affected households and communities are compensated and supported to rebuild their livelihoods with dignity and on a sustainable basis.
Contribution to Compact II
Through continuous dialogue, transparency and the integration of social safeguards, resettlement strengthens trust between the project and communities and contributes to institutional legitimacy and a people-centred model of development.
Impact across the projects
Rural Connectivity and Transport
Supports the resettlement linked to the new bridge over the Licungo River and the Mocuba Ring Road, through surveys, public consultations and jointly built solutions.
Agricultural Reform and Investment
Where agricultural investment involves land acquisition or access restrictions, it supports fair compensation and livelihood-restoration processes.
Coastal Growth and Resource Capitalisation
In coastal interventions, it monitors impacts on access to resources and livelihoods, in coordination with the communities concerned.
How we work in practice
- Prepares the Resettlement Plan with physical and socio-economic surveys of affected households.
- Holds participatory public consultations in affected communities, including the banks of the Licungo River.
- Ensures fair and timely compensation and the restoration of livelihoods.
- Maintains transparent dialogue and grievance-resolution mechanisms.
- Coordinates with the Social Analysis, Communication, Roads and Bridges teams and technical partners.
Monitoring, Evaluation and Economic Analysis
Monitoring, Evaluation and Economic Analysis tracks the progress, results and impact of Compact II projects against agreed targets.
It collects and analyses data throughout implementation, turning it into indicators, reports and economic analysis that underpin decision-making.
Contribution to Compact II
It ensures results are measured rigorously and that evidence — including assessment of the economic return on investments — strengthens transparency and accountability to the Government of Mozambique, the MCC and the public.
Impact across the projects
Rural Connectivity and Transport
Measures reduced transport costs, improved connectivity and the socio-economic impact of the infrastructure delivered.
Agricultural Reform and Investment
Tracks agricultural investment, productivity and income indicators, assessing the return on reforms and investments.
Coastal Growth and Resource Capitalisation
Evaluates the results of coastal-resilience, fisheries and natural-resource-management activities and their impact on communities.
How we work in practice
- Defines and tracks performance indicators for each project.
- Collects, validates and analyses field data systematically.
- Produces economic analysis and assesses the impact of investments.
- Delivers periodic reports to the Government, the MCC and the public.
- Commissions independent evaluations of results and impact.
Grants
Funding made available by the Millennium Challenge Corporation (MCC) is implemented by MCA-Mozambique through two main modalities:
Grant-making
Procurement of goods, works and services
Both modalities are governed by specific policies, procedures and regulations that ensure transparency, competitiveness and sound management of resources.
Grants are normally awarded through public competitions or calls for proposals. For this purpose, MCA-Mozambique launches competitive processes aimed at selecting qualified partners to implement activities aligned with the objectives of the Compact.
Grant-making mechanisms
- Simplified Grants
- Request for Applications (RFA) – One-stage process
- Concept Paper – Two-stage RFA
- Concept Note – Two-stage RFA (NOFO – Notice of Funding Opportunity)
- Direct Request, applicable only in exceptional circumstances
- Unsolicited Proposals, a limited-use option
- Programmatic Partnership Solicitation, for example, co-creation processes
Biofund & ProAzul partnership
As part of the formulation of Compact II, a Call for Proposals was launched, which led to the signing of partnership agreements with Biofund and ProAzul for the implementation of the Climate Change and Coastal Resilience Project. This partnership represents an investment of approximately 100 million United States dollars (USD), aimed at strengthening the resilience of coastal communities and promoting the sustainable management of natural resources.