50 years of partnership: From technical assistance to climate-resilient cities in Mozambique

This year, Mozambique and the Netherlands mark 50 years of cooperation in water and agriculture – a long-term partnership built on solidarity and shared learning. To reflect on this milestone, Maarten Gischler (Ministry of Foreign Affairs), Richard Bahumwire (SDU Beira) and Gerard Vos (FOUNT) share their perspectives on how decades of collaboration have evolved from technical assistance to a partnership for urban climate resilience, and what lies ahead in the decades to come.

It’s 1975. Mozambique has just gained independence. The country faces a collapsed economy and a shortage of skilled professionals. To fill the gap, the government invites foreign experts – known locally as cooperantes – including Dutch engineers specialised in water and irrigation. These Dutch cooperantes help to establish systems that would shape Mozambique’s water management for decades.

Over time, this technical assistance evolved into something much greater: a true partnership.

From technical assistance to partnership

“I think we started from the idea that we knew how everything should be done, because our water infrastructure is so well organised in the Netherlands,” reflects Maarten Gischler, Delta Coordinator at the Ministry of Foreign Affairs and long-time advisor to the Dutch water programme in Mozambique. “Over time, we learned to really start listening to what is happening locally, to enable local leadership, and to focus on long-term processes rather than quick results.”

The long-term involvement of Dutch experts fostered deep trust between Mozambican institutions and the Dutch Embassy. What began as sector-wide technical assistance gradually developed into sustainable, integrated water management – where governance, land management and finance all form part of the same equation. Nowhere would this become more evident than in Beira. Here, a 25-year vision for urban resilience would turn lessons into practice.

Beira’s masterplan becomes reality

By the early 2010s, Beira had emerged as a focal point. The city’s port was economically vital, growing 10 to 15 percent annually under a concession to a Dutch port operator since 1997. However, the port city was increasingly threatened by floods and rising sea levels.

Gischler: “When a Dutch mission visited in 2010, the city’s late mayor made a decisive request: ‘It’s great that you’re looking at the port, but half our city is under water time and again. We need a plan for that.’” That call led to the Beira Masterplan 2035, developed with support from Partners for Water and the Dutch Embassy. After being approved in 2014, it became more than a document. “The plan became a living chessboard,” recalls Gischler. “The late mayor laid that map on his table in the city hall, and projects were chess pieces that could move, connect and synergise.”

The results span new infrastructure, improved governance, better service delivery and more financial resources. “Neighbourhoods that once flooded for weeks now see water recede within days,” says Gischler. “The city’s cadastre system was digitalised, enabling property tax collection that grew from €600,000 to €2 million annually. That’s empowering for a city government. Being able to collect your own money and having an accountability relationship with citizens.” But infrastructure alone wasn’t enough to build climate resilience. It also required addressing other long-standing national challenges.

Why financing blocks resilient housing

When Cyclone Idai struck in 2019, followed by Cyclone Eloise in 2021, the storms exposed Beira’s deeper vulnerability. “Seventy percent of houses were damaged,” Gischler recalls. “It showed us that resilience is not just about drainage and dikes, it’s also about the homes people live in.”

One of the root problems for resilient housing? “Financing,” explains Richard Bahumwire, CEO of Sociedade de Desenvolvimento Urbano da Beira (SDU Beira), the municipal land development company. “Across Mozambique’s 34 million people, only about 600 mortgages have ever been issued.” Interest rates hover around 25 percent, and banks consider low-income households too risky. Without access to credit, people build informally – often in unsafe areas. “Self-built homes dominate the landscape,” Bahumwire adds. “They are affordable, yet extremely vulnerable. If roofs keep blowing off, you can’t call a city resilient.”

SDU Beira – a public-private company established in 2018 and fully owned by the Municipality of Beira – was set up to carry out the city’s Masterplan 2035. In response to the cyclones, it shifted its focus toward developing climate-resilient housing. The company started with the preparation of flood-prone land for construction. “Beira is like Rotterdam,” Bahumwire explains. “It lies below sea level. so if you want to build, you first need land that doesn’t flood.”

But how do you build affordable homes when potential buyers can’t access loans? “Local private developer Casa Real became a pioneer in tackling this challenge,” shares Gischler. In partnership with the Municipality of Beira, which secured the land and land titles, Casa Real has built, sold or rented around 150 affordable, climate-resilient homes since 2018 in the Inhamízua neighbourhood. “When Cyclone Idai struck, the first batch of ten houses was put to the test, and all subsequent homes benefited from improved cyclone-resilient design. Casa Real also experimented with different financing models, both for construction and for end-users.”

Maraza: breaking the financing deadlock

This year marked a breakthrough. The first stone was laid in Maraza, an integrated affordable housing project aiming to build 25,000 homes in Beira following the 150 homes in Inhamízua. With support from Partners for Water and the Dutch embassy, three hectares of land were raised by two metres, and essential infrastructure was installed. Casa Real then built eight pilot homes, merging their private-sector experience with the municipality’s public-sector initiative. “It’s just the beginning,” explains Bahumwire. “The journey of a thousand miles starts with one step.”

A revolving fund model that scales

“The eight houses prove more than concept – they also demonstrate a new financing model,” explains Gerard Vos from FOUNT, a Dutch impact investment advisory firm that helped to structure the financing. He continues: “Partners for Water provided a grant and loan to SDU Beira, which loaned funds to local developer Casa Real to build the homes. Once residents move in and prove they can pay their monthly instalments, GAPI Bank and the International Labour Organization (ILO) refinance the completed houses through a separate affordable housing facility.”

Residents enter “rent-to-buy” arrangements: monthly instalments at lower interest rates than commercial banks offer, with flexible schedules suited to irregular incomes. “When GAPI and ILO refinance the homes, SDU can reinvest that money in the next batch of houses,” explains Vos. “That’s how you scale.” He adds: “The model reduces risk for developers, makes housing accessible for buyers, and creates a sustainable investment cycle – all without traditional mortgages.”

From pilot to blueprint

“Affordable housing will be a game-changer for Beira,” says Bahumwire. “The city is growing, the port is expanding, industries are coming… people will need safe, affordable homes close to work.” The dream is ambitious: 25,000 homes in Maraza, transforming flood-prone land into safe, vibrant communities. But realising this vision requires proof that the model works at scale. “A track record is vital,” explains Vos. “You need to show investors: we’ve built, we’ve sold, we’ve refinanced. Meanwhile, the project is capturing payment data which is crucial for banks. Do that a few times and larger parties will say: okay, now we’re interested.” Bahumwire adds: “The Ministry has already asked us to present our model, because it is interested in scaling it to other Mozambican cities.”

Climate resilience requires system change

In Beira it became apparent that everything is connected when building a climate-resilient city. As Bahumwire states: “It’s not just about building resilient houses and water infrastructure, it’s about changing the system.”

For the Netherlands, Beira represents a learning laboratory. “What began as technical assistance has become a partnership of equals,” reflects Gischler. “The successes in Beira show that long-term, patient collaboration works.”

Fifty years of partnership have built trust, knowledge and system change. The foundation is laid. The proof of concept is nearing delivery. Now comes the scale-up, showing that climate-resilient cities are not only about infrastructure, but also about system change. And ultimately, about giving people a place to live, thrive and stay safe.