Public spending is one of the most effective instruments in promoting agricultural growth and reducing poverty in developing countries. Thus, monitoring public spending in agriculture is crucial. Agricultural growth also depends upon non-agriculture expenditures such as rural infrastructure, health and education. Since these investments may have differential productivity and poverty reduction effects, it is important to monitor spending in these sectors as well. This paper has two main objectives.

Poverty and vulnerability are among the major problems in Eastern and Southern Africa (ESA). To design appropriate poverty reduction initiatives for the region, it is not only important to understand the distribution of poverty but also the determinants. Various reports have documented information on the status, distribution and determinants of poverty in each of the countries.

The socio-economic condition in most COMESA countries is characterised by persistent high poverty levels and low food security. This is further compounded by the susceptibility of agriculture to climatic variability and other hazards as well as the vulnerability of impoverished and malnourished households to HIV/AIDS, market shocks and prolonged violent conflict. One of the biggest challenges governments in Africa face, with notably few exceptions, is the lack of sufficient financial and human resources to undertake the required action when disaster arises.

The fight against poverty remains the key development goal of the Government of Mozambique (GoM). Success in the transformation of the agriculture sector is considered a necessary condition for meeting the goal because agriculture and poverty are closely related. About 80% of the population heavily depends on agriculture as their primary source of livelihood, and about 73% lives in rural areas. Currently, the level of agricultural productivity is low compared to that in other developing countries, including southern African countries.

The Comprehensive Africa Agriculture Development Programme (CAADP) provides an agriculture-led integrated framework of development priorities aimed at reducing poverty and increasing food security by achieving an average of 6 percent agricultural growth rate every year.