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This report offers POTENCIAR and the British High Commission (BHC) an analysis of how power arrangements influence the main social, political, and economic factors in service provision and decentralised governance in Mozambique. The results of the study will be used to refine POTENCIAR’s strategy and approach, as well as the design of PAIs in the health sector. While PAIs address issues across multiple sectors, sector analysis will also consider potential entry points for, as well as barriers to, the improvement of intersectoral coordination and strengthening of citizen participation. Through an analysis of the political economy of the health sector, this report will examine the formal and informal power structures and institutions that influence service provision and the decentralised governance of the health sector. Methodologically, the study is based on a bibliographic and documentary review of governance, decentralisation, and accountability across Mozambique, and the health sector in particular. These data are complemented by interviews with key informants who have knowledge of or actively participate in the health sector. The study is based on the northern province of Nampula, which POTENCIAR has identified for the implementation of its first pro-accountability initiative in the health sector.