The purpose of this study is to document how Mozambique, a country that suffered catastrophic civil war, has addressed some critical capacity building challenges in the post-conflict reconstruction period, and to suggest some lessons and/or options that might be relevant to the African Capacity Building Foundation (ACBF) in the design of capacity building programs in the post-conflict settings. Poverty and underdevelopment are due to capacity deficiencies, where individuals, groups and organizations do not have the resources and skills for their own well-being. Together with other donors, the ACBF seeks to help governments, the private sector and civil society organizations to develop and nurture their respective capacities in order to make choices and improve lives. Poverty elimination is the ultimate goal and capacity development is the means.