WASHINGTON, February 23, 2023 ¡ª Å·ÃÀÈÕb´óƬ Group¡¯s (WBG) Board of Executive Directors today endorsed a with the overarching goal of supporting Mozambique to achieve a greener, resilient, and inclusive development.
¡°This strategy will invest in inclusive institutions, laying the foundations for a more resilient society. We will support inclusive and green jobs, notably by creating opportunities for low-skilled labor outside subsistence agriculture,¡± noted Idah Z. Pswarayi-Riddihough, World Bank Country Director for Mozambique, Madagascar, Mauritius, Comoros, and Seychelles. ¡°We will support human capital and women¡¯s empowerment, thus helping to reduce inequality, improve inclusion, and build resilience.¡±
Mozambique has had one of the highest economic growth rates in Sub-Saharan Africa for over two decades. Growth was boosted by large-scale investments in the aluminum and coal industries and facilitated by sound economic management, which helped attract foreign direct investment (FDI) and development aid. The country¡¯s strong growth performance has helped reduce poverty, but unevenly, due to its dependence on extractives.
¡°Amid the expected transformational revenue windfall from liquified natural gas exploration, it is critical that Mozambique gradually shifts to a growth model less dependent on extractives,¡± noted Paulo Correa, World Bank Program Leader for Mozambique and lead coordinator for the Mozambique CPF. ¡°Furthermore, it is important that the country works to create jobs for most of its population,¡± he added.
¡°The CPF reflects the country¡¯s new priorities and lessons learned from past engagements,¡± added Fernanda Massarongo Chivulele, World Bank Research Analyst and co-lead in preparing the CPF. ¡°We will invest in fewer, larger, and transformational investments and emphasize the regional dimension of development with a stronger focus on gender, jobs, economic transformation, and governance.¡±
During this new partnership cycle, work will focus on strengthening economic recovery, aligning with the Mozambican government's reform initiative, Pacote de Medidas de Acelera??o da Economia (PAE), launched in August 2022. The reform package, expected to roll out in 2023-2024, aims to foster private sector development by improving the business environment and aligning fiscal policy with development objectives.
¡°We will continue to pursue opportunities to develop robust public-private partnerships in line with the broader government¡¯s reform agenda,¡± noted Carlos Katsuya, International Finance Corporation (IFC) Country Manager for Mozambique. ¡°This new partnership cycle will build on the successful collaboration between the IFC and the International Development Association (Å·ÃÀÈÕb´óƬ), notably through private capital mobilization, which will result in additional investments to those already planned by Å·ÃÀÈÕb´óƬ.¡±
The CPF design followed extensive and broad-based consultations with the government, civil society, and the donor community. It carefully considered the government¡¯s strategic objectives, policies, and programs, lessons learned from the previous partnership cycle, and priorities identified under World Bank diagnostics. Additionally, two critical filters were applied in determining the strategy's priorities: improving resilience and addressing fragility.
