Since 1984, the World Bank has been providing development assistance to Mozambique, designing assistance based on the country’s needs and priorities, from economic stabilization in the 1980s, to post-war reconstruction in the early 1990s, to a comprehensive support strategy in the late 1990s, to the current Country Partnership Strategy (CPS) for FY2012-2015, which involves close collaboration with the government, development partners, and civil society to ensure sustainable and inclusive growth.
Like the Africa Regional Strategy, the CPS has two cross-cutting pillars and a foundation:
- Competitiveness and employment. In view of structural issues, and growth and poverty trends, the Bank looks to help improve the regulatory environment; prioritize investments through spatial planning; enhance agricultural productivity and employment in potential growth sectors; improve provision of transport, water, energy, and other infrastructure; and promote an educated, skilled, and healthy workforce.
- Vulnerability and resilience. Given the country’s susceptibility to idiosyncratic and exogenous shocks, the Bank aims to help improve health services for the vulnerable; strengthen social protection; and encourage climate change adaptation and reduce vulnerability to natural disasters.
- Governance and public sector capacity. Key to achieving the country’s development objectives is improved public financial management, particularly at the sector and local levels; improved citizen participation in service delivery monitoring; improved capacity to manage renewable and non-renewable natural resources.
In addition, the CPS aims to mainstream gender, social accountability, and nutrition in the portfolio. On gender, the Bank will build on an already solid track record of addressing gender equality during project preparation and implementation. There is broad scope to introduce social accountability mechanisms, particularly in projects seeking to improve service delivery. A parallel strategy to incorporate social accountability is currently under discussion. Similarly, with chronic malnutrition among the worst in the world, nutrition-related activities are planned for active and pipeline operations, as appropriate.
World Bank Lending
The World Bank, through its International Development Association (IDA), has invested over $4 billion in projects and programs in Mozambique to date, and its current portfolio is comprised of 25 projects with an overall net commitment of approximately $1.7 billion and distributed across all major sectors, including budget support, transport infrastructure, energy, water and sanitation, agriculture, business environment and small-medium enterprise (SME) support, spatial planning, decentralization, governance and municipal development, education, health, safety nets, and climate change. In addition, the World Bank administers 37 Trust Funded-operations for a total amount of $147 million (most of which complementary to the IDA-funded operations). Finally, and in a final stage of preparation are four new Development Policy Operations for an estimated total amount of $285 million.
World Bank Non-Lending
Mozambique benefits from an important number of analytic work and technical assistance that are prepared in collaboration with the Mozambique government, development partners, and other stakeholders, and are widely disseminated once completed. The financing for these studies is from the World Bank’s administrative budget as well as from other development partners. In addition to country-specific activities, the World Bank offers a range of regional and global knowledge products relevant to Mozambique, including the Doing Business annual survey and report, and the Africa Development Indicators report that provides macroeconomic, sectoral, and social indicators of 53 countries. Recently the World Bank launched a Development Dialogue Series, set to be its knowledge sharing platform through which the Bank experts will interact with local institutions and the society in general as it disseminates but also prepares its knowledge products.
The International Finance Corporation, IFC
Mozambique also benefits from the International Finance Corporation’s support in Africa in the areas of tourism, mining and energy, and financial services. This support encompasses the cross-cutting issues of mobilization of both local and foreign direct investment to key sectors of the economy; improving private sector access to finance; developing infrastructure; improving the investment climate; increasing linkages between large investments and the local economy; increasing private sector awareness of HIV/AIDS issues; and supporting private sector involvement in the water sector. IFC’s main investments have been in the Mozal aluminum smelter near Maputo, and the Mozambique-South Africa gas pipeline.
The Multilateral Investment Guarantee Agency, MIGA
Mozambique is one of MIGA's largest host countries. MIGA cooperated with IDA in relation to the previous IDA-funded Enterprise Development Project (PoDE) by providing assistance to Mozambique’s Investment Promotion Center. MIGA is working on several applications for guarantee coverage of investments, and its newest program in Mozambique is a small investment guarantee program for investments of less than $5 million.
Last Updated: Apr 10, 2014