COUNTRY PARTNERSHIP FRAMEWORK FOR MOZAMBIQUE - FY26-31 - Unlocking economic opportunities for more and better jobs

Jul 19, 2026

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Mozambique is at a pivotal moment to convert natural-resource wealth and strategic geography into inclusive economic opportunity, especially for youth. Despite modest post-shock recovery, structural constraints—macrofiscal imbalances, weak governance, poor infrastructure, low human capital, and conflict in Cabo Delgado—have limited job creation and worsened poverty and inequality. The framework sets a five-year program (FY26–31) to unlock selected economic corridors, build infrastructure for skilled employment, strengthen business and regulatory conditions, and mobilize private investment in energy, agribusiness, and tourism.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

Overview and development context

Jobs challenge and macroeconomic recovery

Strategic opportunity and economic corridors

CPF program approach (FY26–31)

Priority objectives and delivery mechanisms

Selectivity filters and embedded crosscutting themes

Outcomes and initial results

Outcome 1: Improved macro-fiscal stability

Public Disclosure Authorized Public Disclosure Authorized COUNTRY PARTNERSHIP FRAMEWORK FOR MOZAMBIQUE FY2 6–31 WBG Strategy: Unlocking economic opportunities for more and better jobs Mozambique stands at a pivotal moment to harness its rich endowment of natural resources and unlock economic opportunities that can lead to more and betterjobs for its youthful population. With its strategic geographic location in the Indian ocean coastline and opportunity to serve several of its landlocked neighbors, the country is endowed with significant natural assets, including one of the world’s largest offshore natural-gas reserves, large mineral deposits, vast arable land, considerable hydropower potential, and rich biodiversity. However, despite this wealth of natural assets and strategic advantages, Mozambique has struggled to translate its potential into broad-based prosperity, leaving much of its population—particularly its youth—without access to meaningful economic opportunities. Mozambique’s economic recovery following the 2016–2021 shocks has been modest, with real GDP growth averaging just 4.0 percent between 2022 and 2024—and only 2.5 percent when excluding mining and gas. Civil unrest after the 2024 elections further disrupted economic activity, while a combination of short-term pressures and deep-rooted structural challenges—such as macro-fiscal imbalances, weak governance, poor infrastructure, low human capital, and persistent conflict in Cabo Delgado—continue to constrain growth. GDP per capita remains below 2016 levels, marking a “lost decade”relative to regional peers. Poverty (81 percent when using the international US$3-per-day line) and inequality (Gini of 0.50) are among the highest in the world. The poverty-growth elasticity is low (around-0.3, compared to-1.1 in Sub-Saharan Africa) mostly due to low agricultural productivity and spatial disparities. As a result, Mozambique’s economy is struggling to generate sufficient employment for its young and growing population, with 500,000 new entrants into the labor market each year and only 30,000 formal jobs created annually. The recent conclusion of the election process and the country’s ambition to establish its economic independence, as it celebrates fifty years of political sovereignty, offer a window of opportunity to overcome long-standing structural constraints. At the heart of this transformation are the revitalization of economic corridors that connect people, markets, and industries within the country and across Southern Africa. The country has long relied on its strategic geographic location to serve as a logistics gateway for transport and energy benefiting neighboring countriesalong threemultimodal West-East regional corridors: the Nacala Corridor in the North; the Beira Corridor in the center; and the Maputo Corridor in the South. In addition , a North-South Corridor is emerging as a vital backbone for national integration and inclusive growth, and linking the country’s northern, central, and southern regions, connecting the country from top to bottom and unlocking development potential in some of Mozambique’s most underserved areas. Against this backdrop, this new CPFlaysouta five-yearprogram to unlock the transformativepower of selected economic corridorsin Mozambique to foster jobs creation. This will be achieved by: (i) establishing the infrastructure foundation for jobs through a skilled workforce; (ii) strengthening the business and regulatory framework by improving macro fiscal stability and addressing the drivers of fragility; (iii) mobilizing private sector at scale to create more and better jobs in energy, agribusiness and tourism. The decision to proceed with a new CPF while the previous was only halfway through implementation (FY23-27) stemmed fromthe resurgenceof fragility risks during recent post-election crisis, combined with the opportunity created by a new political cycle. Lessons from the current CPF have highlighted the importa

FAQs

What is the main goal of the Mozambique Country Partnership Framework for FY26–31?

Unlocking the transformative power of selected economic corridors to foster jobs creation and enable more and better economic opportunities.

Why does the framework emphasize a renewed approach despite an ongoing previous CPF?

It reflects renewed fragility risks after the post-election crisis and the opportunity from a new political cycle, with lessons pointing to selective, high-impact sector engagement.

Which sectors and mechanisms are targeted to increase employment?

The plan aims to mobilize private sector investment at scale, focusing on energy, agribusiness, and tourism, supported by an infrastructure foundation for skilled work and improved business and regulatory conditions.

Jul 19, 2026

Upload by Ezra