Mozambique - Country Partnership Framework for FY26-31 - Annex 4 - Lessons from Past Engagement

Jul 19, 2026

Uploaded by Rowan

Annex 4 distills lessons from implementing the previous Mozambique Country Partnership Framework (CPF) and the Completion and Learning Review to guide the design of the FY26-31 CPF. It emphasizes accelerating jobs, growth, and poverty reduction through coordinated, sector-specific reforms beyond generic business climate measures, with attention to infrastructure, access to finance, market linkages, and opportunities for local MSMEs. The annex also highlights replication factors for flagship programs, the need for sustained macro-fiscal reform momentum, and the importance of multidimensional resilience, disaster risk financing, early warning systems, and community-based approaches in crisis and fragility settings.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

Annex 4 – Lessons from Past Engagement

Rationale for shortening the CPF period and refocusing on jobs

Replicating successful national programs across sectors

Policy reform requirements and sequencing

Building multidimensional resilience across CPF operations

Public Disclosure Authorized Public Disclosure Authorized Annex 4 – Lessons from Past Engagement Lessons from implementing the previous CPF, included in the Completion and Learning Review, have also informed the design of this CPF. Key lessons and planned actions include the following: 1. The need to accelerate growth, job creation, and poverty reduction is the primary justification for shortening the FY23-27 CPF period to regroup WBG’s country engagement. However, delivering on the jobs agenda in Mozambique’s fragmented institutional landscape requires a focused and deliberate approach, coordinating different sectors and stakeholders under a single, consolidated objective. As demonstrated by the CPF implementation experience under Objectives 3 (Strengthen Crisis and Preparedness) and 4 (Enable Green Growth), unlocking jobs and private sector growth demands more than generic business climate reforms, such as those advanced by the DPF series (P176762, P178668). The budget support implementation under the FY23-27 CPF suggests that sustained improvements in the enabling environment must be complemented by sectorspecific reforms in agriculture, tourism, skills, energy, transport, and ICT. Some of the lessons to inform the job agenda under the new CPF (P149620, P166802) indicate that reliable infrastructure, tailored access-to-finance instruments, stronger market linkages, extended credit as well as market access to remote areas, and procurement practices that create opportunities for local firms are all critical for MSME growth and private sector job creation. 2. The success of the flagship Energia para Todos program provides a template for designing and scaling up national programs in other sectors, such as agri-business and tourism. Key ingredients for success and replication from the WBG engagement under this program for the new CPF design and implementation include: formulation of a clear national strategy; well-defined institutional roles and sector coordination; pooling of donor resources; results-based financing; geospatial planning and bulk procurement; and inclusive business models for women-led and small enterprises. Additionally, simplicity of design, clear targets, anda phased approach were instrumental in Mozambique’s context, given its limited implementation capacity. 3. Policy reforms in Mozambique require strong government leadership, a long-term perspective, and sustained reform momentum. The country faces increasing fiscal pressures caused by a large wage bill. Political instability, post-election unrest, and security issues in the north have also slowed down the progress and reduced the effectiveness of the DPF series (P176762; P178668); however, most challenges stem from a worsening macro-fiscal situation. Despite reforms, poverty remains high (around 80 percent in 2025), and the benefits of growth have not been widely shared. The informal sector dominates the labor market, and rural poverty persists due to low agricultural productivity and vulnerability to climate shocks. There is evidence of strengthened fiscal risk and debt management, better SOE oversight, and the operationalization of new financial instruments for MSMEs. However, the full impact on poverty reduction and economic transformation will require sustained effort and further reforms. The FY23 CPF experience offers key policy reform lessons for thenew CPF. The DPF instrument is most effective when complemented by investment projects and technical assistance, especially in digital transformation, skills development, and rural infrastructure. Implementation under CPF Objective 1 (Improved Economic Management) also suggests that structural reforms are most effective when they are pragmatic, sequenced, and supported by hands-on implementation assistance. Anticipating political economy hurdles and high-probability external shocks remains critical to maintaining realism and reform momentum. 18 Official Use Only 4. Building multidimension

FAQs

Why does the annex support shortening the CPF period for Mozambique’s FY23-27 cycle?

The annex states the primary justification is to accelerate growth, job creation, and poverty reduction, regrouping the World Bank Group’s country engagement. It also notes jobs delivery requires a focused approach coordinating sectors and stakeholders under a consolidated objective.

What reforms does the annex say are needed to complement budget support for jobs and private sector growth?

It argues that sustained improvements in the enabling environment must be complemented by sector-specific reforms in agriculture, tourism, skills, energy, transport, and ICT. It also highlights reliable infrastructure, tailored access-to-finance instruments, stronger market linkages, extended credit, and improved market access for remote areas.

Which factors does the annex identify for scaling national flagship programs such as Energia para Todos?

Key ingredients include a clear national strategy, defined institutional roles and sector coordination, pooling donor resources, results-based financing, geospatial planning and bulk procurement, and inclusive business models for women-led and small enterprises. It also underscores simplicity of design, clear targets, and phased implementation given limited capacity.

Jul 19, 2026

Uploaded by Rowan