Mozambique - Economic Acceleration and Governance Support Programme, Phase I (EAGSP)

The proposed projet aims to support the Government in its efforts to accelerate economic growth by creating a more enabling environment for economic recovery and green growth through wide-ranging green economy opportunities (GEO) and climate-friendly business environment enhancements together with a strengthening of the quality of PFM. To this end it will support reforms in the private sector, thereby attracting private investments, especially in the agro-industrial sector, fostering economic and social development. The Economic Acceleration and Governance Support Programme (EAGSP) will further contribute to reducing poverty by making PFM systems more efficient and improving the business environment. It will ultimately indirectly benefit all citizens of Mozambique, as an improved business environment will lead to growth and job creation, and a strengthened public procurement system and internal and external controls framework will lead to improved public expenditure quality and better public services. The key envisaged outcomes are: (1) FATF ESAAMLG follow-up report on Mozambique showing reduction in noncompliance with recommendations reduced to 5 in 2024 (from 10 in 2021); (2) Share of public contract value awarded through direct procurement reduced to 30% in 2024 (from 44.7% in 2020); and (3) CPIA Debt Policy indicator score increases to 2.50 in 2024 (from 2.00 in 2021). The reforms planned under the proposed programme are based on two mutually reinforcing and complementary components. Component 1 focuses on improving the enabling environment for the private sector with a view to economic recovery and green growth. Component 2 concerns on strengthening the efficiency, accountability and transparency of public spending.