Mozambique - Economic Governance and Inclusive Growth Program (EGIGP) – Phase I

The present project is the first phase of the Mozambique Economic Governance and Inclusive Growth Program (EGIGP). This initiative is designed as a programmatic series of three consecutive general budget support (GBS) operations covering fiscal years 2014, 2015, and 2016, with a total indicative financing envelope of UA 39.335 million for the three phases. As the Bank’s sixth GBS operation in Mozambique, the EGIGP responds to a request from GoM to support its reform agenda laid down in the Poverty Reduction Action Plan (PARP, Programa de Ação para a Redução da Pobreza) 2011-2014, recently extended to 2015), the Medium-Term Fiscal Framework 2014-2016 and a series of longer-term sectoral strategies. The first phase of EGIGP (EGIGP I) is presented for Board approval following the satisfactory implementation of a set of prior actions. In addition, the EGIGP I presents the multi-year framework and anticipates indicative triggers for the second and third phases (EGIGP II and III) based on the GoM’s reform agenda. Its implementation will contribute to the strengthening of GoM institutional capacity in the areas of PFM reform, fiscal transparency (including SOEs and public investment management), and private and financial sector development, though support for key institutional transformations.