Mozambique - Financial Sector DPO II

closed

Closed

The development objective of the Second Programmatic Financial Sector Development Policy Operation (FSDPO II) Project for Mozambique is to reinforce financial stability, increase access to finance by households and firms, and enhance the development of long-term financial markets. The three pillars of the operation are: (i) financial stability; (ii) financial inclusion; (iii) long-term financial markets. Actions to promote financial inclusion focus on: improving access to finance in underserved areas and sectors (including rural areas) through e-money and agent banking, improving the credit reporting system (to promote access to credit for smaller enterprises and lower income individuals in particular), and enhancing the transparency of financial information and consumer protection and strengthening payment systems. The measures to promote financial inclusion, in particular through agent banking and mobile financial services also have significant potential to bridge the regional imbalances in access to finance mentioned earlier. The three main risks to this operation are related to: (i) implementation capacity; (ii) macroeconomic management, with a high current account (CA) deficit, rising public external debt to finance infrastructure investment, and a more expansionary fiscal policy; and (iii) sustainability of commitment to reform after the general elections of 2014.

FY17 - Financial Sector,FY17 - Industry, Trade and Services

World Bank Group

Project

Bridge, Government