Mozambique - Institutional Support Project for Business Environment and Governance (ISP-BEG)

The proposed project is designed to leverage the Bank’s comparative advantage in supporting economic governance reforms in Mozambique. The ISP-BEG responds to a request from the authorities for Bank support to address key binding constraints to the country’s economic growth and development. This will be delivered through support to the Government’s flagship PAE reform agenda, which seeks to unleash the country’s economic growth potential by addressing two key constraints: (i) an unconducive business environment which hampers investment, job creation and growth; and (ii) a public finance management system with weaknesses in key areas which lower the quality of public expenditure and investment and creates mismanagement and corruption risks. It will support the Government in its efforts to implement reforms to accelerate inclusive economic growth by improving economic governance, creating a more conducive environment for the private sector, and hence increasing investor confidence in the economy. The proposed operation has two mutually reinforcing and complementary components, namely: (a) Improving the business environment; and (b) Strengthening the efficiency, accountability and transparency of public expenditure; as well as a third component focusing on (c) Project management.