Mozambique - Loan to assist in the financing of the Second Poverty Reduction Support Program (PRSL II)

The present intervention focuses on the Poverty Reduction Support Loan II (PRSL). In its quest for poverty reduction in Mozambique, the Bank is following up on its PRSL I with the second Poverty Reduction Support Loan II. The rationale is to deepen the results achieved by the earlier programme. Another aim is to improve economic and financial accountability by enhancing the external and internal audit functions and the local government framework for decentralized financial management within districts. The project is expected to strengthen the capacity of the Supreme Audit Institution and the District Consultative Councils to effectively perform their roles. In the context of the Mozambican decentralization framework, districts are meant to be the ultimate operational level of government. Building sustainable accountability mechanisms requires strengthening institutions both at national and district levels. The project has two major components: Improved Government’s Financial Accountability through Enhanced External and Internal Audit Functions and Strengthened local government framework for developed financial management within districts.