Mozambique - Multi-Country Covid-19 Response Support Program (MCRSP)

The proposed intervention focuses on the Mozambique component of the Multi-country COVID19 Response Support Program (MCRSP) in Madagascar, Malawi, Mozambique, and Sao Tome and Principe (MMMS countries). This is an African Development Fund (ADF) and Transition Support Facility grants and a loan totaling UA 100.4 million for all four (4) countries. The MMMS countries have been combined into one group to ensure efficiency in the processing of the CRBS support under the Southern Africa Regional Development and Business Delivery Office (RDGS), in order to fast track the Bank’s assistance to RMCs. They have similar characteristics and needs in dealing with the pandemic, adopting a common approach and response across the four countries. Except for STP (that falls within RDGS), their plans align with the SADC strategic priorities for the health sector. As at 6 July 2020, Mozambique had 987 confirmed cases of COVID-19, with 8 deaths and 256 patients having recovered. The onset of the COVID-19 pandemic has caused a sudden stop to Mozambique’s tepid economic recovery. Indeed, the country has been recovering from a series of financial and natural shocks – including the collapse of FDI and currency depreciation in 2015-2016, related to the uncovering of $2 billion of previously hidden debts, and cyclones Idai and Kenneth in 2019, which caused an estimated $3.4 billion of damages. The proposed operation is designed as Crisis Response Budget Support (CRBS) and will be implemented over one year from July 2020. The program consists of three broad mutually reinforcing components (i) Protecting labour force productivity by strengthening diagnosis capacity and public health response to COVID-19; (ii) Safeguarding incomes and livelihoods through enhanced social protection systems; (iii) Strengthening economic resilience and protecting jobs against COVID-19 Shocks.