Mozambique: Financial Inclusion and Stability Project

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The objective of the Financial Inclusion and Stability Project for Mozambique is to increase financial inclusion among underserved groups and MSMEs, while strengthening the overall financial safety net. There are three components to the project, the first component being increasing usage of transaction accounts and access to finance for MSMEs. The objective of this component is to support increased usage of transaction accounts (bank or mobile money accounts) in remote and underserved areas. This component includes three subcomponents: digitization of government payments, promoting financial education and awareness, and enabling environment for access to credit for MSMEs. The second component is the strengthening financial safety net. The objective of this component is to increase the capacity of the deposit insurance scheme to protect individual small depositors and contribute to overall financial stability. This component includes two subcomponents: deposit insurance capitalization and upgrading supervisory technology and deepening capital markets. Finally, the third component is the project management, monitoring and evaluation. Drawing from the experience of the FSTAP, the project will establish a dedicated PIU within the Ministry of Economy and Finance comprised of individuals that can work full time on the project’s implementation. This will entail a project coordinator, a procurement officer, a financial management officer, and a monitoring and evaluation officer. To ensure proper coordination and supervision, a Project Steering Committee (PSC) will be established, composed of the principle stakeholders. The PSC will be chaired by MEF and comprised of representatives of BOM, DGF, Ministry of Industry and Commerce, Ministry of Education, INAS, and ISSM. Section four expands on implementation arrangements.