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The project Mozambique - Financial Sector DPO is now in the pipeline. To see more information, see the project information in the World Bank project database The development objective of the First Programmatic Financial Sector Development Policy Operation (FSDPO) 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. This DPO directly contributes to the realization of the Mozambique financial sector development strategy (MFSDS) and the country partnership strategy (CPS) for FY2012-15 by focusing on three pillars: (i) financial stability; (ii) financial inclusion; and (iii) long-term financial markets. The three main risks to this operation are related to: (i) implementation capacity; (ii) macroeconomic management, with a high current account deficit, rising public external debt to finance infrastructure investment, and a more expansionary fiscal policy; and (iii) sustainability of commitment to reform in the run-up to general elections in 2014. Related mitigating measures for these risks have been put in place. FSD matters not only for economic growth but also for poverty and income inequality. The government recognizes the importance of FSD to reduce poverty and improve the business environment.

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Annual Report 2014-2015