Mozambique Second Institutions and Economic Transformation DPF

The development objectives of the Second Institutions and Economic Transformation Development Policy Financing for Mozambique are to: (i) strengthen budget institutions and responsibility; (ii) improve the investment climate and financial access; and (iii) promote resilient and low-carbon growth potential. These three pillars complement and reinforce each other. First, greater fiscal responsibility will improve investor confidence and support private sector-led growth. Second, an improved business environment that attracts investment and facilitates access to credit will help strengthen the fiscal position. Third, Mozambique’s emboldened climate change commitments and improved financial position of public utilities will reassure investors, enabling access to climate finance and supporting resilient and low-carbon development path.