Mozambique
                          Country Partnership Framework FY17-21
                                           Chair Summary*

                                            April 27, 2017

Executive Directors discussed the Joint IDA/IFC/MIGA Country Partnership Framework (CPF)
for Mozambique for FY17- FY21.

Directors noted that the CPF was well aligned with the Government of Mozambique’s (GoM)
own Five-Year Plan and was informed by the findings of the Systematic Country Diagnostic
(SCD), the main lessons from the last Country Partnership Strategy (CPS), and the relevant
stakeholder                                                                      feedback.

Directors noted the serious macroeconomic and fiscal challenges facing Mozambique, in part
due to commodity prices and drought, and expressed concern that the rapid growth rates in the
last two decades did not translate into reduction of poverty. They supported the renewed focus on
inclusive growth through promotion of diversified growth and increased productivity,
investments in human capital, and the enhancement of sustainability and resilience.
Directors welcomed the CPF’s increased focus on sectors such as agriculture, health, education
and rural transport as areas of greatest relevance to the poor, and supported the focus on
provinces with the highest concentrations of poverty. They encouraged the Bank Group to help
harness the potential of regional and south-south cooperation in this regard.
Directors noted that Mozambique remains at high risk of debt distress as a result of the
revelations of previously unreported debt, and the resultant pressures. They welcomed the focus
in the CPF on helping the authorities to develop and adopt a framework for restoring fiscal
sustainability and encouraged close cooperation with the IMF in this effort. They urged the Bank
to take into account the findings of the ongoing international audit, to adjust the CPF program
accordingly, and to update the Board.
Directors welcomed the Bank’s intervention in addressing governance challenges.
Finally, Directors called for stronger collaboration between the Bank, IFC and MIGA and to
explore the role Private Sector Window could play. They also strongly encouraged the Bank
Group to coordinate the interventions closely with other development partners to avoid
fragmentation of support to Mozambique.



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* This summary is not an approved record