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Mozambique - Country Assistance Strategy for the period FY 2004 - 2007 (Inglês)

This CAS for FY2004, which supports the Government's poverty reduction strategy, focuses on three areas: (i) improving the investment climate; (ii) expanding service delivery; and (iii) building public-sector capacity and accountability structures. The Bank Group is ideally suited to helping to improve the investment climate, as it can provide full-service policy advice and complementary instruments to support the private sector. For example, the Southern Africa Regional Gas Project, which is being presented to the Board together with this CAS, involves a MIGA guarantee, an IFC equity participation, and an IBRD partial risk guarantee. The CAS will also support several large high-risk developments, because they have demonstrative effect (such as the second National Water Development project, which supports private-sector urban water supply), or because they will have a catalytic impact on growth (such as the Second Roads and Bridges project, which will finance rural roads as well as the Caia bridge over the Zambezi river, and the Beira Railway project, which will open the Zambezi valley and promote regional integration). The Group will also prepare a Rural Development project piloting an integrated approach to rural development. Finally, a series of Poverty Reduction Support Credits (PRSCs), representing about 40 of total IDA financing, will support reforms aiming, among other things, to improve the financial sector, increase labor flexibility, facilitate access to land, increase access to water supply, speed customs clearance, and reduce business registration costs.




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