Mozambique - Economic Governance and Inclusive Growth Program (EGIGP)

Mozambique - Economic Governance and Inclusive Growth Program (EGIGP) – Phase II

Project Summary

Approval Date	15 Dec 2015
Signature Date	16 Dec 2015
Planned Completion Date	31 Jan 2016
Last Disbursement Planned Date	31 Mar 2016
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Commitment	U.A 15,000,000
Status	Completion

Project General Description

The present project is the second phase of the Mozambique Economic Governance and Inclusive Growth Program (EGIGP II). This operation is the second in a programmatic series of three consecutive general budget support (GBS) operations covering 2014-2016. This second phase follows the first one, called "EGIGP I", whose progress in the implementation of the reforms, contributed to improve the business climate and to enhance transparency in the PFM system and the management of extractive industries. EGIGP II will support government to deepen reforms supported under EGIGP I including: (a) measures to expand the integrated one-stop-shop network (e-BAUs, which are already being piloted to support streamlined business procedures); (b) implementation of the 2013 Competition Law, through the adoption of the regulations and establishment of a new competition authority aimed at facilitating market entry and ensuring a level playing field; and (c) adoption of regulations for e-banking and mobile banking services in order to promote inclusion in rural areas. The estimated cost of this operation is USD 247.2 million.

Project Objectives

The goal of EGIGP II is to support government effort in promoting inclusive and sustainable growth by (i) consolidating transparent and accountable PFM and natural resource management frameworks; and (ii) improving the enabling environment for private sector development.

Beneficiaries

The direct beneficiaries of the program include (a) GoM institutions benefiting from an improved PFM framework (including, as direct beneficiaries, entities implementing the reforms, such as the Tribunal Administrativo and IGF); and (b) private sector entities, in particular MSMEs (estimated at 4.5 million), as direct beneficiaries from the supported reforms in the form of increased access to finance and lower market entry barriers. Indirect beneficiaries include (a) the entire public administration through greater public sector efficiency; and (b) the entire Mozambican population (and specially women, youth, and rural communities) through the promotion of inclusive growth, improved natural resource management and a friendlier business environment.

Participating Organization

Funding

African Development Fund

Implementing

Ministère de l’Économie et des Finances

Information

IATI identifier	46002-P-MZ-K00-011
Last Update	01 Feb 2023

Export

Contact Details

Name	GEBRE-SELASSIE Kalayu
Email	k.gebre-selassie@afdb.org

Geographic Location

Country	Mozambique

Coordinates	Location Name
-18.25 35	Mozambique

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 15,000,000

African Development Fund

U.A 15,000,000

Disbursements

Document Type	Language	Document
Evaluation Report	en	PN10796 SR EN
Project Completion Report	en	PR10803 SR EN
Appraisal report	en	Mozambique - Approved Eco Governance and Inclusive Growth Program EGIGP-II Final
Project Completion Report	en	MOZAMBIQUE - PCR - Economic Governance and Inclusive Growth Program EGI...
Project Completion Report	fr	MOZAMBIQUE - RAP - Programme de gouvernance e?conomique et de croissance ...
Appraisal report	fr	Mozambique1- Approuvé Program de gouvernance éco et de croissance inclusive -EGIGP-II Final

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
CPIA Governance rating	Score	2015	3,7	2017	3,18
Priority sector (pro-poor) spending deviation +/- 6% from approved State Budget for the expenditure of the priority sectors (Agriculture, Education, Governance, Health, and Public Works)	%	2015	6	2017	14
Natural Resource Governance Index	/100	2015	45/100	2017	50/100
Time to start a business (number of days)	Day	2015	10	2017	19
Jobs created	Number	2015	300000	2017	277647
Jobs created - of which are for women	Number	2015	90000	2017	66357,633
Percentage of MSMEs contracted in public tenders of small scale	%	2015	90	2017	N/A
Jobs created by enterprises established through the simplified licensing regime	Number	2015	8529	2017	8529
Percentage of conflict cases reviewed by Central Public Ethics Commission over total number of cases and complaints	%	2015	80	2017	64
Percentage of officials submitting asset declarations on time under the law	%	2015	100	2017	N/A
Adoption of Fiscal Transparency Action Plan (FTAP)	None	2015	FTAP adopted	2017	FTAP adopted
Adoption of draft State Owned Enterprise (SOE) legislation	None	2015	Draft SOE legislation adopted	2017	The draft SOE legislation is applicable to public and participated enterprises.
Publication of revised Integrated Investment Plan (IIP)	None	2015	A revised IIP with financial information for projects with identified financing published	2017	IIP manual adopted
Publication of revised Medium-Term Fiscal Framework (MTFF)	None	2015	MTFF methodology revised to incorporate the main criteria to select and assess public investment projects	2017	MTFF approved
Number of state enterprises with published financial statements	Number	2015	8	2017	4
Operationalization of e-SISTAFE procurement functionality	None	2015	e-SISTAFE functionality in use as of 2014	2017	e-SISTAFE functionality designed
Revised public procurement regulation adopted	None	2015	A revised public procurement regulation adopted	2017	Procurement regulation /Decree 15/2010
Progress in the operationalization of a procurement career	None	2015	Profiles of staff working for procurement units defined and approved	2017	N/A
Publication of “Citizens Budget”	None	2015	Publication of Citizens Budget for FY 2015	2017	The Citizens Budget for FY 2014, 2015, and 2016 were published both as draft and final.
Number of service charters published and operationalized at central/province /district levels	Number	2015	24/11/15	2017	No service charters have been adopted
Preparation and publication of 5th and 6th EITI reconciliation report according to new standard	None	2015	5th Report published in 2015, and 6th Report published in 2016	2017	EITI Compliant since 2012 EITI 5th and 6th reports were published in 2014 and 2015, respectively
Share of mineral revenues allocated to local communities and publication of allocations in budget execution reports	%	2015	2,75	2017	2,75
Adoption of draft revised legislation on mining, hydrocarbons	None	2015	Approval by Cabinet of draft revised legislation by end-2015	2017	Draft legislation and consultations
Adoption of fiscal regimes	None	2015	Approval by Cabinet of draft fiscal regimes	2017	Draft legislation and consultations
Number of electronic OSBS (e-BAUs) – one stop business shop	Number	2015	11	2017	11
Number of days required for licensing (in commerce, tourism and industry)	Day	2015	10	2017	19
Adoption of Industrial Licensing Regime	None	2015	Industrial licensing decree approved	2017	The Regulation of Licensing of Industrial Activity approved by Decree no. 22/2014 of 16 May
Adoption of Single Form for business start-up	None	2015	Single form adopted and implemented	2017	Form adopted in 2016 but not yet fully implemented
Adoption of revised MSME Policy	None	2015	Adoption of revised policy	2017	2007-2012 policy revised in August 2017
Adoption of regulations and creation of competition authority	None	2015	Regulations adopted and authority established by end-2015	2017	Competition law
Adoption of draft legislation on private credit bureaus	None	2015	Draft legislation approved by Cabinet	2017	Draft legislation in preparation
Adoption of regulations governing ebanking, including mobile banking	None	2015	Draft regulations adopted by 2015	2017	Draft regulations in preparation
Adoption of a legislation of the establishment of a movable collateral registry	None	2015	Draft legislation adopted in 2016	2017	Draft legislation
Adoption of National Financial Inclusion Strategy	None	2015	National Financial Inclusion Strategy adopted by 2016	2017	Draft Strategy
Number of apprentices recruited by employers each year	Number	2015	3000	2017	2707
Number of apprentices recruited by employers each year - of whom women	Number	2015	900	2017	711,941