Project Summary

Project General Description

The proposed intervention focuses on the Mozambique component of the Multi-country COVID19 Response Support Program (MCRSP) in Madagascar, Malawi, Mozambique, and Sao Tome and Principe (MMMS countries). This is an African Development Fund (ADF) and Transition Support Facility grants and a loan totaling UA 100.4 million for all four (4) countries. The MMMS countries have been combined into one group to ensure efficiency in the processing of the CRBS support under the Southern Africa Regional Development and Business Delivery Office (RDGS), in order to fast track the Bank’s assistance to RMCs. They have similar characteristics and needs in dealing with the pandemic, adopting a common approach and response across the four countries. Except for STP (that falls within RDGS), their plans align with the SADC strategic priorities for the health sector. As at 6 July 2020, Mozambique had 987 confirmed cases of COVID-19, with 8 deaths and 256 patients having recovered. The onset of the COVID-19 pandemic has caused a sudden stop to Mozambique’s tepid economic recovery. Indeed, the country has been recovering from a series of financial and natural shocks – including the collapse of FDI and currency depreciation in 2015-2016, related to the uncovering of $2 billion of previously hidden debts, and cyclones Idai and Kenneth in 2019, which caused an estimated $3.4 billion of damages. The proposed operation is designed as Crisis Response Budget Support (CRBS) and will be implemented over one year from July 2020. The program consists of three broad mutually reinforcing components (i) Protecting labour force productivity by strengthening diagnosis capacity and public health response to COVID-19; (ii) Safeguarding incomes and livelihoods through enhanced social protection systems; (iii) Strengthening economic resilience and protecting jobs against COVID-19 Shocks.

Project Objectives

The goal of the proposed program is to support Mozambique’s efforts in fighting the COVID-19 pandemic and protecting lives, livelihoods and jobs from the socioeconomic impact of the crisis. In line with GoM’s crisis response plan, the overall operational objective of the proposed operation is to strengthen the country’s healthcare and social protection systems while supporting agriculture and the private sector to weather the effects of the crisis and preserve productive capacity, employment and livelihoods.

Beneficiaries

The citizens of Mozambique at large will benefit from the effective implementation of the COVID-19 response plan and containment of the spread of the virus. Beneficiary groups include: the general population benefitting from a scale-up of detection and isolation capacity; poor and vulnerable households (especially women) that will benefit from the expansion of social protection; and small businesses and private sector that will receive cash relief from the fiscal and financial measures supported under the program.

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