World Bank Supports Mozambique to Improve Financial ServicesOn Sept. 29, 2015, the Government of Mozambique (GoM)’s Financial Sector Development Strategy got the support of a U.S. $25 million credit from the World Bank.

Funneled through the World Bank Programmatic Financial Sector Development Policy Operation (DPO), this support aims at promoting greater financial inclusion and market stability in Mozambique, which also helps develop business and alleviate poverty.

In order to reinforce financial stability, the World Bank Programmatic Financial Sector Development Policy Operation (DPO) supports improvements in the bank’s regulations and supervision, safety net and crisis preparedness frameworks.

The operation supports reforms to promote financial inclusion by focusing on improving credit reporting systems, branchless banking and mobile banking, consumer protection, payment systems and insolvency frameworks

Moreover, by supporting reforms in capital markets and expanding the insurance and pension coverage, the operation helps promote long-term financial markets.

According to the World Bank, if effectively regulated and supervised, improved financial services would spur economic growth, reduce income inequality and help lift households out of poverty.

Through the funding program, DPO directly supports the GoM’s Financial Sector Development Strategy to broaden financial inclusion, enhance banking regulation and supervision, strengthen the banking safety net and crisis management framework and improve government securities markets.

“This DPO series has three main objectives: increase financial inclusion, improve financial stability, and strengthen long term financial markets in Mozambique,” said Mark R. Lundell, World Bank country director for Mozambique.

Mazen Bouri, the World Bank co-Task team leader for the DPO, said, “The GoM recognizes the importance of financial services development to reduce poverty and improve the business environment.”

In line with the World Bank Group’s Country Partnership Strategy for Mozambique (2012-2015), this program is dedicated to the twin goals of eradicating absolute poverty and improving shared prosperity in the world.

Shengyu Wang

Sources: World Bank 1, World Bank 2, World Bank 3, First Initiative
Photo: Pixabay

The World Bank’s International Development Association (IDA) is not a bank in the traditional sense, but rather, a unique financial institution whose main objective is to reduce poverty and support development for those living in the bottom 40 percent. This goal can be achieved by offering concessional loans and grants to the world’s poorest countries, benefitting aspects like global education.

On July 24th, a second round of funding was approved and given to the Republic of Mozambique’s Education Sector Support Project (ESSP) in the amount of $50 million, reports the World Bank. Today, Mozambique is one of the first countries to receive a grant under the new funding model implemented by Global Partnerships, in which funds will be controlled through ESSP.

These grants are important initiatives in supporting ESSP to improve their access, quality and equity of education, which has grown tremendously from 67 to 82 percent between 2009 to 2014. Despite their increased registration of students within schools, challenges are present when it comes to the learning outcomes within primary education.

Education in Mozambique faces a number of challenges including low retention, a sub-optimal learning environment and overall management at a school-level.

According to the World Bank, the objectives of ESSP include “improving school readiness (through expanding access to Early Childhood Development programs); enhancing learning environment, through the implementation of a curriculum reform and additional teacher training; and enhancing local management and governance through increased supervision by districts, enhanced capacity of school councils, as well as the targeting of resources to achieve learning for all, with a focus on the most vulnerable.”

Currently, the World Bank’s efforts are grounded in sharing knowledge with countries around the world, focusing on seeing results in developing countries, reforming every aspect of their work to further improve communication and ensuring open access to this information through accessible and free websites and opportunities for discussion.

– Nikki Schaffer

Sources: World Bank 1, World Bank 2
Photo: ADPP