Mozambique - Country Partnership Framework for FY26-31

Overview & Synopsis

Mozambique stands at a pivotal moment to harness its rich endowment of natural resources and unlock economic opportunities that can lead to more and better jobs for its youthful population. Mozambique’s economic recovery following the 2016-2021 shocks has been modest, with real gross domestic product (GDP) growth averaging just 4.0 percent between 2022 and 2024 - and only 2.5 percent when excluding mining and gas. The recent conclusion of the election process and the country’s ambition to establish its economic independence, as it celebrates fifty years of political sovereignty, offer a window of opportunity to overcome long-standing structural constraints. Against this backdrop, this new Country Partnership Framework (CPF) lays out a five-year program to unlock the transformative power of selected economic corridors in Mozambique to foster jobs creation. This will be achieved by: (i) establishing the infrastructure foundation for jobs through a skilled workforce; (ii) strengthening the business and regulatory framework by improving macro fiscal stability and addressing the drivers of fragility; (iii) mobilizing private sector at scale to create more and better jobs in energy, agribusiness and tourism. The shift from the previous CPF is also characterized by greater selectivity, internal synergies and stronger external partnerships. The overall risk level for the CPF is assessed as substantial, driven primarily by two factors: (i) macroeconomic management challenges - particularly the urgency of addressing current macro-fiscal imbalances, and (ii) fragility risks, including the potential for conflict escalation. Tackling these risks and their root causes is central to the CPF’s design. Implementation risks are also considerable, given governance and capacity limitations across key institutions. To mitigate these risks, the CPF adopts a more selective, cross-sectoral and results-focused approach, aiming to reduce fragmentation and strengthen institutional capacity. Success will be based on an integrated delivery model, where enabling sectors - especially digital, gender, governance - play a catalytic role across outcomes.