Mozambique - Financial Inclusion and Stability Project

Overview & Synopsis

Ratings of the Mozambique: Financial Inclusion and Stability Project for Mozambique were as follows: outcome was satisfactory, Bank performance was satisfactory, and M&E quality was substantial. Investments in new institutions and systems such as collateral registries, credit guarantee schemes, and deposit insurance require long-term engagement beyond a typical project cycle, close coordination among stakeholders, and a mix of interventions to ensure sustainability, with performance-based conditions (PBCs) paired with technical assistance proving effective and collaboration with partners improving efficiency. Ensuring beneficiaries of social cash transfers can access digital payments is essential, but future efforts should consider more efficient, sustainable options than procuring phones directly, such as subsidizing handset costs and channeling subsidies to beneficiaries to purchase locally and accelerate delivery. Digitizing payments to lifelong learning facilitators requires high-level and sustained commitment to address decentralized financial management capacity constraints, streamline contracting approvals, and ensure timely budget availability. Scaling financial education is challenging; future approaches should build in-house capacity in social protection agencies to deliver tailored curricula at lower cost and consider partnerships with financial institutions, including training agents to provide basic financial education, to enhance reach and sustainability.