Mozambique: World Bank Support for Social Protection

The World Bank has approved a grant of US$167.5 million to support the Mozambican government's Social Protection and Economic Resilience Project.

According to a press release from the World Bank, the project addresses the need to build a social protection system focused on the poorest families to effectively improve living conditions and increase resilience to shocks.

Of the project's total amount, US$41 million is provided by a multi-donor trust fund composed of the United Kingdom, Sweden, and the Netherlands, with the rest coming from the World Bank's International Development Association (IDA).

The World Bank's representative for Mozambique, Idah Pswarayi-Riddihough, stated: "This is a much-needed operation for Mozambique, given the country's vulnerability to conflict, extreme weather events, Covid-19, and other factors".

Further details were given by the World Bank's task team leader, Edmundo Murrugarra, who noted that "Mozambique has made progress in building a social protection system, and it is time to enhance its impact on the poor and vulnerable in the most efficient way. This is why this operation brings together the three largest social protection programs to improve synergies and help create a critical pathway out of extreme poverty".

Co-task team leader Jordi Gallego-Ayala stressed the need for the project to respond to crises, stating that "this operation will allow the sector access to emergency financing to swiftly respond to climate, health, and economic shocks. Social protection as part of an emergency response, known as adaptive social protection, helps mitigate the impacts of shocks, and strengthens households' resilience".

The project falls within the government's National Strategy for Basic Social Security 2016/24 and its Five Year Program for 2020/24.

Established in 1960, IDA helps the world's poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people's lives. IDA is one of the largest sources of assistance for the world's 74 poorest countries, 39 of which are in Africa. Since its launch, it has provided US$458 billion to 114 countries. Annual commitments have averaged about US$29 billion over the last three years, with about 70 per cent going to Africa.

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