The World Bank Banco Mundial...

The World BankBanco MundialMoçambique

http://www.worldbank.orghttp://www.worldbank.org/mozambique

Por um Mundo L ivre de PobrezaBanco MundialPor um mundo livre de pobreza

Contact: Rafael Saú[email protected]


The World Bank Group inMozambique ................................... 1

The World Bank Group’s AssistanceStrategy and Support to PARPA/PRSP and State Budget ................... 2

IDA in Mozambique........................ 3

Mozambique: IDA and IBRDOperations ....................................... 4

IDA Support to Infrastructure ........ 5

IDA Support for Education andHealth .............................................. 6

IDA Support to Public SectorModernization andDecentralization ............................. 7

IDA Support for Private Sector andIndustrial Development .................. 8

IDA Support for Agriculture andRural Development ......................... 9

Regional IDA Activities inMozambique ................................. 10

IFC in Mozambique ....................... 11

MIGA in Mozambique .................. 12

The World BankBanco Mundial - Moçambique

Centro de Informação PúblicaAv. Kenneth Kaunda, 1224 - Maputo

Tel.: (+258 -1) 482300

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Centro de Informação PúblicaAv. Kenneth Kaunda, 1224 - MaputoTel.: (+258 -1) 482300

www.worldbank.orgwww.worldbank.org/mozambique




WBfolder12pp 8/10/05, 5:07 PM1

Banco MundialPor um Mundo Livre de Pobreza

Centro de Informação Pública 1224, Av. Kenneth Kaunda - Maputo http://www.worldbank.orghttp://www.worldbank.org/mozambique

The World Bank Group in Mozambique

1

From post-war reconstruction programs in the

1980s, through a comprehensive country support

strategy in the early 1990s, to a poverty reduc-

tion strategy and a focus on development assis-

tance, harmonization and budget support, today

the World Bank Group has placed poverty alle-

viation, development effectiveness and results at

the core of its work in Mozambique.

The World Bank Group’s mission is to fight pov-

erty and improve living standards in developing

countries. It is among the world’s leading devel-

opment institutions. It provides loans and other

financial services, policy advice, technical assis-

tance, and knowledge sharing services.

In 1984 Mozambique became a member of the

World Bank Group, which is composed of five in-

stitutions:

• IBRD - International Bank for Reconstruction

and Development

• IDA - International Development Association

• IFC - International Finance Corporation

• MIGA - Multilateral Investment Guarantee

Agency (Mozambique joined in 1994)

• ICSID - International Centre for Settlement of In-

vestment Disputes (Mozambique joined in 1995)

Of these institutions, Mozambique has made use

of the services of IBRD, IDA, IFC and MIGA:

• IBRD in Mozambique provides partial risk

guarantees for investment.

• IDA provides concessional loans and grants

to support government and private sector ini-

tiatives to reduce poverty and promote eco-

nomic growth.

• IFC promotes private sector growth, support-

ing enterprises that have limited access to

capital.

• MIGA promotes foreign direct investment by

providing guarantees to investors against non-

commercial risks, such as expropriation and war.

The expression “World Bank” refers to IDA and

IBRD only, while “World Bank Group” includes the

above five institutions.



The World Bank Group’s Assistance Strategy and Support toPARPA/PRSP and the State Budget

2

The World Bank Group updates periodically its

strategy to support Mozambique’s efforts in fight-

ing poverty, which are outlined in government´s

Poverty Reduction Strategy (Plano de Acção para

Redução da Pobreza Absoluta, PARPA). After consul-

tations with government, civil society and the

donor community, in 2003 the World Bank Group

prepared a Country Assistance Strategy (CAS) for

2004-7. This strategy has three pillars around

which activities are organized, namely:

• Improving the investment climate in order to

promote broad-based sustainable growth

• Expanding service delivery and the provision

of basic services in order to accelerate human

development

• Building capacity and accountability to im-

prove expenditure management, provision of

services, and the regulation of private sector

activities.

World Bank Group support consists of lending and

non-lending activities for each of the three CAS pil-

lars. The implementation of the CAS supports the

Government’s PARPA and is in close collaboration

with the efforts of many development partners,

including the EU, DFID, CIDA, DANIDA, the Neth-

erlands, NORAD, USAID, SIDA, the IMF and the UN.

In 2004, the World Bank joined a group of do-

nors, now known as the Group of 17 or G17, that

directly funds Mozambique’s state budget. The

G17 use Government procedures and processes

in accordance with government operational

cycles as the basis for direct budget support. The

Government reviews progress of the PARPA

through a Performance Assessment Framework

(PAF), which is the main instrument for policy

reform. The second national PARPA will cover the

period 2006-10.

The use of government procedures and processes

for direct budget support makes donor assistance

more predictable, transparent, harmonized and

aligned with Mozambique’s priorities and plan-

ning and budgeting cycles. Budget support is al-

located to the PARPA’s priority sectors, on which

the Government spends about 65% of its total

resources. In Mozambique, about half of govern-

ment revenue comes from donors, via budgetary

and other forms of support.

IDA, IFC and MIGA activities in Mozambique

are consistent with and supportive of the policy

and investment goals of the PARPA, and the

broad objectives, programs and processes of

other donors.



IDA in Mozambique

Current IDA Lending, by Sector

$553 million53%

$208 million20%

$163 million16%

$74 million7%

$40 million4%

Infrastructure

Education and Health

Public Sector Modernizationand Decentralization

Private Sector and IndustrialDevelopment

Agriculture, RuralDevelopment and NaturalResources

3

IDA non-lending activities include studies and tech-

nical assistance. Studies provide the basis for the

IDA’s diagnosis of development challenges and

prospects. They are prepared in collaboration with

the Government, donors and other stakeholders,

and are disseminated and discussed on comple-

tion. The resources for these studies come from

IDA’s administrative budget, often complemented

by support from other donors.

Within the framework of the CAS, IDA undertakes

studies to assist the Government in analyzing the

overall economy and public expenditure, as well

as sector-specific studies. Between 2004 and

2007, IDA has or will undertake such studies as

these:

• Country Economic Memorandum

• Infrastructure Assessment

• Rural Development Strategy

• Private Sector Competitiveness Report

• Legal and Judicial Assessment

• Country Status Report on Health

• Labor Market and Technical and Vocational

Education

• HIV/AIDS Retrospective Report

• Water Management Study

IDA lending supports Government development

projects through either concessional credits (no-

interest loans) or grants. IDA has made 52 cred-

its or grants to Mozambique since 1985 for a to-

tal value of $2,816 million. As of June 2005, the

value of the 20 on-going IDA financial support

(credit and grants) was $1,038 million, distributed

by sector as follows:

• Infrastructure - $553 million (or 53% of the

total)

• Education and Health - $208 million (20%)

• Public Sector Modernization and Decentrali-

zation - $163 million (16%)

• Private Sector and Industrial Development -

$74 million (7%)

• Agriculture, Rural Development and Natural

Resources - $40 million (4%)



Mozambique: IDA and IBRD Operations (Credits, Grants, Guarantees), 1985-2005(as of June 30, 2005)

Operations Effective Amount Disbursed Sector StatusDates ($m) ($m)

Rehabilitation Project (Cr. 16100) 1985-89 45.0 55.6 Economic Reform* ClosedSecond Rehabilitation Project (Cr. 18410) 1987-91 70.0 72.7 Economic Reform* ClosedEnergy Technical Assistance and Rehabilitation (Cr. 18060) 1987-94 20.0 20.0 Energy ClosedEducation I (Cr. 19070) 1988-95 15.9 16.3 Education ClosedUrban Rehabilitation (Cr.19490) 1989-96 60.0 53.7 Urban ClosedHealth and Nutrition (Cr. 19890) 1989-97 27.0 30.2 Health ClosedThird Rehabilitation Project (Cr. 24210) 1989-94 90.0 91.2 Infrastructure ClosedUrban Household Energy (Cr. 20330) 1990-98 22.0 21.3 Energy ClosedBeira Corridor (Cr. 20650) 1990-97 40.0 30.2 Transport ClosedEconomic and Financial Management (Cr. 20660) 1990-97 21.0 22.9 Economic Reform* ClosedIndustrial Enterprise Restructuring (Cr. 20810) 1990-99 50.1 50.1 Finance ClosedSmall and Medium Enterprises (Cr. 20820) 1990-97 32.0 32.0 Finance ClosedAgricultural Rehabilitation and Development (Cr. 21750) 1991-00 15.4 6.3 Agriculture ClosedEducation II (Cr. 22000) 1991-99 53.7 53.7 Education ClosedAgricultural Services Rehabilitation and Development (Cr. 23370) 1992-98 35.0 17.0 Agriculture ClosedEconomic Recovery Credit (Cr. 23840) 1992-96 180.0 188.3 Economic Reform* ClosedFirst Roads and Coastal Shipping (Cr. 23740) 1992-00 74.3 73.5 Transport ClosedCapacity Building: Human Resources Development (Cr. 24360) 1993-99 48.6 44.0 Education ClosedMaputo Corridor Revitalization Technical Assistance (Cr. 24540) 1993-00 9.3 5.8 Transport ClosedRural Rehabilitation (Cr. 24790) 1993-98 20.0 19.8 Agriculture/Rural ClosedFood Security Capacity Building (Cr. 24870) 1994-00 6.3 4.0 Public ClosedCapacity Building: Public Sector and Legal Institutions (Cr. 24370) 1994-01 15.5 12.3 Law and Public ClosedSecond Roads and Coastal Shipping (Cr. 25990) 1994-98 188.0 167.3 Transport ClosedSecond Economic Recovery Credit (Cr. 26280) 1994-97 200.0 208.3 Economic Reform* ClosedLocal Government Reform and Engineering (Cr. 25300) 1994-00 23.2 13.6 Public Sector ClosedFinancial Sector Capacity Building (Cr. 26070) 1994-99 9.0 8.5 Finance ClosedGas Engineering (Cr. 26290) 1994-03 30.0 25.1 Energy ClosedHealth Sector Recovery Program (Cr. 27880) 1996-03 98.7 71.7 Health ClosedThird Economic Recovery Credit (N0100) 1997-98 100.0 94.3 Economic Reform* ClosedNational Water I (Cr. 30390) 1998-05 36.0 28.86 Water ActiveEconomic Management and Reforms (H0020) 1998-99 150.0 148.9 Economic Reform* ClosedAgriculture Public Expenditure (PROAGRI) (Cr. Cr. 31710) 1999-05 30.0 21.02 Agriculture ActiveEducation Sector Strategic Program (CR. 31720) 1999-06 71.0 51.39 Education ActiveNational Water II and Suplemental Credit (Cr. 32471) 2000/04-07 90.0 35.27 Water ActiveRailways and Port Restructuring (Cr. 32880) 2000-05 100.0 67.99 Transport ActiveEnterprise Development (Cr. 33170) 2000-05 26.0 19.6 Finance ActiveFlood Emergency Recovery (Cr. 33360) 2000-01 30.0 28.5 Agriculture ClosedCoastal and Marine Biodiversity Management (Cr. 33660) 2001-07 5.6 2.29 Agriculture ActiveMineral Resources Management Capacity Building(Cr. 34860) 2001-06 18.0 14.61 Mining ActiveMunicipal Development (Cr. 35490) 2001-06 33.6 16.18 Public Sector ActiveRoads and Bridges Management and Maintenance (Cr. 35500) 2002-06 162.0 60.55 Transport ActiveCommunications Sector Reform (Cr. 35770) 2002-06 14.9 6.71 Communication ActiveHigher Education (Cr. 36090) 2002-07 60.0 29.62 Education ActiveEconomic Mgmt and Private Sector Adjustment (Cr. 37090) 2002-04 120.0 134.1 Private Sector ClosedHIV/AIDS Response (MAP) (Gr. H0300) 2003-08 55.0 10.06 Health ActivePublic Sector Reform (Gr. H0240) 2003-06 25.6 1.94 Public Sector ActiveEnergy Reform and Access (Cr. 38190) 2004-07 40.3 1.8 Energy ActiveDecentralized Planning and Finance (Gr. H0670) 2004-08 42.0 7.68 Public Sector ActiveSouthern Africa Regional Gas (B1200) (IBRD guarantee) 2004 20.0 Energy ActiveSouthern Africa Regional Gas (B1190) (IBRD guarantee) 2004 10.0 Energy ActivePoverty Reduction Support Credit (PRSC) (Cr. 39500) 2004-05 60.0 60.0 Economic Reform ActiveRegional HIV/AIDS Treatment Acceleration Program (TAP) (Gr. H1040) 2004-07 20.8 3.6 Health ActiveBeira Railway (Cr. 39910) 2005-10 110.0 0.0 Transport Active

Total 2815.8 1984.5

* Adjustment Lending

4



IDA Support to Infrastructure

5

IDA’s seven projects in the infrastructure sector

seek to improve the infrastructure and delivery

of water, energy, roads, communications, railways

and ports.

• The Energy Reform and Access Project ($40 mil-

lion IDA Credit) aims to increase access to

energy in un- and under-served peri-urban

and rural areas, and encourage private sector

participation in the national electricity

company’s (EDM) distribution and supply

business. It supports development and capac-

ity building in institutions under the Ministry

of Energy.

• The Roads and Bridges Management Program I

($162 million IDA Credit) has as its objective

to improve roads and bridges, connect all pro-

vincial capitals to the trunk road network,

strengthen sector policies, and enhance road

sector management. It also establishes

mechanisms to secure the flow of funds for

roads maintenance, and improves road trans-

port safety.

• The Railway and Ports Restructuring Project ($100

million IDA Credit) supports the restructur-

ing of three port-rail systems and the increase

of freight traffic with neighboring countries.

It also supports the efforts of the national rail-

way company (CFM) to become more efficient,

and encourages concessions and commercial

activities. It will strengthen policy formulation

in the Ministry of Transport and Communica-

tions, and encourage private company partici-

pation in the sector, as well as carry out reha-

bilitation work in tertiary ports.

• The Beira Railway Project ($110 million IDA

Credit) aims to render rail transport cost ef-

fective and efficient for freight and passenger

traffic in the Zambezi Valley and beyond.

Through a concessionaire, it will rehabilitate

the 600 km Sena Line and improve the 300

km Machipanda Line. The project will also

strengthen institutional capacity of the

Mozambican Railways Company, CFM.

• The National Water Development Project I ($36 mil-

lion IDA Credit) strengthens organizations in

the water and sanitation sector, and prepares

for private sector management of the water

supply systems of five cities – Maputo, Beira,

Quelimane, Nampula and Pemba. The project

supports water sector organizations to provide

sustainable water and sanitation services to an

increasing proportion of the community, and

to manage water resources sustainably.

• The National Water Development Project II ($75

million IDA Credit and a $15 million Supple-

mental IDA Credit) complements the devel-

opment objectives of the above project. It

promotes greater private sector participation

in the provision of water services in the five

cities, encourages the use of commercial prin-

ciples of cost recovery, and supports the cre-

ation of a water sector regulator for urban

water provision.

• The Communication Sector Reform Project ($15 mil-

lion IDA Credit) supports improvements to ac-

cess to and the quality of communications ser-

vices by creating a competitive environment

with private participation in the telecommuni-

cations, postal and air transport sectors.

In addition to the above seven on-going infra-

structure projects, the Roads and Bridges Manage-

ment Project II is under preparation. This project

will build on the experience and lessons learned

from the first phase Roads and Bridges Project

but will have a stronger focus on rural secondary

and tertiary roads.



IDA Support for Education and Health

6

Support by IDA to education and health aims to

improve the access to and quality of basic, voca-

tional and higher education, and to strengthen

efforts to combat sexually transmitted diseases

and HIV/AIDS. It is comprised of four projects, as

follows:

• The Education Sector Strategic Program (ESSP)

($71 million IDA Credit) aims to enhance ac-

cess to and the quality of basic education,

focusing on gender equity and improving in-

formal and special education. The ESSP pro-

motes cultural diversity and values. It also

supports strengthening of the institutional

capacity of the Ministry of Education.

• The Higher Education Project ($60 million IDA

Credit) supports the expansion of higher edu-

cation institutions and the reduction of con-

straints to access to education by tackling

barriers such as location, socio-economic

situation and gender. It also promotes the

quality of the teaching-learning process and

the curriculum.

• The HIV/AIDS Response Project (MAP) ($55 mil-

lion IDA Grant) finances the implementation

of the government’s multi-sectoral national

strategic plan to combat sexually transmitted

diseases and HIV/AIDS. It supports a national

campaign of prevention, palliative care and

awareness to slow the rate of infection with HIV/

AIDS and other sexually transmitted diseases.

• The HIV/AIDS Treatment Acceleration Project (TAP)

($22 million IDA Grant) is the first World Bank-

funded project to focus primarily on HIV/AIDS

treatment in Africa. The project scales-up

ongoing HIV/AIDS treatment initiatives using

a combination of public/private/NGO partner-

ships to serve vulnerable groups, while assist-

ing the government to strengthen its health

care system to better address the challenges

of HIV/AIDS treatment.

In addition to these four projects, a fifth - the Tech-

nical and Vocational Education and Training Project - is

under preparation. This will tackle the issues of

quality and relevance of the technical and voca-

tional curricula, and access and equity to such

education, as well as its sustainability. Two IDA-

financed studies, Mozambique Skills Development: Is-

sues and Options (2004) and Labor Market and Techni-

cal and Vocational Education (2005), contributed to

the preparation of this project.



IDA Support to Public Sector Modernization andDecentralization

7

IDA support to public sector modernization and

decentralization seeks to improve governance

through decentralization and to improve account-

ability and management of public funds and ac-

cess to public goods and services. There are cur-

rently four projects in this sector.

• The Public Sector Reform Project ($26 million IDA

Grant) seeks to upgrade the quality of public

services, reduce “red-tape”, and improve access

to public services. It will help improve gover-

nance by restructuring and improving resource

allocation and promoting the efficient use and

accountability of public resources.

• The Municipal Development Project ($35 million

IDA Credit) aims to strengthen the institu-

tional capacity of municipal governments and

pilot a municipal grant mechanism to finance

investments, thereby laying the foundation for

an improved inter-governmental fiscal sys-

tem.

• The Decentralized Planning and Financing Project

($42 million IDA Grant) supports improve-

ments to the institutional capacity of district

administrations. It strengthens community

participation and empowerment, and pro-

vides budgetary support to improve basic in-

frastructure and social services.

• The Poverty Reduction Support Credit (PRSC 1)

($60 million IDA Credit) supports the Govern-

ment’s poverty reduction strategy through

providing direct support to the 2004 national

budget. Among other things, these funds help

strengthen public sector capacity and public

financial management, as well as improve the

investment climate, expand infrastructure,

and strengthen health, education and water

services.

Four other projects are under preparation in this

sector. A second Poverty Reduction Support Credit

(PRSC II) will continue World Bank Group sup-

port to the Government of Mozambique’s PARPA.

This 2005 project is the next in a series of annual

IDA credits to support the PARPA. The Legal Sec-

tor Capacity Building Project will support legal train-

ing, and assist in the reform of the court system.

Its preparation is based on a Bank-prepared Jus-

tice Sector Assessment for Mozambique (2005), as well

as a justice sector vision study funded by

DANIDA. A Financial Sector Technical Assistance Project

will also include support to the legal sector. Fi-

nally, the Maputo Urban Development Project will build

on the lessons of the National Water, Municipal

Development, and Decentralized Planning and Fi-

nancing Projects, with an investment focus in

Maputo.



IDA Support for Private Sector and Industrial Development

8

IDA support to the private sector and to indus-

trial development in Mozambique aims to in-

crease private sector participation in economic

growth and to create a better environment for

industrial development. Support to this sector is

through three IDA funded projects. IFC and MIGA

also actively support private sector development

in Mozambique.

• The Enterprise Development Project ($26 million IDA

Credit) aims to broaden the base of private par-

ticipation in Mozambique’s economic growth.

It helps firms improve their technical capaci-

ties and access financial services, and enhances

the ability of private and public institutions to

deliver business support services.

• The Mineral Resources Management Capacity Build-

ing Project ($18 million IDA Credit) encourages

private investment in mining, increases fis-

cal revenue from mining, strengthens environ-

mental and social management in the min-

ing sector, and improves the capacity of min-

ing-related government institutions.

• The Mozambique-Southern Africa Regional Gas Project

promotes the development and export of

Mozambique’s natural gas resources in an envi-

ronmentally sustainable manner. SASOL, a

South African petrochemicals firm, and the

Mozambique National Hydrocarbon Company

(ENH) are developing gas fields and the associ-

ated processing facilities. A 865 km pipeline has

been built between gas fields in Inhambane

Province and SASOL’s Petrochemical complex

at Secunda in South Africa. The pipeline has five

off-take points in Mozambique (at Ressano

Garcia/Maputo, Magude, Macarratane, Chigubo/

Funhalouro and Temane) to provide for domes-

tic demand. The project is supported by IFC eq-

uity participation ($10 million), a MIGA debt/

equity guarantee ($121 million), and an IBRD

enclave partial risk guarantee ($30 million).



IDA support to agriculture, rural development and

natural resources seeks to improve the management

of the sector and of coastal and marine resources,

strengthen food security, and promote rural devel-

opment. It is composed of support for two projects.

• The Coastal and Marine Biodiversity Management

Project ($5.6 IDA Credit and a $4.1 million Grant

from the Global Environment Fund) promotes

the sustainable economic development of

coastal resources. The project integrates con-

servation with regional development and

strengthens the protection of key coastal and

marine conservation areas, initiating conser-

vation-oriented community activities in those

areas through a spatial development plan.

• The Agricultural Sector Expenditure Program,

PROAGRI, ($30 million IDA Credit) aims to

9improve public expenditure in the agriculture

sector, secure sustainable and equitable sec-

tor growth and improve food security, while

protecting the environment through a forestry

and wildlife management program.

The Transfrontier Conservation Areas Project, which is

under preparation, will build on the experience

and lessons learned from a related $5 million

Global Environment Fund project that closed in

June 2003. It will increase environmentally sus-

tainable tourism investment and development,

and local participation and incomes from tour-

ism in five Transfrontier Conservation Areas. A

Smallholder Agriculture Development Project, also un-

der preparation, will focus on agriculture market

and technology issues in selected areas of high

potential for smallholder production.

IDA Support for Agriculture and Rural Development



10The World Bank currently has five major regional

projects involving Mozambique with an additional

three projects under preparation. In addition, the

Bank is providing institutional development grants

that support the Southern African Development

Community (SADC) as a whole. The Bank is also

involved in several regional non-lending activities made

of analytic and advisory activities.

Ongoing Regional Projects

South Africa Power Pool (SAPP) Development

and Mozambique-Malawi Power Interconnection

Projects are key to the NEPAD agenda and par-

ticularly important in the context of the loom-

ing power shortages in the region. The projects

aim to develop an efficient regional power mar-

ket, in order to supply stable electricity at lower

prices in the SADC.

Southern Africa Development Community Agri-

cultural Program is part of the Bank’s contribu-

tion to the NEPAD Comprehensive African Agri-

cultural Development Programme (CAADP).

Regional HIV/AIDS Treatment Acceleration Pro-

gram (TAP) pilots the strengthening of the

country’s capacity to scale up programs provid-

ing effective, affordable, and equitable care and

treatment for people with HIV/AIDS.

Regional IDA Activities In Mozambique

Groundwater and Drought Management Project,

co-funded by the Global Environment Fund

(GEF), is aimed at finding strategic uses of

groundwater resources in the transboundary

Limpopo Basin and drought prone areas of the

SADC region.

Projects Under Preparation

Regional Communications Infrastructure - in this

project, the Bank would contribute to the financ-

ing of a number of infrastructure subprojects,

including a submarine cable along the east coast

of Africa.

Southwest Indian Ocean Fisheries Project would

involve nine countries with coasts on the South-

west Indian Ocean. Through the Global Environ-

ment Fund and other partners, the project will

support preparation of a “data atlas” of existing

fisheries information, protection, fisheries re-

source management, regional monitoring and

surveillance of fishing.

Western Indian Ocean Marine Highway Devel-

opment and Coastal and Marine Contamina-

tion and Prevention Project will increase the

safety and efficiency of navigation and reduce

the risk of ship-based environmental contami-

nation.



IFC in Mozambique

Mozambique has been a member of the Interna-

tional Finance Corporation since 1984. As of June

2005, the IFC committed portfolio totals $154 mil-

lion. It consists of fourteen projects in agri-

business, the hotel industry, banking and gen-

eral manufacturing. Six of these projects are in

the small- and medium-sized enterprise (SME)

sector. IFC’s main initiative in Mozambique has

been the Mozal aluminum smelter. IFC support

(in the amount of $120 million) for the first phase

of Mozal in 1997 was crucial for financing the $1.3

billion project and was IFC’s largest single invest-

ment globally at the time. Mozal entered produc-

tion in June 2000 and its resulting output more

than doubled Mozambique’s exports in 2001 from

1999 levels. IFC provided $25 million for the sec-

ond phase of Mozal in 2001. IFC has further sup-

ported Mozal’s HIV/AIDS programs and is assist-

ing the company with an SME linkage program

to expand its sourcing to local firms.

In 2004, IFC committed an $18 million investment

to finance part of the government’s equity in the

Pande/Temane Gas pipeline, along with IBRD and

MIGA support, and approved a $3 million contri-

bution to a $12 million SME financing and tech-

nical assistance facility. In the same year, IFC Ad-

visory Services was the lead advisor to the Gov-

ernment of Mozambique in the selection of the

coal developer for the Moatize Project. This

project, awarded to the Brazilian mining company

CVRD- Companhia Vale do Rio Doce, will prob-

ably be the largest investment in Mozambique in

the medium to long term. Given its dimension,

multiple components and location, the Moatize

Project is expected to have a massive positive

impact on poverty reduction in the Zambezi Val-

ley, one of the most populated regions in

Mozambique and, also one of the poorest.

Project Name and Sector Loan Equity Quasi Loan/ Fiscal StatusAmount Amount Equity Year(million $) (million $) Amount

(million $)

BIM - Financial Services 0.27 1998 Active

BMM - Finance & Insurance 0.29 2000/2003 Active

ENH - Equity Finance - Oil, Gas, Mining (SASOL) 18.50 2004 Active

MOZAL - Oil, Gas, Mining (Billiton) 46.37 58.50 1997/2001 Active

Maragra Sugar - Food and Beverages 10.30 1999 Active

SEF Ausmoz - Agriculture and Forestry 0.72 2000 Active

SEF CPZ - Food and Beveragesl 1.00 1997 Active

SEF Cabo Caju - Food and Beverages 0.58 2000 Active

Grand Prix Autobody - Industrial and Consumer Products 0.34 2001 Active

Novo Banco - Financial Services 0.20 2003 Active

Total Exposure 59.71 19.06 58.50

11

IFC´s Current Portfolio



MIGA in Mozambique

Mozambique has been a member of the Mulilateral

Investment Guarantee Authority since 1994, and

is MIGA’s fourth largest client country and the larg-

est in Africa. MIGA guarantees have facilitated an

estimated $2.8 billion of direct foreign investment

in Mozambique. MIGA has nine projects in

Project Name Initial Exposure(Gross, $m) FY Status

Mozal S.A.R.L 40.0 1998 Active

Salvintur - Sociedade de Investimentos 2.9 1999 Active

Motraco - Mozambique Transmission Company S.A.R.L 69.4 2000 Active

Companhia de Sena S.A.R.L 65.0 2001 Active

Companhia de Sena S.A.R.L 4.5 2001 Closed

Motorcare Lda 2.0 2002 Active

Maputo Port Development Company S.A.R.L 7.1 2002 Active

Mozambique/South Africa: Oil and Gas 72.0 2003 Active

Mozambique: Infrastructure 13.8 2003 Active

Mozambique: Mining 20.8 2003 Active

Auroz Limitada 0.5 2004 Closed

Sasol Petroleum Temane Ltd and Republic of Mozambique 113.5 2004 ActivePipeline Investment Company

Total Exposure 411.5

Current Exposure as of June 30, 2005 307.9

agribusiness, infrastructure, manufacturing, oil and

gas, services and tourism. Clients include Mozal,

Companhia de Sena (Marromeu sugar), Sasol (gas

pipeline), Moma Mining (KfW), and Maputo port.

MIGA also provides technical assistance to the

Center for Investment Promotion (CPI).

12

MIGA´s Portfolio

The World BankBanco MundialMoçambique


Por um Mundo L ivre de PobrezaBanco MundialPor um mundo livre de pobreza

Contact: Rafael Saú[email protected]


The World Bank Group inMozambique ................................... 1

The World Bank Group’s AssistanceStrategy and Support to PARPA/PRSP and State Budget ................... 2

IDA in Mozambique........................ 3

Mozambique: IDA and IBRDOperations ....................................... 4

IDA Support to Infrastructure ........ 5

IDA Support for Education andHealth .............................................. 6

IDA Support to Public SectorModernization andDecentralization ............................. 7

IDA Support for Private Sector andIndustrial Development .................. 8

IDA Support for Agriculture andRural Development ......................... 9

Regional IDA Activities inMozambique ................................. 10

IFC in Mozambique ....................... 11

MIGA in Mozambique .................. 12


Centro de Informação PúblicaAv. Kenneth Kaunda, 1224 - Maputo

Tel.: (+258 -1) 482300

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