Mozambique Investment Climate Program - IFC Mozambique Investment Climate Program - IFC The intervention intends to support the Government of Mozambique - through the IFC (the International Finance Cooperation a part of the World Bank Group) - in building a foundation for private-sector-driven diversification through the creation of an appropriate incentive framework based upon a clear, transparent and predictable business and investment climate, and facilitating private sector investment and operations in priority economic sectors.

IFC has an office in Maputo, Mozambique and the follow-up with this program will be done directly with it. The office in Maputo receives administrative and technical backstopping from the regional office in Johannesburg and from headquarters in Washington DC. All agreements of programs in the region, including the agreement for this program, are signed off by the regional office in Johannesburg. The disbursments are made to the multi-donor trust fund in Johannesburg but are handled by the local office.

In Phase 1 2018-2022 the Program aims to achieve at least US$4 million in administrative cost savings for the private sector, especially SMEs. Private sector savings will mainly derive from the overall reduction in aggregate time and costs for businesses to comply with government regulations related to property registration and business inspections. Phase 1 is co-financed by Swiss state organisation for economic cooperation SECO.

In Phase 2 2019-2023 the Program will aim to support generation and retention of investment - foreign and domestic - by helping remove barriers to entry and operations and actively promoting investments in key economic sectors. This coupled with market reforms will lead to more competitive sectors and higher productivity. Ultimately this is expected to help create job opportunities, and encourage the development of a more diversified economy. 

The Program will support crosscutting improvements to the investment climate, as guided by the DB methodology; through the streamlining and automation of property registration procedures; by helping develop the insolvency regulatory and institutional framework; and introducing good regulatory practices to improve the delivery of business inspections; Identify and promote specific investment opportunities and remove private sector challenges identified in key sectors; Identify issues that affect market functioning and support market reforms that enhance the development impact of private sector participation; Improve transparency, access to information and the predictability and efficiency of public administration services in key reform areas.

The Swedish funding for the program will be 30.000.000 SEK over a 4 year implementation period 2018-2023. SECOs contribution is 14.500.00 SEK for phase 1, and the Swedish funding would finance the financing gap of 41% for phase 1 and 100% of phase 2. The funding vehicle is a Multi-Donor Trust Fund (MDTF) for which IFC will charge a standard administration fee of 5%. The program is a technical assistance program with the main share of the funding going to staff costs, short- and longterm consultants. There will be no forwarding of funds. Once the funding from Sweden is secured the IFC will finalise MoUs with relevant GoM authorities. Insatsen syftar till att stödja Mocambiques regerings ambition att förbättra affärsklimatet i landet. Insatsen implementeras med teknisk stöd från IFC (International Finance Cooperation en del av Världsbanksgruppen) under 2018-2023. Ett förbättrat affärsklimat är centralt för att kunna etablera grunden för en privatsektor driven diversifiering av den mocambikiska ekonomin genom att skapa ett klarare, mer transparent och förutsägbart affärs- och investeringsklimat, samt för att facilitera investeringar i viktiga sektorer identifierade genom analytiskt arbete. 

IFC har kontor i Maputo, Mozambique och uppföljningen av insatsen kommer att ske direkt på plats. Kontoret i Maputo får administrativt och tekniskt stöd från sitt regionala kontor i Johannesburg samt sitt kontor i Washington. Alla avtal i regionen inklusive det gällande denna insats kommer att skrivas med kontoret i Johannesburg. Utbetalningarna sker till den givargemensamma fonden i Johannesburg men hanteras av det lokala kontoret.

Programmet är uppdelat i två faser. Fas 1 implementeras under 2018-2022 och kommer till att börja med innehålla arbete med tre specifika affärsklimatsreformer (inspektioner, fastighetsregistrering, samt insolvens/konkurser) med fokus på att effektivsera processer, reformer kopplade till Doing Business-indexet, samt sektorspecifika reformer som kommer väljas ut efter analytiskt arbete (Country Private Sector Diagnostics). Fas 1 kommer även bidra till en studie kring upplevda hinder i affärsklimatet både inom formell och informell sektor, en s.k. "Enterprise Survey", som inte genomförts sedan 2009 i Mocambique. Fas 1 är samfinansierad av SECO (den Schweiziska statliga organisationen för ekonomiskt samarbete). Programmet förväntas uppnå 4 MUSD i insparade administrativa kostnader för privata sektorn.

Fas 2 kommer programmeras i mer detalj under första halvan av 2019 och påbörja sin implementering tidigast under andra halvan av 2019 till och med 2023. I denna fas kommer arbetet fokusera på facilitering och bibehållande av både utländska och inhemska investeringar genom att adressera existerande hinder, investeringsfrämjande kopplade till specifika sektorer, reformarbete för att öka konkurrenskraften och produktiviteten i utvalda sektorer.

Finansieringen från Sverige för programmet är 30.000.000 SEK över 4 år 2018-2023. SECO bidrar med 14.500.000 SEK till fas 1 och Sveriges finansiering kommer täcka resterande 41% av finansieringsbehovet, samt 100% av aktiviteterna i fas 2. Finansieringen kommer kanaliseras via en givargemensam fond som IFC kommer att etablera för ändamålet, och vars administrationskostnader kommer att uppgå till 5%. Programmet är ett tekniskt stöd där det största andelen av budgeten kommer att gå till löner och kostnader för kort- och långtidskonsulter. Ingen vidareförmedling av medel kommer att ske. När Sveriges finansiering är beslutad kommer IFC att slutföra och underteckna samförståndsavtal med relevanta partners för genomförandet i Mocambique. The intervention intends to support the Government of Mozambique - through the IFC - in building a foundation for private-sector-driven diversification through the creation of an appropriate incentive framework based upon a clear, transparent and predictable business and investment climate, and facilitating private sector investment and operations in priority economic sectors.
In Phase 1 the Project aims to achieve at least 4 MUSD in administrative cost savings for the private sector, especially SMEs. Private sector savings will mainly derive from the overall reduction in aggregate time and costs for businesses to comply with government regulations related to property registration and business inspections.
In Phase 2 the Project will aim to support generation and retention of investment - foreign and domestic - by helping remove barriers to entry and operations and actively promoting investments in key economic sectors. This coupled with market reforms will lead to more competitive sectors and higher productivity. Ultimately this is expected to help create jobs opportunities, and encourage the development of a more diversified economy. 
More specifically, the overall Project will:
Support crosscutting improvements to the investment climate, as guided by the DB methodology; through the streamlining and automation of property registration procedures; by helping develop the insolvency regulatory and institutional framework; and introducing good regulatory practices to improve the delivery of business inspections; Identify and promote specific investment opportunities and remove private sector challenges identified in key sectors; Identify issues that affect market functioning and support market reforms that enhance the development impact of private sector participation; Improve transparency, access to information and the predictability and efficiency of public administration services in key reform areas.