VaMOZ Digital! Mozambique remains one of the bottom ten countries in the world in terms of human development, aggravated by increasing inequality in recent years, including significant gender differences, Gini-coefficient rose to 0.56 (2014/15) from 0.47 (2008/9), placing Mozambique among the most unequal countries in Sub-Saharan Africa, substantial disparities between North and south and urban versus rural areas. Despite its remarkably young age structure, its potential to contribute to the country¿s socio and economic development is far from being reached. The country is one of the poorest and most unequal in the world and rapid population growth is exerting extra pressure on job creation and service delivery. In order to unleash the full potential of the youth, Mozambique needs to kick-start its digital transformation. Although the country has made some visible progress over the last years, there are still major constraints such as little investment in connectivity and weak capacities of the Government, fragile legal and regulatory digital framework and corresponding enforcement, lack of digital literacy, gender and urban-rural divides, low affordability of broadband-enabled devices, low education levels and low electrification rate. Furthermore, Mozambique¿s digital ecosystem for enterprises is dynamic, but the opportunities for start-ups are limited due to financial and business enabling environment constraints. The COVID-19-related acceleration in digitalization makes it clear that it is crucial to close the digital divide with least developed countries (LDCs) since harnessing digital technologies is crucial for sustainable development and inclusive growth. The experience indicates that when appropriately applied, digital technologies can improve lives by empowering youth, women and girls, enhancing democratic governance and transparency, and boosting productivity and job creation. The EU will not only mainstream digital technologies in all its interventions in Mozambique over the coming years, as recommended by the study commissioned in 2021, but will also actively contribute to Mozambique¿s digital transformation through support to the emergence of digital technology focusing on policy and regulatory frameworks, connectivity, e-services, digital skills and entrepreneurship. Digital skills and entrepreneurship are engines for social and economic development and thus crucial for the youth's entry into the job market. To this end, the Overall Objective (Impact) of this action contributes to Mozambique¿s inclusive growth by facilitating digital transformation. In particular, it aims to improve efficiency, effectiveness and accessibility of digital services supported by an appropriate policy and regulatory framework for digital transformation across sectors gender responsive; moreover, it intends to stimulate innovation and digital entrepreneurship for youth (women and men), enabled by the appropriate skills, with a focus on those living in vulnerable situations. This action is fully in line with priority area 2 ¿Growing Youth¿, as defined in the 2021-2027 Multi-Annual Indicative Programme for Mozambique. The action will contribute to achieving the 2030 Agenda for Sustainable Development, more specifically SDG 4 (Quality Education), 5 (Gender Equality), 8 (Decent work and Economic growth), 9 (Industry, Innovation and Infrastructure) and 11 (Sustainable cities and communities).