FSDMoc Övergångsstöd FSDMoc Short-term support - FSDMoc Phase II Stöd till stiftelsen "Financial Sector Deepening Mocambique" för arbete med ökad finansiell inkludering för de fattigaste, inklusive tillgång till mikrokrediter och mobila tjänster. Support to the Financial Sector Deepening Mocambique foundation, for increased financial inclusion in Mozambique, including for the poorest and most vulnerable people. The intermediate outcomes of the intervention are:

a) In terms of technical and strategic innovation capacity, the FSDMoç is fully capable of bringing about market-driven changes to financial services that are going to be of benefit to individuals, households and SMSEs; b) FSDMoç becomes a fully autonomous body based on a foundation legal model and thus is capable of ensuring its own operational and financial sustainability; c) Development activities in the future in Mozambique will include actions that will reduce climate change risk and improve resilience through the use of financial inclusion solutions.

The main outputs of the intervention include:
• A capability development plan that enables FSDMoç to execute its strategic plan;
• Advanced monitoring and data management systems capable, among other things, of measuring the effect of FI on poverty;
• Strategic direction on strategy provided by the Board of Patrons and Board of Directors
• Adoption, by a new Board of Directors, of all policies and developed operational instruments and management systems;
• New financial inclusions solutions in place by private and public sectors through the Enterprise Development and Assistance Fund
• FI models to support savings groups
• Expansion of financial literacy program (numbers and competencies yet to be determined)
• A model for green finance in the FI domain
• An FI-and- GIS based model to address climate change modelling so that FI can be applied to adaptation
• Toolkits for insurance regulators to improve security and service levels in climate-induced disasters
• A gender toolkit for better integrating gender and FI
• A model that identifies the interplay between variables that ling financial, social and economic services to poverty reduction via FI
• A framework for developing a higher level of value-added coordination in the FI domain in Mozambique.

A few of the key inputs:
• Sida Financial support in place to enable the FSDMoç to transition to a foundation model;
• Support by KfW, SDC and others for the installation of Boards
• Active collaboration of Central Bank and MEF
• A cadre of well-trained executives and staff at FSDMoç with a proven history of FI success
• Active collaboration by private sector firms and GoM agencies to support FI in Mozambique

The components of the intervention, as described in the Concept Note, are:

1. Development of FSDMoç Institutional Capacity & Program management: Capacity development to ensure the sustainability and effectiveness of the FSDMoç as institution.

FSDMoç as a national and local entity needs to invest in management and organizational development capacity during this 10-month intervention, to ensure a smooth establishment of the proposed governance structure and ensure that FSDMoç has the capability to execute its strategic, business and operational or annual plans and thus meet its expected performance levels. In addition, the institutional support from the Embassy will respond to the recommendations that came out of Sidas Final Evaluation Report (2016-2020). The short-term intervention is also aligned to the draft FSDMoç Business Plan.

2. Innovation and development of financial solutions to promote the acceleration of financial inclusion to assist in and enable poverty reduction and the market development systems of SMEs. The main sub-components:

FSDMoç has been working through different FI research and innovation interventions aiming to reduce geographic and social asymmetries by promoting access to basic services with impact on vulnerability of its targeted groups. The main approach to achievng this impact has been through digital financial services within different strategic sectors and across provinces, with special focus on those currently less included or underserved. Past evaluations have indicated that FSDMoç has had success in poverty alleviation, mainly in the form of job creation. This component will continue to support partnerships with the private and public sector with funding to innovation. The Concept Note provides a list of interventions that should be prioritized. 

3. Using Financial Inclusion to resolve issues with the implementation of climate resilience and adaptation (particularly by including inclusive insurance and climate finance) and this reduce the effects associated with climate change on the poor and on market disruption.

The main sub-components are:

- Through FI mechanisms, strengthen resilience and adaptation capacity of rural youth, women, and farmers against the impact of extreme climatic events of drought and excessive rainfall;

- Enhance the capacity of the vulnerable groups to cope with major climate shocks, by creating access to proactive financial protection mechanisms (such as insurance) that manage risks against climate-related disasters; and

- Promote the acceleration of green finance adoption in the country.



4. Cross-cutting themes (a partial list).

The main sub-components are: Financial Education and Literacy. This sub-component has, as a main goal, to increase access to financial education and digital literacy to ensure that financial consumers are informed, knowledgeable and protected. Reduction of the Gender Gap in DFS. This sub-component has two main goals: (i) Development of a Gender Toolkit which is a practical guideline on how to integrate gender on the design of DFS products; and (ii) Support the Central Bank of Mozambique on development of policies to support womens digital financial inclusion with the aim to reduce the gender gap on access and usage of Digital Financial Services (DFS). Contribute to key FI policy initiatives and undertake advocacy work with Key Stakeholders for Financial Inclusion. The key result areas for this sub-component in the coming year concerns providing technical assistance to government agencies for two key policies that need to be prepared in 2022 because previous versions end in 2022. . A) the National Financial Inclusion Strategy 2016-2022 (ENIF) and the Financial sector development strategy 2013 -2022. FSDMoç is positioning itself as a key actor that that will play an active role on the development of the next strategy.

 

A fifth component deals with Program Management, Technical Assistance and Monitoring and Evaluation.

That component is meant to cover the costs of overhead such as support staff salaries and fixed operating costs such as software license renewals. It also covers the estimated cost of technical assistance to FSDMoç on the transitioning and capacity development. Monitoring costs and audits are also included in the component and are budgeted accordingly.