According to the Bank’s website, the objective of this project is to enhance human resource management, wage bill sustainability, and strengthen public financial management for improved service delivery.

The Program will support the Government's Public Sector Reform Strategy currently being updated for the 2025-2034 period and the Public Financial Management Strategy, also being updated, with a 5-year program designed around three proposed Results Areas (RA) as follows:

Results Area 1 - Improved Human Resource Management and Payroll Control. This results area supports institutional coordination and capacity building; and HRM reforms to enhance the distribution and performance of civil servants - focusing on priority sectors.

Results Area 2 - Policy Reforms to Contain the Wage bill and Improve HR incentives. This results area focuses on revising the policy framework for career progression and allowances.

Results Area 3 - Strengthen public financial management. This results area seeks to improve expenditure efficiency, helping government utilize its fiscal space more effectively, including enhanced capacity for pay policy design, wage bill forecasting and management, as well as more productive and impactful investments.

The Program’s environmental risk is rated Low, as it finances institutional reforms rather than civil works, with no expected impacts from land disturbance, construction, pollution, or biodiversity; potential risks from large-scale digitalization (energy use, e-waste) and OHS during capacity building are considered low and manageable through ICT asset management and standard procedures, and the rating will be revisited at appraisal.

The social risk is rated Moderate given Mozambique’s context of high poverty, inequality, governance fragility, and unrest, and indirect risks from reforms to pay policy, workforce distribution, biometric attendance, career management, and digital HR systems that may raise concerns of fairness, resistance to change, inequitable access (especially for women and underserved regions), digital exclusion, and data privacy; labor-related risks (working conditions, workload, contractual inconsistencies, SEA/SH, OHS during travel) for PIU staff, civil servants, and consultants are manageable under ESS2 with clear contracting, Codes of Conduct with SEA/SH provisions, worker GRM, targeted training, and strong communication, inclusive design, and robust grievance mechanisms aligned with ESF standards.

Total Project Cost: US$ 217.00 million
IDA Grant: US$ 150.00 million

CONTACT POINT - World Bank

Task Team Leader: Zubair Khurshid Bhatti
Title: Lead Public Sector Specialist
Email: zbhatti@worldbank.org

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The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint