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Publication(World Bank, Washington, DC, 2021-11-25) Delgado, Christopher ; Costa, Carlos ; Ricaldi, FedericaThis book focuses on entry points for creation of better jobs through agricultural value chains and lays out the policy implications, using cassava, cashew, and plantation forestry as examples. It is based on case studies carried out in 2018-2020 by the World Bank Jobs Group as part of the multi-stakeholder Let’s Work Program in Mozambique. Let’s Work is a global partnership encompassing over 25 private sector organizations, international financial institutions, multilateral development banks, and bilateral donors focused on supporting private sector-led job growth. The study documents opportunities for creating more and better jobs, often in formal employment, linked to the cassava, cashew and plantation forestry value chains. Cassava in Mozambique is currently a traditional subsistence food crop; cashew is a struggling traditional export crop; and plantation forestry is a relatively new sector. However, the study also argues that to realize these opportunities Mozambique requires proactive public policy and investments to overcome significant challenges such as: climate change; over-concentration in current export market destinations; and the unintended side effects of some public policies. The study is focused on promoting an enabling environment for private sector growth in these value chains. It aims to inform ongoing debates about how agriculture and improved natural resource management can contribute more to economic transformation in Mozambique.
Publication(Washington, DC: World Bank, 2021-02) World BankThe global pandemic has taken a heavy toll on Mozambique’s economy. In 2020, the country experienced its first economic contraction in nearly three decades. COVID-19 (coronavirus) hit the economy as it was attempting to recover from the slowdown triggered by the hidden debt crisis and the tropical cyclones in 2019. Real gross domestic product (GDP) contracted by 1.3 percent in 2020, compared to a pre-Covid estimate of 4.3 percent, as external demand declined, domestic lockdown measures disrupted supply chains and depressed domestic demand, and liquified natural gas (LNG) investments were delayed. COVID-19 has caused a sudden income loss for enterprises and households, worsening living conditions, especially for the urban poor largely engaged in the informal sector. According to the National Institute of Statistics, as of June 2020, about 120,000 jobs were lost and 63,000 employment contracts suspended, with women being the most affected. Around 3 percent of the firms affected were forced to cease their activity. Services activities are the hardest hit. The tourism and hospitality industries have particularly suffered a steep decline in revenues. COVID-19 has jeopardized years of hard-won development gains, with about one million people estimated to have slipped into poverty in 2020 (as measured by the international poverty line of 1.90 US Dollars per day). While there is great uncertainty about the path of the pandemic, the economy is expected to gradually recover from 2021 as aggregate demand rebounds and LNG investments and extractive production gain momentum. Despite the expected recovery, the widespread deployment of COVID-19 vaccines will be at the core of a resilient recovery. This Economic Update explores the implications of COVID-19 for the economy, businesses and households. It makes recommendations for moving forward—in the short-term relief phase, as well as over the medium and longer term in order to 'build back better'.
Publication(World Bank, Washington, DC, 2018-08-16) Lachler, Ulrich ; Walker, IanThis report focuses on the challenge of Mozambique's jobs transition: how to accelerate the shift into higher value-added activities and better livelihoods. As Mozambique enters the next phase of the demographic transition, the working-age population (WAP) is growing rapidly. Education levels are also steadily improving. However, good jobs are not expanding fast enough to absorb the growing, better educated labor force. The risk is that many young people will end up doing the same jobs as their parents—and in similar levels of poverty. In this context, the challenge is to help the labor force (particularly young people entering the labor market) increase their earnings by creating opportunities for more productive work. Regardless of whether they are engaged in self-employment or in wage jobs, it is necessary to link them to sources of capital, technology and markets, and to give them access to scale and agglomeration economies. Otherwise, the demographic dividend will be squandered.