Mozambique

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Situation and Priorities

Social protection situation

Mozambique has been one of the fastest-growing economies in Africa over the last two decades and has a strong record of macroeconomic stability. Despite this, it remains one of the poorest countries in the world with almost half of the population living in chronic poverty; high rates of unemployment, HIV prevalence and stunting; and recurrent food insecurity. Over the past years, Mozambique has been challenged by a series of shocks, including a financial crisis that hit the country in 2016, the outbreak of a still ongoing humanitarian crisis in the north in 2017, devastating and regular climate shocks (such as cyclones, droughts and flash floods), as well as global crises such as the COVID-19 pandemic and the cost-of-living crisis. To address these multifaceted challenges in a context of rising poverty, the country has a number of social protection schemes and programmes for safeguarding income security of workers and people living in a situation of poverty and vulnerability.

Contributory social protection includes benefits in the event of old-age, illness, maternity, disability, and death (survivors). These are available for private and public sector workers via social insurance schemes. In 2022, 994,422 workers nationwide were actively contributing to social insurance and were therefore covered in the event of a social risk, corresponding to 7.3% of the labour force.

Non-contributory social protection includes cash benefits for older persons and persons with disabilities and chronic illnesses; support for vulnerable groups such as malnourished and orphaned children, and people with HIV; a public works programme; and social services. Nearly 550,000 beneficiaries received support in 2022, a significant decrease as compared with 2021 when 1,746,079 beneficiaries were reached, most of them through a temporary programme activated in the context of the social protection response to the COVID-19 pandemic. Most beneficiaries of social protection programmes are registered in the country's largest social assistance programme, the Basic Social Subsidy Programme (PSSB). The majority of the beneficiaries of PSSB are old-age persons (91.5%), followed by persons with disabilities (5.9%). Women represented 64.7% of beneficiaries of social assistance programmes in 2022.

COVID-19 and other crises

Government social protection measures to respond to the socio-economic effects of COVID-19 include:

  • Providing additional support to beneficiaries of Mozambique's three main regular social assistance programmes. The cash transfer was equivalent to three additional months of payments, covering approximately 592,000 households.
  • A new cash transfer (the Direct Social Support Programme - Post Emergency, known as PASD-PE COVID-19) was established for around 990,000 beneficiaries not previously covered by social assistance programmes. The programme provided MZN 1,500 (US$ 20) per month for six months to vulnerable households in urban, peri-urban, and border areas.
Government and social partner priorities

Despite the progress so far, there are significant challenges: issues in implementation, limited financial capacity, and a need to improve the policy framework. The Government is particularly seeking to:

  • Overcome administrative, financial and information barriers preventing own-account workers in the informal economy access to social security benefits.
  • Address the challenges regarding formal (private sector) employees in accessing social protection, including related to compliance.
  • Develop capacities for greater interinstitutional interoperability between social protection management information systems.
  • Improve the governance and administration of social assistance, including statistics, monitoring and evaluation, management information systems and payment efficiency, for improving access to and the efficient delivery of social protection benefits.

Social partners are seeking to:

  • Campaign for the ratification of Convention 102 on Social Security (Minimum Standards).
  • Advocate for the implementation of the strategic plan on contributory social protection including measures facilitating the access of social security to workers in the informal economy.
  • Promote the production of social protection statistics for evidence-based policy and decision making involving key stakeholders.
  • Advocate for increased domestic fiscal space for supporting the expansion of the non-contributory social protection pillar.

ILO Projects and Programmes

Results

In the first phase of the Flagship Programme (2016-2020) the ILO has provided support to national constituents and other social partners in a range of areas, including through supporting the development of the National Basic Social Security Strategy, assisting the drafting of the National Strategy for Contributory Social Security (2016-2018), and supporting the development of management information systems for non-contributory social protection in 2019.

Funding gaps / Support the ILO

US$ 300,000

Assess the economic impact of social transfers on the local economy, and advocate to the Ministry of Finance for increased fiscal space for social protection

US$ 100,000

Share the country’s experience through country briefs and documentary films

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ILO Experts

IMG
Jasmina Papa
Social Protection Specialist
IMG
Nuno Castro
Social Protection Activity Coordinator - ACTION/Portugal Project
IMG
Luis Cotinguiba
Junior Technical Officer
IMG
Vanádio Monteiro
National Project Coordinator