Republic of Mozambique Assessing Fiscal Risks from the Public Corporation Sector

Reforms to strengthen oversight and manage fiscal risk from public corporations are urgent; this report presents analysis and recommendations in support of this objective. The objectives of this report are to assess the nature of fiscal risks arising from the public corporation sector and to suggest an appropriate reform strategy. It identifies six key areas of focus: (i) scope and ownership; (ii) financing public corporations; (iii) oversight arrangements; (iv) reporting and transparency; (v); corporate governance and (vi) legal and regulatory framework. The main recommendations of the report, which are summarized below, could provide the basis for a program of reform to strengthen Mozambique’s management of the sector and its impact on the economy.