Mozambique: Jobs as a pathway out of poverty – by Fily Sissoko, World Bank country director

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Mozambique: Jobs as a pathway out of poverty – by Fily Sissoko, World Bank country director

5:37 CAT | 31 Oct 2025

Photo courtesy: World Bank Mozambique

On a recent morning in Maputo, I passed a group of young people repairing kettles under a tree. They had no shop, no formal training, and no fixed income — but they had customers and determination. Just steps away, a young woman was selling tomatoes, lemons, and airtime while caring for a child. These everyday scenes reflect the spirit of Mozambican micro-entrepreneurs — resilient and full of potential. Yet despite their willpower, many remain in subsistence mode, without opportunities to thrive.

Every year, about half a million young Mozambicans enter the labor market. However, only around 25,000 formal jobs are created. Most work in subsistence agriculture or informal jobs that offer little security and low income. These activities keep them busy but rarely allow them to escape poverty.

As we recently marked the International Day for the Eradication of Poverty, it is essential to recognize that jobs are the most powerful pathway out of poverty. Therefore, integrating it as a central pillar of development strategies is not just smart economics—it’s a moral imperative.

Mozambique has what it takes to prosper. With its strategic location on the Indian Ocean and proximity to landlocked neighbouring countries, it is well-positioned to become a regional hub for trade, energy, and tourism. It is rich in natural resources — from vast arable land and mineral deposits to one of the world’s largest natural gas reserves — and has a young population ready to power the economy.

Mozambique’s ambition to chart a new development path offers a window of opportunity to tackle long-standing structural constraints and create more and better jobs — especially for young people.

The country’s aspirations echo the experience of Viet Nam, a country that has shown how strategic reforms and effective policy implementation can transform an economy. In 1987, both Vietnam and Mozambique were classified as low-income economies with similar per capita income levels. Since then, their paths have diverged sharply.

Over the past three decades, Vietnam has sustained nearly 7 percent annual economic growth, lifting living standards, increasing average income sixfold, and reducing poverty from nearly 60 percent in 1993 to less than 3 percent in 2020. This transformation was driven by strategic investments in human capital, a favourable demographic profile, high savings and domestic investment, and bold reforms in agriculture, trade, and the business environment that unlocked private sector potential and integrated the country into global markets.

Mozambique can draw inspiration from this journey. Aligning policy reforms with long-term development goals, investing in people, and fostering an environment conducive to inclusive growth are essential. A critical step is ensuring macro-fiscal stability to restore investor confidence and lay the foundation for sustainable development.

But perhaps the most important lesson from Viet Nam and other Asian success stories is the power of execution. Implementation is not a bureaucratic afterthought; it is the policy. It is the engine that turns vision into results. Without effective implementation, even the best-designed strategies will remain aspirations.

From my own experience, I’ve learned that successful implementation depends on five factors: strong leadership, a long-term vision with clear objectives, a dedicated and skilled implementation team, robust monitoring systems, and regular engagement with citizens and the private sector.

In line with the new government’s priorities, the World Bank Group is developing a new Country Partnership Framework to support Mozambique’s development over the next five years. This strategy aims to unlock the transformative power of the country’s economic corridors by:

Supporting job creation in high-potential sectors—particularly energy, agribusiness, and tourism.

Strengthening private capital enablers—through policies that secure macro-fiscal stability, address infrastructure bottlenecks, improve the business environment, and invest in a healthier, more skilled workforce.

Addressing the drivers of fragility—to ensure that growth is inclusive and sustainable.

This is Mozambique’s moment — especially for its youths and women. It is a time to build skills, seize the opportunities of large-scale energy investments, and forge a new compact among government, civil society, the private sector, and development partners.

At the heart of this compact must be a shared commitment to stronger economic governance which will be the foundation of Mozambique’s success.

By Fily Sissoko,