Social Protection in Mozambique – Progress and Challenges

The 4th Statistical Bulletin on Social Protection (2021) provides a comprehensive analysis of Mozambique's social protection system, covering both contributory and non-contributory schemes. The report highlights coverage expansion, financial expenditures, and the adequacy of benefits, while also identifying key gaps in the system. Mozambique’s social security framework is divided into Mandatory Social Security (SSO) for formal workers and Basic Social Security (SSB) for vulnerable populations, managed by different institutions, including INSS, INPS, and INAS-IP. The bulletin presents statistical insights on beneficiaries, financial allocations, and policy implications aimed at improving the system’s effectiveness.

Key Findings

Mozambique’s social protection system expanded significantly in 2021, with the number of beneficiaries doubling compared to 2020, reaching over 2 million individuals. The Mandatory Social Security (SSO), managed by the National Institute of Social Security (INSS), provided 17,005 short-term benefits, including sick leave (48.9%), maternity (22.8%), and funeral assistance (17.2%). Long-term benefits covered 107,559 pensioners, with the majority receiving survivor pensions (63.5%), followed by old-age pensions (35%). The Basic Social Security (SSB), implemented by INAS-IP, assisted 1.75 million people through direct cash transfers and emergency response programs, with 67.2% of beneficiaries receiving post-emergency aid.

Despite these advancements, social protection coverage remains limited, reaching only 6.8% of Mozambique’s population. The non-contributory system (SSB) remains underfunded, with expenditures representing only 1.09% of GDP. Additionally, geographical disparities persist, with higher coverage in urban areas compared to rural regions, where poverty and vulnerability are more pronounced. While efforts have been made to expand informal sector coverage, only 7,807 self-employed workers were registered under social security, highlighting the need for policy adjustments to integrate informal workers. Financial sustainability is another challenge, as most funding for social assistance programs relies heavily on external aid.

Looking forward, strengthening social protection in Mozambique requires structural reforms, including expanding coverage, increasing budget allocation, and ensuring benefit adequacy. Investments in digitalization, transparent financial management, and policy integration will be crucial to improving efficiency. Strengthening shock-responsive social protection mechanisms to address climate disasters and economic crises will also enhance resilience among vulnerable populations. Additionally, fostering inter-ministerial coordination and improving enforcement mechanisms will ensure greater access to social security benefits for both formal and informal workers.

Mozambique’s social protection system has grown significantly, benefiting millions of people through pensions, cash transfers, and social assistance programs. However, low coverage, financial constraints, and regional inequalities remain major challenges. Expanding both contributory and non-contributory schemes, improving funding mechanisms, and integrating informal workers into the system will be key priorities for sustainable social protection reforms. Strengthening governance, financial transparency, and technological innovations will be essential in making social protection more inclusive and effective.

The Bibliography sources:

RESET Foundation is committed with the The Sustainable Development Goals (SDGs). By addressing funding gaps, increasing participation, and modernizing service delivery, Mozambique can build a more inclusive and resilient social protection system, ensuring long-term sustainability and improved well-being for all citizens.

The Social Protection in Mozambiqueis linked to several SDGs:

The SDG'sG's, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.