The main goal of this analysis is to deepen the readers’ understanding of the complex issue of health financing and the need to assess the existing fiscal space in Mozambique to optimize its use. It is hoped that this exercise will help the Ministry of Health develop a coherent approach to increase its capacity to generate, allocate, target and control domestic financial resources in alignment with the priorities outlined in its Health Sector Strategic Plan (PESS) 2014-2019 (extended to 2024).

Some of the conclusions include: a) Exploring more growth scenarios systematically, particularly regarding revenue from extractive economic sectors, would add value to the Health Sector Financing Strategy (HSFS) draft document; b) Each of the fiscal space components discussed has its specificities, advantages and disadvantages, and their net effects on fiscal space, and need to be carefully analysed and considered for inclusion, or not, in the finalization of the HSFS document; c) Part of such assessment should also include evaluating the cost-effectiveness of generating additional financial resources or increasing the yield of the existing ones, in relation to the expected benefits; d) There is a critical need for verifying and updating data as part of an ongoing process. The importance of a consistent and regularly updated database on fiscal matters, including non-fiscal data in the health sector cannot be overstated for effective planning, budgeting and forecasting; e) It is important to enhance the understanding and analysis of at least two components of the fiscal space discussed above: the private sector health services together with private health insurance, and the way medical and medicines assistance (ASEM) works, or not, as a promising avenue for health sector financing. We recommend commissioning separate studies on these subjects.

This policy note is only available in English.