Mozambique may soon have a Development Bank (BDM) to finance strategic economic transformation projects. To this end, the government submitted a bill to the Assembly of the Republic (AR) on Monday, April 27, for urgent consideration.
According to a press release from the Office of the President, cited by the Mozambique News Agency, the action was taken in accordance with the powers granted to President Daniel Chapo by the Constitution.
The proposal is in line with the commitments made by the head of state in his inaugural address on January 13, 2025, when he announced a commitment to concrete measures aimed at building an inclusive development model capable of expanding Mozambicans’ access to economic and financial opportunities.
With the creation of the Development Bank of Mozambique, the country aims to establish a financial instrument dedicated to structuring, financing, and driving strategic development projects, thereby consolidating one of the pillars of the structural transformation of the national economy.
In February, the Government approved, at a meeting of the Council of Ministers, the resolution establishing the BDM’s founding committee. The committee serves as a technical advisory body, with the objective of “ensuring the preparation of all necessary instruments for the creation and operationalization” of the future financial institution.
According to the Economic Recovery and Growth Plan (PRECE), approved by the government last September, the state plans to inject $500 million for the bank’s initial capitalization. The document also indicates that capital will be raised from institutions such as the African Development Bank and the World Bank, as well as through the issuance of development bonds.
The Plan establishes that the BDM’s operations will be guided by rigorous technical criteria, with a view to ensuring financial sustainability and economic and social impact. Priorities will focus on projects with high multiplier potential, capable of generating employment, increasing national production, and improving the living conditions of the population, covering sectors such as energy, industry, infrastructure, agriculture, health, education, and housing, in addition to support for small and medium-sized enterprises.
Finance Minister Carla Loveira previously stated that the creation of the bank constitutes a “strategic response to the urgent need to boost financing for the country’s development,” emphasizing the need for an institutional vehicle capable of channeling domestic and foreign resources toward transformative projects.
