Mozambique's Council of Ministers has approved the regulation establishing the organisational and operational framework for the Banco de Desenvolvimento de Moçambique (BDM), an institution created to mobilise long-term resources and finance strategic investments in the country, according to an announcement made on Tuesday, 25 August, by the Lusa news agency.
The announcement was made by Council of Ministers spokesperson Salim Valá at the close of the 25th ordinary session, held in Manica province. The regulation will enable the operationalisation of the BDM, which was established under Law No. 17/2026 of 15 June.
"The country will now have a development finance institution with the capacity to mobilise long-term resources, act as a catalyst for strategic investments, and leverage the participation of multilateral partners and development banks," Salim Valá said.
The BDM is expected to finance structural projects and support the private sector, contributing to resource mobilisation, poverty reduction, and inclusive and sustainable economic growth.
According to the spokesperson, the bank is a public legal entity constituted as a public limited company, with administrative, financial, and patrimonial autonomy. The model is designed to combine a public development mandate with corporate governance principles.
Salim Valá explained that the BDM is not intended to compete directly with commercial banks, but rather to fill a gap in the financing of strategic projects that are typically not served by commercial institutions. Priority sectors include infrastructure, agriculture, industrialisation, tourism, and renewable energy.
"The challenge is to ensure that this new institution has the necessary safeguards for efficient and sustainable management. It must be a well-managed, viable bank that contributes to the accelerated, inclusive, and sustainable development of our country," he said.
The law establishing the BDM was promulgated by President Daniel Chapo on 15 June.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=533788
