The Government will inject $500 million (31.6 billion meticais) as initial capitalization for the future Mozambique Development Bank, according to information from Lusa. This amount will be guaranteed by the State, but the bank will also receive contributions from development finance institutions, including the African Development Bank and the World Bank, as well as through the issuance of development bonds.
According to the Economic Recovery and Growth Plan (Prece), recently approved by the Government, the bank’s operations will be guided by strict technical criteria, with the goal of ensuring financial sustainability and economic and social impact of the projects financed. The document emphasizes that priority will be given to initiatives with a strong multiplier effect, capable of creating jobs, boosting domestic production, and improving living conditions for the population.
The Prece establishes that the Mozambique Development Bank will aim to attract and channel both domestic and foreign resources into strategic projects in key sectors such as energy, industry, infrastructure, agriculture, health, education, and housing. The bank also plans to promote the development of Small and Medium Enterprises (SMEs) through accessible credit and technical assistance, fostering job creation and economic inclusion.
In addition, the institution will support investments in priority and sustainable sectors, focusing on projects with high economic, social, and environmental impact. The initiative will also help reduce exchange rate risks by prioritizing financing in local currency, making credit more accessible and stable for national beneficiaries.
“The Mozambique Development Bank will be a public financial institution whose main goal is to catalyze the country’s sustainable and integrated development by financing structuring projects that drive long-term economic growth,” the Government stated.
The bank’s activities will focus on strategic sectors such as industry, agriculture, tourism, energy, transport, water, sanitation, and irrigation systems. According to the Government, by offering longer-term loans at lower interest rates than commercial banks, the institution will make viable investments that are currently unattainable for the private sector or the State due to limited resources. The measure is seen as essential to stimulate economic and social growth.
In September, the Government launched a public consultation on the legal framework for the creation of the Mozambique Development Bank. The official announcement was made by President Daniel Chapo during his inauguration speech on January 15.
“We will create the Mozambique Development Bank to build infrastructure, finance, and promote strategic projects for our country’s progress. With the resources generated from gas assets, we will capitalize this bank and immediately invest in initiatives that transform the lives of Mozambicans,” the Head of State said at the time.
Source: Diário Económico
