The Mozambican government plans to nearly triple its allocable domestic public investment to €475 million by 2029, with the largest share directed towards infrastructure, according to a report published on Thursday, 20 August, by Lusa.
The new Medium-Term Fiscal Framework (Cenário Fiscal de Médio Prazo — CFMP), recently approved by the Council of Ministers, sets out the government’s public investment priorities through to 2029, within the broader strategy of fiscal consolidation and financing the targets established under the Five-Year Government Programme and the National Development Strategy.
According to the CFMP 2027-2029, the amount of allocable domestic investment — defined as the portion of internal resources available for distribution across priority programmes and projects after covering fixed expenditures and other budgetary commitments — is projected to rise from €208 million in 2027 to €287 million in 2028, reaching €475 million in 2029.
For the first time, the CFMP also introduces quantitative criteria for the selection of public investment projects. Alignment with the Five-Year Government Programme and the National Development Strategy will carry a weighting of 35% in the evaluation process, followed by economic and social impact at 25%, institutional execution capacity at 20%, territorial equity at 10%, and the ability to mobilise additional financing, also at 10%.
According to the government, these criteria are designed to ensure ‘rationality in resource allocation’ and to improve the efficiency of public investment.
Infrastructure, spatial planning, and territorial organisation are set to absorb 30% of the programmed resources, making them the primary destination for domestic investment through to 2029. Structural economic transformation and social and demographic transformation follow, each accounting for 23% of total allocations.
National unity, peace, and security will receive 18% of resources, while actions related to environmental sustainability and climate change will account for 6%.
Within the infrastructure sector, approximately €52 million is earmarked for 2027, rising to €74 million in 2028 and €138 million in 2029.
The document states that the priority accorded to infrastructure reflects the need to expand and rehabilitate economic and social infrastructure considered essential to economic growth and the delivery of public services.
The investment targets are set within a fiscal consolidation framework under which the government aims to reduce public debt from 72.2% of gross domestic product (GDP) in 2025 to 67.1% by 2029, while preserving resources for areas considered strategic to the country’s development.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=532269
