Four months after Lula da Silva’s visit to Maputo, relations with Brazil are intensifying. Finance Minister Carla Louveira crossed the Atlantic carrying the dossier for the Development Bank of Mozambique.
Brazil is a recurring stop in Mozambique’s rounds of diplomatic and economic relations with the rest of the world—reinforced by the fact that both are part of the “Global South.” In March, the Mozambican government announced new contacts with the Brazilian state to reschedule bilateral debt, while also seeking support for the establishment of the Development Bank of Mozambique.
Finance Minister Carla Louveira traveled across the Atlantic to meet, among others, with the President of the Central Bank of Brazil, Gabriel Galípolo, in order to “deepen institutional dialogue between the two countries in the field of financial policies and development financing.” The minister also held meetings with Brazil’s Ministry of Finance and the National Bank for Economic and Social Development (BNDES). According to a statement from Louveira’s office, the agenda included preparations for “technical assistance and the development of institutional capacities related to the creation and operation of development banks.”
The Mozambican delegation met with BNDES specialists dedicated to this type of operation, particularly in areas such as institutional architecture, compliance, risk management, and resource mobilization strategies. Mozambique is also seeking BNDES support in infrastructure, agriculture, sustainability, and financing for small businesses.
In Search of External Investment
Brazil’s President visited Maputo in November and stated that the country is “back” in Africa, signaling renewed investment efforts in Mozambique in sectors such as agriculture, food security, energy, and biofuels.
In Maputo, at a time of significant pressure on public finances, all investment intentions are welcome. The Mozambican government created in February the commission responsible for operationalizing the Development Bank of Mozambique (BDM), which was announced a year ago during the inauguration of President Daniel Chapo.
The government plans to inject $500 million in state funds for the bank’s initial capitalization, according to the Economic Recovery and Growth Plan (PRECE).
