Mozambique’s Local Economic Development Fund (FDEL) disbursed approximately $12.9 million in the first half of 2025 to finance projects across the country’s districts and municipalities, according to official data cited by Lusa.
The resources funded 18,337 projects, directly benefiting 21,848 people and creating 42,191 jobs between January and June. According to budget execution data, the government completed the allocation of FDEL resources to districts and municipalities during the review period, in compliance with Decree No. 4/2025 of 5 March. In total, the approximately $12.9 million was channelled to 209 territories — 144 districts and 65 municipalities — representing a financial execution rate of 93.62%.
The distribution of resources took into account criteria including population size, poverty levels, and territorial extent. Specific quotas were also established for administrative posts, localities, and other forms of municipal territorial organisation. According to the report, 356,663 project applications were submitted nationally, of which 18,755 were approved. Of those, 18,337 had received financing by June, corresponding to 97.77% of the total approved.
The funded projects are spread across all provinces of the country, with the highest concentration in Zambézia, Nampula, and Tete. Of the total supported, 17,980 correspond to individual initiatives — 10,494 promoted by men and 7,486 by women.
A further 327 association projects were also financed, involving 3,838 members, of whom 1,709 are women, along with 30 microenterprise projects, 11 of which are led by women.
In sectoral terms, commerce accounted for the largest share of funded projects at 46.46%, followed by agriculture at 27.82%.
The government said this distribution reflects stronger demand for activities that can be implemented rapidly and generate income within local economies. Aquaculture and beekeeping recorded the lowest participation rates, at 0.37% and 0.09% respectively.
The government identifies the FDEL as one of the principal instruments for stimulating local economies.
The executive said these results highlight the need to strengthen awareness campaigns, technical assistance, and communication around available opportunities in lower-participation sectors, given their potential for economic diversification, food security, and job creation.
More than 42,000 jobs
The funded projects directly benefited 21,848 people, of whom 9,206 are women, representing 42.14% of the total. Among the beneficiaries, 12,196 are young people. In employment terms, the initiatives supported by FDEL created 42,191 jobs, of which 23,729 were taken up by men and 18,462 by women. Female participation in the employment generated stood at 43.76%, according to the report.
In its executive summary, the government identifies the FDEL as one of the principal instruments for stimulating local economies, noting that the financing provided has contributed to strengthening production, creating employment, and generating income in communities. The fund was launched in July 2025 by President Daniel Chapo as part of measures defined for his first 100 days in office.
The FDEL establishes that at least 60% of resources must be directed towards individual or associative initiatives led by young people, while the remaining 40% is reserved for economic projects led by women. The financing is repayable and subject to an interest rate of 5%.
At the programme’s launch, President Daniel Chapo warned beneficiaries of their obligation to repay the amounts received, cautioning that non-compliance could result in the application of penalty mechanisms and exclusion from future access to public funds.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/09/economia/fundo-de-desenvolvimento-local-mobiliza-129-m-para-dinamizar-a-economia/
