The World Bank argued on Wednesday that Mozambique must adopt a new development model grounded in structural economic transformation, productive diversification, human capital development, and stronger governance, identifying these areas as decisive in converting the country’s economic potential into shared prosperity.
The position was presented by World Bank Division Director Fily Sissoko at the International Conference on Inclusive and Sustainable Development of Mozambique, where he reflected on the country’s economic trajectory over the past 25 years and identified five priorities that should guide the development agenda in the coming decades.
According to Sissoko, ‘Mozambique’s trajectory since the end of armed conflict is, above all, a demonstration of resilience.’ He recalled that following the reconstruction begun in the 1990s and the opening of the economy, the country recorded, for nearly two decades, one of the highest rates of economic growth on the African continent, averaging close to 8% per year.
However, he noted that this trajectory was repeatedly disrupted by internal and external shocks, including economic crises, cyclones, the Covid-19 pandemic, the instability caused by insurgency in Cabo Delgado, and, more recently, political tensions and volatility in the international economy.
One of the central lessons from that experience, in Sissoko’s view, is that economic growth alone does not guarantee development. He argued that increases in gross domestic product must translate into improved living conditions for families, farmers, workers, women, and young people across all regions of the country.
Sissoko also stressed that an abundance of natural resources represents an opportunity but not a guarantee of prosperity. In his view, ‘revenues from natural gas and mining must be channelled into productive investments, infrastructure, education, health, and institutional strengthening, in order to create sustainable wealth and employment.’
Another priority highlighted by the World Bank is economic diversification. Sissoko argued that Mozambique should not rely exclusively on extractive resources, calling instead for a sustained focus on agriculture, agro-processing, manufacturing, logistics, tourism, and services.
The World Bank division director also emphasised the need to place employment and human capital development at the centre of public policy. He argued that the demographic dividend can only be captured through the creation of quality jobs and sustained investments in education, health, and professional training.
At the same time, he warned that ‘strengthening institutions is one of the main pillars of sustainable development.’ Investor and citizen confidence, he explained, depends on transparent governance, sound economic management, and institutions capable of responding to the challenges posed by climate change, health crises, and security threats.
Despite the challenges, Sissoko argued that ‘Mozambique possesses competitive advantages that can drive a new phase of economic growth,’ highlighting a predominantly young population, significant natural gas reserves, and a strategic geographic position served by ports and logistics corridors connecting Southern Africa to international markets.
In his remarks, Sissoko stated that the central question is no longer whether Mozambique has the capacity to grow — that capacity has been demonstrated over the past decades. The real challenge, he stressed, is to transform that growth into employment, higher household incomes, and shared prosperity.
To achieve that objective, the World Bank representative presented five strategic priorities. The first is the transformation of agriculture and industrial development, through modernising production, expanding irrigation, raising productivity, and strengthening value chains, thereby reinforcing food security and boosting exports.
The second priority is strengthening human capital through investments in education, health, nutrition, and vocational training, preparing young people to meet the demands of modern agriculture, industry, tourism, and the digital economy. The third focuses on expanding infrastructure — including roads, energy, water supply, sanitation, housing, digital connectivity, and climate-resilient infrastructure — which Sissoko described as fundamental to energising the private sector and driving job creation.
As the fourth priority, Sissoko argued that revenues from natural gas and mineral resources should be used to drive industrialisation, promote fertiliser production, and stimulate value-added activities, converting natural resources into productive assets. Finally, he called for strengthening the state’s implementation capacity through a more modern public administration, greater institutional coordination, fiscal discipline, and a results-oriented management culture.
He concluded that delivering on these five priorities could enable Mozambique to accelerate the structural transformation of its economy, create greater employment opportunities, and ensure that the benefits of growth reach a growing number of citizens over the coming decades.
The International Conference on Inclusive and Sustainable Development of Mozambique is taking place on 8 and 9 July at the Mozambique-China Cultural Centre in Maputo, bringing together government officials, academics, researchers, private sector representatives, development partners, civil society organisations, financial institutions, and international bodies. Organised by the Ministry of Planning and Development, the conference aims to take stock of the country’s development path between 2000 and 2025 and build consensus around strategic priorities for the decades ahead.
Over the two days, participants are debating themes including economic growth, structural transformation, social inclusion, governance, human capital, environmental sustainability, and competitiveness. The event features contributions from government ministers, economists, development specialists, representatives of universities, research centres, and multilateral institutions, in a reflective exercise aimed at informing Mozambique’s development vision to 2050.
Source: Diário Económico
