Mozambique has established a National Development Bank to finance strategic projects, accelerate economic growth and promote inclusive development. President Daniel Chapo signed the law creating the institution after parliament approved the legislation in May.
The new development bank will structure, finance and promote projects considered important for Mozambique’s long-term development. It will also support government policies aimed at strengthening economic and social progress across the country.
According to the government, the creation of the Mozambique Development Bank is part of a wider strategy to promote productive investment, strengthen the national economy, support job-creating initiatives, improve competitiveness and advance sustainable development.
The bank has been launched at a time when Mozambique is facing serious financial and economic challenges. The country has experienced difficult financing conditions, debt-service arrears, slower-than-expected economic growth and pressure on public spending.
Social unrest following the October 2024 elections also affected businesses, reduced imports and weakened the services sector. These challenges have added pressure to an economy already facing rising poverty and limited access to finance for small and medium-sized enterprises.
The National Development Bank is expected to help mobilize resources for strategic investments, expand productive sectors, support infrastructure development and stimulate economic activity across Mozambique’s regions.
The institution will begin operations with share capital of approximately 32 billion meticais, equivalent to about US$501 million, fully subscribed by the Mozambican state. The law also allows the government to open part of the bank’s capital to other investors in the future.
Through the new bank, Mozambique aims to improve access to long-term financing, strengthen investment capacity and support a broader economic transformation agenda focused on inclusive and sustainable growth.
