Development Bank of Mozambique starts with capital of 32 billion meticais

In the Government proposal creating the BDM, to be discussed in parliament on Friday, it is argued that Mozambique “needs industrialization, productive diversification, and the reduction of regional asymmetries” and that, on the other hand, “current credit institutions focus on the short term and low risk, being insufficient for infrastructure and energy.” With the BDM, the Government intends to “create a specialized vehicle for priority sectors,” such as agriculture, renewable energy, and export sectors, establishing “a robust and transparent governance framework.” “The BDM is prohibited from receiving deposits from the public,” defines the legislation presented by the Government to parliament, as is the granting of guarantees to entities eligible for the Mutual Guarantee Fund. Its “strategic” areas of operation will be agriculture, agro-industry, manufacturing and extractive industries, infrastructure, renewable energy, mineral resources, technological innovation, and resilience to climate shocks. “At my inauguration as Head of State on January 15, 2025, I made a commitment to the Mozambican people to create a future where development is accessible to all.

Indeed, the creation of the BDM, which will have the mission of structuring, financing, and boosting strategic projects for our country’s progress, constitutes a strategic axis and one of the pillars for the structural transformation of the economy,” justifies Mozambican President Daniel Chapo in the letter addressed to parliament accompanying the legislative proposal. “I further stressed that with the resources generated by assets such as natural gas, we will capitalize this bank and immediately invest in projects that positively transform the lives of Mozambicans. The BDM’s vision will be to be a national reference institution for strengthening financing instruments oriented toward economic, social, and sustainable development, based on a mission to enable investments that have a real impact on the economy, especially where commercial bank financing is limited or insufficient,” he further justified. According to Chapo, the BDM will have as its “primary objectives to boost Mozambique’s economic development through the financing of strategic and sustainable projects, aiming at the reinforcement of economic sovereignty,” as well as through the “mobilization of national and international capital, the reduction of market failures, the boosting of structural investments, and the creation of a long-term financial instrument.” The Government of Mozambique previously assumed the objective of having the BDM “effectively operational” in 2027, counting for this purpose, among others, on the support of the National Bank for Economic and Social Development (BNDES).