Mozambique establishes Development Bank to fund strategic projects

Mozambique has entered a new phase of its local content policy with the creation of the Mozambique Development Bank (BDM). Promulgated by President Daniel Chapo, the law aims to address the lack of credit available to small and medium-sized enterprises (SMEs), which has historically limited the ability of national companies to participate in large-scale projects.

The BDM has a social capital of 32 billion meticais, fully subscribed by the State, though multilateral banks and development finance institutions may eventually hold up to 49% of the shares. The bank is tasked with structuring and financing strategic projects to drive industrialization, productive diversification, and the reduction of regional inequalities.

The institution is intended to fill a gap left by commercial banks, which typically prioritize short-term, low-risk operations. The BDM will focus on structural projects in sectors such as industry, energy, agriculture, and infrastructure, providing the necessary funding for SMEs to invest in equipment, technology, and productive capacity.