The government of Mozambique has published the regulatory framework for the Development Bank of Mozambique (BDM), establishing an institution with initial share capital of 32 billion meticais, equivalent to 444.4 million euros. According to Club of Mozambique, which accessed the recently published legislation, the state will fully subscribe to this initial capital, though the law permits the sale of up to 49% of shares to international development finance institutions and multilateral banks in the future.
The bank’s funding structure relies heavily on domestic resources. The regulation stipulates that the National Social Security Institute (INSS) may invest up to 25% of its mandatory social security fund portfolios into the BDM. This limit represents the maximum overall exposure, with actual investment amounts dependent on the financial position and cash-flow requirements of the social security system. The INSS retains the authority to suspend or reduce these investments if actuarial studies indicate risks to the funds' solvency or liquidity. Additionally, state-owned enterprises must channel up to 25% of their financial investment portfolios to the bank during its first year of operation.
Beyond social security, the BDM will be financed by a percentage of state revenue from the extractive sector, determined annually through the state budget law. These funds are designated for exclusive use in structural projects and strategic infrastructure. The bank’s mandate is to provide medium- and long-term financing for sectors including agriculture, energy, manufacturing, and the digital economy, complementing commercial banks that typically focus on short-term, lower-risk operations.
The establishment of the BDM fulfills a key promise made by President Daniel Chapo during his January 2025 inauguration. Chapo described the bank as a strategic pillar for structural economic transformation, arguing that it would finance projects with direct impacts on citizens' lives. The government plans to have the institution fully operational by 2027, with the board chair appointed by the president and other directors selected through public competition.