Maputo, June 15, 2026 (Lusa) - The President of Mozambique, Daniel Chapo, has signed into law the bill establishing the Development Bank of Mozambique, with the aim of structuring, financing and driving forward strategic projects for the country’s progress, the Mozambican Presidency announced on Monday.
The presidency office stated in a press release that the head of state had promulgated and ordered the publication of the law establishing the Development Bank of Mozambique (BDM), after verifying that it did not contravene the country’s Constitution.
According to the document, the promulgation of the law marks the culmination of the legislative process, “fulfilling part of the commitments made in President Chapo’s inaugural address at his inauguration” in January 2025, when he affirmed his determination to promote inclusive development accessible to all Mozambicans.
“In this context, he announced the creation of the Development Bank of Mozambique, with the mission of structuring, financing and driving strategic projects for the country’s progress,” the document states.
On 8 May, parliament approved the Local Content Act and the bill establishing the BDM, an institution that will launch with a share capital of 32 billion meticais (€428 million).
The draft bill establishing the BDM was approved by consensus among the four parliamentary groups: the Mozambique Liberation Front (Frelimo, with a parliamentary majority), the Optimistic People for the Development of Mozambique (Podemos, the opposition leader), the Mozambican National Resistance (Renamo, the third-largest parliamentary group) and the Democratic Movement of Mozambique (MDM, the fourth-largest group).
In its explanatory statement, the government stated that the bank’s capital will be subscribed by the State, but multilateral banks and development institutions may hold up to 49%, with the government justifying the creation of the institution on the grounds of the need for “industrialisation, productive diversification and the reduction of regional disparities”.
On the other hand, it noted that “existing credit institutions focus on the short term and low risk, and are insufficient for infrastructure and energy”.
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