Maputo, Sept. 9, 2026 (Lusa) - Mozambique's Local Economic Development Fund (FDEL) financed 18,337 projects in the first half of the year, disbursing 824.6 million meticais (€11 million), benefiting 21,848 people and creating 42,191 jobs, according to official figures.
According to budget implementation data for January to June, the Government completed allocating FDEL resources to districts and municipalities, in accordance with Decree No. 4/2025 of 5 March.
During the period under review, the fund allocated 824.6 million meticais to 209 local authorities, comprising 144 districts and 65 municipalities, representing a financial execution rate of 93.62%. The distribution of funds was based on population, poverty, and territorial size, and specific quotas were also defined for administrative posts, localities, and other forms of territorial organisation within the municipalities.
The report indicates that 356,663 projects were submitted nationwide, of which 18,755 were approved. Of these, 18,337 had already been funded by June, corresponding to a funding rate of 97.77% of the approved projects.
The funded projects cover all the country's provinces, with the highest concentration in Zambezia, Nampula and Tete.
By type, of the 18,337 funded projects, 17,980 are individual initiatives: 10,494 by men, and 7,486 by women. The fund also supported 327 association projects involving 3,838 members, 1,709 of whom were women, as well as 30 micro-enterprise projects, 11 of which were led by women.
By sector, the retail sector accounted for the largest share of funding, representing 46.46% of supported projects, followed by agriculture at 27.82%. According to the document, this distribution «highlights a greater demand for activities that can be implemented quickly and have the potential to generate income in local economies».
In contrast, fish farming and beekeeping accounted for the smallest shares of total funded projects, at 0.37% and 0.09%, respectively. The government considers that «these results point to the need to strengthen awareness-raising, technical assistance and the promotion of existing opportunities in these areas», given their potential for economic diversification, food security and job creation.
On immediate social impact, the projects directly benefited 21,848 people, of whom 9,206 were women, accounting for 42.14 per cent of the total. The beneficiaries included 12,196 young people.
In terms of socio-economic impact, the funded projects created 42,191 jobs, of which 23,729 were held by men and 18,462 by women. Female participation in the jobs created stood at 43.76%, according to the report.
In its summary, the government highlights the FDEL as one of the main instruments for boosting local economies, noting that the disbursement of 824.6 million meticais and the approval of 18,755 projects have helped to boost production, job creation and income generation in communities.
President Daniel Chapo launched the FDEL on 1 July 2025 and encouraged beneficiaries to repay the funding received, emphasising that prompt repayment would help maintain access to future public funds and support the activation of incentive mechanisms.
Established as part of the measures introduced during the first 100 days of Daniel Chapo's administration, the fund stipulates that at least 60% of the resources must be channelled towards individual or group initiatives led by young people, and the remaining 40% towards economic projects led by women; it also specifies that the funding is repayable and subject to an interest rate of 5%.
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