LUSA 04/16/2025

Lusa - Business News - Mozambique: Thematic capitals for decentralising state, regional growth - govt

Maputo, April 15, 2025 (Lusa) - The Mozambican government intends to create thematic capitals for the different sectors and areas of society in order to decentralise the state, one of the priorities in the long-term objectives of the National Development Strategy (ENDE) 2025-2044. The document, to which Lusa had access on Tuesday and which will be discussed in parliament in the coming weeks, defines several actions "of critical importance for achieving the objectives" of the strategy, starting with "creating thematic capitals". "Adopting a model of decentralisation of state institutions, with the aim of promoting regional and spatial development, such as tourist capital, parliamentary capital, oil and gas capital, mining capital," reads the document, the first version of which was approved in June 2024 by the previous government, which has already been revised under the current executive led by Daniel Chapo, sworn in as the fifth Mozambican president in January. Gas production in Mozambique is centred in the provinces of Cabo Delgado and Inhambane, which is also considered to be the most touristic in the country, while the mining provinces of Tete and Nampula stand out, while the country's capital and the current seat of the Mozambican parliament is in Maputo. The document defines other priority initiatives, such as "implementing measures to combat corruption and strengthening public institutions", arguing that promoting transparency and improving accountability are central aspects of attracting investment and creating a fairer business environment". It also defines the need to "implement policies and incentives to diversify the economy, promoting industrialisation and the local transformation of natural resources", pointing to the "transition from primary sectors to high value-added sectors and services, especially in the areas of agro-industry, mining and technology" as "essential to reduce the vulnerability of the economy and strengthen domestic and regional value chains". It also "improves the legal framework by drafting, reviewing and improving the legal and guiding instruments in the extractive and mining industry", from the outset "inserting the obligation of local processing in order to add value and its direct implication in the Gross Domestic Product, through the export of the finished product and its direct implication in human development". It also points to the priority of "investing in quality education and health, professional education, science and technology allied to artificial intelligence, with an emphasis on science, technology, engineering and mathematics", in order to attract domestic workers. "Qualifying the workforce, combined with harnessing the demographic dividend, will be a crucial driver for increasing productivity and innovation, creating a solid foundation for inclusive, sustainable growth and boosting human development," it says. Another National Development Strategy (ENDE) 2025-2044 priority until 2044 is to "overcome the deficit in essential infrastructure, with a focus on transport, energy, water and sanitation", with this ‘improvement’ being the "key to increasing the country's competitiveness, boosting regional trade and improving the quality of life of communities". It also plans to "reinforce the capacity to adapt to and mitigate the impacts of climate change, with an emphasis on managing the risks of natural disasters", investing in renewable energies and green technologies as a "crucial option to guarantee an energy transition that favours sustainability, while protecting infrastructure and ecosystems". Finally, it provides for the integration of environmental conservation practices, "promoting the circular economy and encouraging the sustainable use of natural resources", and to this end "territorial planning must include the blue and green economy, with a focus on reducing waste and increasing the reuse of resources". PVJ/AYLS // AYLS Lusa