Mozambique Needs $11 Billion Annually for Development

The African Development Bank Group emphasized Mozambique's need for approximately $11 billion annually to achieve its development objectives, as outlined in its 2026 Country Focus Report, launched in Maputo on 16 October 2026.

The report, titled 'Mobilising Mozambique's Development Financing at Scale in a Fragmented World,' examines the country's economic performance and financial barriers to development. It outlines financing gaps and recommends policies to attract public and private investment.

Mozambique faces financial pressure from limited government resources, debt repayments, foreign exchange shortages, climate-related disasters, and global economic uncertainty. These challenges hinder funding for essential infrastructure, business support, and development programs.

The report identifies three key priorities: enhancing economic resilience, mobilizing large-scale investment, and improving the financial system. It recommends modernizing tax administration, improving tax compliance, and ensuring public investment delivers greater economic and social benefits.

Transport corridors like Maputo, Beira, and Nacala are seen as opportunities to strengthen trade, attract investors, and expand industrial activities. Developing these routes alongside stronger financial and regulatory systems could attract long-term investment.

The African Development Bank's Country Manager, Rômulo Cunha Corrêa, stressed that public financing alone cannot realize Mozambique's development potential. He emphasized the need for increased domestic revenue, improved government investment quality, and better conditions for private sector participation.

The report suggests tools like guarantees, concessional financing, and blended finance to attract private capital. These mechanisms can reduce investment risks and encourage support for projects that might otherwise struggle to secure funding.