Mozambique Needs $11 Billion a Year: AfDB Calls for Stronger Development Financing

The African Development Bank Group highlighted this financing challenge in its 2026 Mozambique Country Focus Report, launched in Maputo on 16 October 2026.

Mozambique needs approximately $11 billion every year to meet its development goals, placing growing pressure on the country to attract investment and improve the management of public resources. The African Development Bank Group highlighted this financing challenge in its 2026 Mozambique Country Focus Report, launched in Maputo on 16 October 2026. The report identifies major opportunities in natural resources, regional transport networks and private investment that could help the country strengthen economic growth and create more employment opportunities.

The report, titled Mobilising Mozambique's Development Financing at Scale in a Fragmented World, examines the country's economic performance and the financial barriers affecting its development priorities. Government representatives, development partners, financial institutions, private businesses, civil society organisations and academic experts attended the launch to discuss ways of strengthening Mozambique's investment environment. Published as the African Development Bank's annual country-level companion to the African Economic Outlook 2026, the report outlines financing gaps and recommends policies to attract greater public and private investment.

Mozambique faces increasing financial pressure from limited government resources, debt repayments, foreign exchange shortages, climate-related disasters and uncertainty in the global economy. These challenges make it difficult to fund essential infrastructure, support businesses and maintain development programmes that could improve living standards across the country. The report highlights the need for stronger public financial management, sustainable debt policies and a more competitive business environment capable of attracting long-term investment.

Mozambique Faces a Major Infrastructure Financing Shortfall

According to the African Development Bank, Mozambique requires approximately $11 billion annually to meet its Sustainable Development Goals and African Union Agenda 2063 commitments. Infrastructure development alone requires around $6.4 billion each year, with an estimated financing gap of approximately $6.2 billion that remains a major obstacle to economic progress. Closing this shortfall will require stronger domestic revenue collection, more efficient government spending and greater participation from private investors.

Mozambique's Secretary of State for Budget and Treasury, Amílcar Tivane, described the report as an important foundation for discussions about financing sustainable and inclusive development. He reaffirmed the government's commitment to improving tax revenue collection, strengthening public financial management and maintaining responsible debt policies that protect economic stability. Tivane emphasised the importance of working with the African Development Bank to turn Mozambique's natural and financial resources into productive investments, employment and better opportunities for its population.

The report identifies stronger economic resilience, large-scale investment mobilisation and improvements in the financial system as three essential priorities for Mozambique's development. It recommends modernising tax administration through digital technology, improving tax compliance and ensuring that public investment delivers greater economic and social benefits. Strengthening public-private partnership frameworks and expanding access to long-term financing could help the country attract investment without placing excessive pressure on government finances.

Transport Corridors and Private Investment Offer New Growth Opportunities

Mozambique's strategic location and regional transport connections provide opportunities to strengthen trade, attract investors and expand industrial activities. The Maputo, Beira and Nacala corridors could play an important role in connecting businesses with regional markets, supporting supply chains and encouraging investment in infrastructure and productive industries. Developing these transport routes alongside stronger financial and regulatory systems could help Mozambique attract reliable long-term investment and build a more diversified economy.

African Development Bank Country Manager for Mozambique Rômulo Cunha Corrêa stressed that the country's development potential cannot be fully realised through public financing alone. He highlighted the importance of increasing domestic revenue, improving the quality of government investment and creating stronger conditions for private businesses to participate in economic development. The Bank intends to continue working with the government, private sector and development partners to support investments that generate employment, strengthen economic growth and improve livelihoods.

The report identifies guarantees, concessional financing, blended finance and co-investment arrangements as important tools for attracting private capital into strategic sectors. These financing mechanisms can help reduce investment risks and encourage businesses and financial institutions to support projects that might otherwise struggle to secure funding. The African Development Bank and other multilateral development institutions could play a central role by combining financial support, risk-sharing instruments and technical assistance to increase investment opportunities.

Financial Reforms Could Strengthen Investment and Economic Stability

Improving Mozambique's financial system is another major recommendation, particularly through stronger banking operations, financial stability and wider access to affordable financial services. The report encourages digital and inclusive finance, better banking sector efficiency and policies that support the mobilisation of long-term capital for productive businesses. These improvements could make financing more accessible to entrepreneurs and investors, helping businesses expand their operations and create additional employment opportunities.

Alternative financing sources could provide further opportunities for Mozambique to reduce its dependence on traditional public funding and international development assistance. Private equity, venture capital, diaspora financing and financial technology are identified as potential channels for mobilising investment and supporting business development. Creating a stronger financial environment could encourage greater participation from domestic and international investors and improve the availability of capital across different economic sectors.

The African Development Bank reaffirmed its commitment to supporting Mozambique through financing partnerships, technical expertise and policies that encourage sustainable investment. The report presents a development strategy centred on financial stability, responsible public spending and stronger private sector participation to address the country's substantial investment requirements. Mobilising more capital and directing it to productive activities could help Mozambique strengthen economic resilience, create jobs and build a more competitive and inclusive economy.