The Centre for Public Integrity (CIP) of Mozambique warned, in a note published on 18 October, that financing the new Development Bank of Mozambique (BDM) with extractive revenues could reduce the resources devoted to other public investment.
The draft budget for 2027, approved on 13 October by the Council of Ministers, provides for 79.57 billion meticais in public investment. According to the CIP, this envelope would be 21.1% lower than the reference amount for 2026, of 100.84 billion.
The note does not establish a causal link between this decline and the BDM's capitalisation. For the CIP, allocating to the bank revenues that are already budgetary changes how they are used, without creating additional resources for the state.
The BDM's regulations allocate to the institution a share of the tax and non-tax revenues of the extractive sector. This share must be set each year in the budget law, while preserving the legal allocations to other public funds.
The decree of 17 September requires that extractive revenues transferred to the bank finance exclusively structuring projects and strategic infrastructure. Their use for current expenditure is prohibited, and their use must be published annually in the management report and accounts.
The CIP does, however, acknowledge the value of mobilising additional financing and reusing repaid loans. It calls for these gains to be measured, along with the costs and financial risks.
The regulations provide for the use of credit institutions, financial companies or investment funds to implement the financing. These intermediaries are responsible for disbursing funds to beneficiaries and collecting capital repayments and interest.