The Mozambican government is negotiating debt rescheduling with Brazil and seeking support for the creation of its future development bank, as part of a visit by the finance minister beginning today.
According to the Mozambican finance ministry, minister Carla Loveira’s visit to Brazil — running until March 20 — aims to “strengthen institutional cooperation in the process of creating and consolidating the Bank of Development of Mozambique (BDM).”
The agenda includes a meeting with the president of Brazil’s Central Bank, Gabriel Galípolo, “to deepen institutional dialogue between the two countries in the area of financial policies and development financing.” Two memoranda of understanding are also planned: one with Brazil’s finance ministry for “strengthening bilateral cooperation in public finances and development financing instruments,” and another with the Brazilian Development Bank (BNDES) for “knowledge sharing, technical assistance and institutional capacity development related to the creation and operation of development banks.”
The mission also covers deepening dialogue on bilateral debt, “taking into account the Mozambique debt rescheduling plan approved by the Brazilian government and submitted to that country’s legislature.” A Mozambican technical delegation will participate in a working programme with BNDES experts on the structuring and operation of development banks, covering institutional architecture, governance, compliance, risk management, resource mobilisation and financing instruments for strategic sectors.
Read more: Brazil moves forward with approval of Mozambique debt restructuring
Mozambique is also seeking BNDES support for infrastructure, agriculture, innovation, exports, sustainability and financing for micro, small and medium-sized enterprises, to help build the institutional capacity needed to implement the BDM.
The Mozambican government established on February 17 the commission that will operationalise the BDM — announced in January 2025 at president Daniel Chapo’s inauguration — with an initial state capitalisation of $500 million (€437 million) planned.
Mozambique reduced its direct debt to the Brazilian state by 11.1% in three months to $25.6 million (€22 million) by end of September, according to the most recent government public debt report. Brazil’s Senate Economic Affairs Commission approved on November 26 the authorisation of a debt restructuring agreement covering another component of the debt — primarily overdue payments to state bank BNDES of $143 million (€122.7 million), largely related to financing for the construction of Nacala International Airport in Nampula province — following a multilateral suspension of debt payments during the Covid-19 pandemic in which Mozambique participated from 2020.
Read more: Mozambique leads youth mental health, Brazil among worst, Angola ranks as most spiritual
Brazilian president Lula da Silva said in Maputo on November 24 that Brazil is “back” in Africa, reaffirming its commitment to Mozambique in sectors including agriculture, food security, energy and biofuels.
