Maputo — The Mozambican government has approved the regulation establishing operational rules for the country's Development Bank (BDM), which will be aimed at mobilizing long-term resources and drive strategic investment.
According to Salim Valá, government spokesperson and minister of Planning and Development, speaking to reporters on Tuesday, after a meeting of the Council of Ministers (cabinet), BDM will mobilize long-term resources, act as a catalyst for strategic investment and leverage the participation of multilateral international cooperation partners and development banks.
"The approved regulations will enable the institution to become operational and play a central role in financing initiatives that are structurally important to the national economy. The Bank of positions itself as a strategic partner for the private sector and as a facilitator of Mozambique's socio-economic development, contributing to resource mobilization, poverty reduction and the promotion of inclusive and sustainable economic growth", he said.
The minister also explained that government had opted for an institutional model combining the public mission of promoting development with the principles of corporate management, taking into account that the body was established as a public-law legal entity in the form of a public limited company, "with administrative, financial and asset autonomy."
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"BDM is based on a hybrid model that combines its public mission, the pursuit of the national development interest, with the management discipline and rigour inherent to commercial companies, allowing the institution to operate with the technical independence necessary to conduct its operations without interference, particularly political interference", the minister said.
The bank's structure, he said, is aligned with international best practices applied to development finance institutions and draws on international experiences considered benchmarks. "It was also designed to address financing constraints affecting strategic and structurally important projects that are not normally served by commercial banks."
"This development bank is not intended to compete with other commercial banks. It is intended to fill a specific role, an existing gap in our country", the minister said, adding that "economic infrastructure, agricultural transformation, industrialization, tourism and renewable energy projects" are crucial for financing.
