Mozambique's Ministry of Finance announced that the Assembly of the Republic has approved, in general and in detail, the proposed law establishing the Mozambique Development Bank. The new institution is designed as a specialised vehicle to connect development partners with transformative projects in the country and to support greater financial inclusion. According to the ministry, the law is based on the principles of financial additionality and catalytic effect, with the bank intended to add value to the national financial system and to the development financing framework set out in ENDE, the PQG and other strategies. The Mozambique Development Bank will not operate as a commercial bank, but as a development institution with a specific mandate to support structuring projects and mobilise financing for strategic investments, with the ministry stating that private-sector crowding out is therefore not expected.

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