Mozambique: Private funding is strategic for sustainable development – Chapo

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Mozambique: Private funding is strategic for sustainable development – Chapo

5:04 CAT | 02 Jul 2025

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Photo: Presidency of the Republic of Mozambique

Mozambican President Daniel Chapo believes that private funding is a strategic imperative for sustainable development, as it is an engine of innovation, growth and value creation for Mozambique and other developing countries.

According to Chapo, who was speaking on Tuesday in the Spanish city of Seville, on the sidelines of the Fourth United Nations International Conference on Financing for Development (FFD4), leveraging companies and private investment is not an option but an essential condition for boosting Mozambique’s development in an accelerated and sustainable way.

“For this reason, we believe that private financing should seek to establish appropriate solutions, aimed, among other things, at stimulating the development of entrepreneurship, innovation, internationalization and company mobility,” he said.

He gave the example of the African Continental Free Trade Area (AfCFTA), which has 1.4 billion consumers, “a fact which will allow for a substantial increase in intra-African trade by 2045.”

In addition to increasing intra-African trade to over 50 per cent and Africa’s share of global trade to 12 per cent, the AfCFTA also aims to create a single market for goods and services in Africa and the continent’s participation in global trade.

“That’s why governance and transparency, reform of the legal framework, promotion of local content and the development of innovative financing mechanisms are important to us. It is undeniable that public funding alone is insufficient to bridge the vast investment gap needed to achieve the country’s development goals”, he said.

The President explained that Mozambique’s national agenda consists of economic transformation, reducing poverty, creating decent jobs, especially for young people, and building resilient infrastructure, all in line with the United Nations’ Sustainable Development Goals 2015-2030.

“In addition to the significant structural challenges, the country’s development journey, like that of many developing countries, is ambitious and full of potential”, he added.

FFD4 is aimed at reformulating the international financial architecture in order to ensure greater equity and inclusion in access to resources, especially for developing countries, including Mozambique.

According to the United Nations (UN), development aid is currently facing a deficit of four billion dollars a year.

Source: AIM