Mozambique: Government to boost public investment budget by 3.6 billion meticais

The Mozambican government intends to increase the public investment budget by 3.6 billion meticais (56.5 million US dollars at the current exchange rate) for 2026.

Speaking on Saturday at the Assembly of the Republic, the country’s parliament, during the presentation of proposal for a targeted revision of the 2026 Economic and Social Plan and State Budget (PESOE), the executive branch plans to boost public investment by 3.6 billion meticais, with priority given to the restoration of infrastructure damaged by floods.

According to Levi, the revision stems from the identification of a carry-over balance exceeding 3.5 billion meticais, derived from the budgetary allocation of revenues from Liquefied Natural Gas (LNG), which is currently held in the transitional account of Mozambique’s Sovereign Wealth Fund.

“The proposal does not alter the strategic objectives of the 2026 Economic and Social Plan and State Budget. It aims to strengthen the State’s capacity to address the urgent needs of the population and accelerate the country’s economic and social recovery”, she said.

With this revision, the State’s internal resources will increase from 442.9 billion to 446.5 billion meticais, while public expenditure will rise from 520.6 billion to 524.2 billion meticais. Public investment, meanwhile, will increase from 100.8 billion to 104.4 billion meticais.

The Prime Minister highlighted that the additional resources will be primarily allocated to the “rehabilitation of roads, bridges, water supply systems, dikes, irrigation canals, and dams, as well as to the restoration of schools, health facilities, and government infrastructure affected by extreme weather events.”

Interventions in social infrastructure will focus primarily on the southern provinces Inhambane and Maputo Gaza Sofala. The objective is to restore public services, boost economic activity, particularly in agriculture, and improve road connectivity in the affected areas.

“It is within this framework that we propose that the resources to be incorporated into the 2026 PESOE be channeled, as a priority, toward investments capable of accelerating the recovery of affected areas, strengthening national resilience, and laying a firmer foundation for inclusive and sustainable economic growth,” she stated.

Levi further emphasized that the proposal reaffirms the government’s commitment to ensuring that revenues derived from natural resources yield tangible benefits for the population.

“In the government’s view, revenues from natural resources serve as an instrument for economic and social transformation”, she said.

Source: AIM