Mozambique's National Development Strategy (ENDE) 2025–2044

THe Five Pillars

The ENDE is structured around five interconnected pillars, each with specific objectives, investments, and actions. It integrates sectoral strategies for implementation over 20 years, emphasizing a "combination" of funding sources including the state budget, development funds, tax incentives, and subsidies.

 Pillar 1: Structural Transformation of the Economy

Pillar 1 addresses Mozambique's historical reliance on extractives (like gas and coal) and subsistence agriculture, which contribute to volatility and inequality. The pillar's success will hinge on mobilizing private capital, with projected investments of around 11.9 billion meticais (approximately US$188 million) allocated specifically to its initiatives, though total sectoral funding could reach tens of billions through public-private partnerships (PPPs).

Objectives of Pillar 1

The primary goal of Pillar 1 is to drive sustainable, inclusive economic growth by transforming Mozambique's production structure. Key objectives include:

Economic Diversification

Reducing dependence on raw commodity exports by promoting value-added industries, such as agro-processing, manufacturing, and light engineering. This aligns with global trends toward resilient supply chains and positions Mozambique as a regional hub for Southern Africa.

Boosting labor and capital efficiency through technology adoption, skills development, and market access improvements. Targets include increasing total factor productivity by 2–3% annually, enabling firms to compete in African Continental Free Trade Area (AfCFTA) markets.

Scaling up investments in priority sectors to create jobs and generate foreign exchange. The strategy forecasts the creation of over 500,000 formal jobs by 2035, with a focus on youth and women.

Integrating green technologies to ensure growth is environmentally sound, including renewable energy integration in manufacturing and circular economy practices in resource extraction.

These objectives are measured through indicators like the share of manufacturing in GDP (target: 15% by 2044 from current ~12%), export diversification index, and private sector contribution to GDP (aiming for 70%).

Key Strategies and Initiatives

Pillar 1 outlines a multi-pronged approach, leveraging Mozambique's natural endowments—fertile lands, mineral wealth, and coastal access—while addressing bottlenecks like skills gaps and infrastructure deficits. Core strategies include:

1. Sectoral Prioritization and Value Chain Development

Transforming subsistence farming into commercial agribusiness by modernizing value chains. Initiatives include irrigation expansion in the Limpopo and Zambezi basins, seed technology dissemination, and processing hubs in SEZs like Nacala and Mocuba. Investors can tap into cashew, cotton, and sugarcane processing, with incentives for export-oriented projects.

Promoting light manufacturing clusters in textiles, pharmaceuticals, and assembly (e.g., electronics). The strategy supports industrial parks in Beira and Maputo, with fiscal incentives under the Investment Law, such as tax holidays for greenfield investments.

Beyond extraction, emphasizing downstream beneficiation (e.g., aluminum smelting from Mozal expansions) and renewable energy manufacturing. With LNG projects ramping up, opportunities abound in gas-to-power and hydrogen production.

2. Innovation, Technology, and Human Capital

Establishing innovation hubs and vocational training centers linked to industries, targeting 80% youth skills alignment by 2035. Partnerships with international firms for technology transfer are encouraged, including R&D in biotech for agriculture.

Digital economy push: Expanding broadband to 90% coverage and e-commerce platforms to integrate SMEs into global markets.

3. Private Sector Enablement and Trade Integration

Streamlining business regulations via the "One-Stop Shop" reforms, reducing company registration time to under 72 hours. The strategy commits to AfCFTA ratification and bilateral trade deals, aiming to double non-mineral exports to US$5 billion by 2044.

Financial inclusion: Expanding access to credit for SMEs through development banks, with blended finance models attracting FDI.

4. Investment Mobilization

Total funding for Pillar 1 draws from domestic revenues, multilateral loans (e.g., World Bank, AfDB), and FDI. PPP frameworks target US$50–100 billion in private inflows, with risk mitigation via guarantees from MIGA and export credit agencies.

Implementation is phased: Short-term (2025–2028) focuses on foundational reforms; medium-term (2029–2035) on scaling; long-term (2036–2044) on maturity and sustainability.

Pillar 2 : Social and Demographic Transformation

Pillar 2: Social and Demographic Transformation focuses on harnessing Mozambique's youthful population and addressing social disparities to drive inclusive growth. For foreign investors, this pillar presents opportunities to align with sustainable development goals (SDGs) while tapping into a growing labor force and consumer base. By prioritizing education, health, gender equality, and social cohesion, Pillar 2 aims to create a resilient society that underpins economic progress.

Mozambique faces demographic challenges: a population of approximately 35 million (2025 estimate), with over 60% under 25, and high poverty rates (over 60% live below the international poverty line). Pillar 2 seeks to turn this youthful demographic into an asset, leveraging investments in human capital to fuel sectors like agriculture, manufacturing, and services. With an estimated 11.9 billion meticais (approximately US$188 million) allocated directly, plus broader funding through public-private partnerships (PPPs), this pillar is a cornerstone of Mozambique's long-term prosperity.

Objectives of Pillar 2

Pillar 2 aims to transform Mozambique's social and demographic landscape to support sustainable development and equitable growth. Its core objectives include:

• Human Capital Development: Enhancing education and health outcomes to create a skilled, healthy workforce. Targets include achieving 90% literacy by 2035 and reducing under-5 mortality to 30 per 1,000 live births by 2044.

• Demographic Dividend Capture: Leveraging the youthful population (median age ~17) to boost productivity, with a goal of increasing labor force participation to 75% by 2044, particularly for youth and women.

• Social Inclusion and Gender Equality: Reducing disparities by improving access to services for women, rural communities, and marginalized groups, aiming for a 50% reduction in gender-based economic gaps.

• Social Cohesion and Resilience: Strengthening community stability in conflict-prone areas (e.g., Cabo Delgado) and building adaptive capacity against climate shocks, targeting 80% coverage of social protection programs.

Key performance indicators include secondary school completion rates (target: 60% by 2044), maternal mortality ratio (100 per 100,000 live births), and social protection beneficiaries (10 million by 2035).

Key Strategies and Initiatives

Pillar 2 employs a comprehensive approach to address Mozambique's social and demographic challenges, focusing on scalable interventions that align with economic goals. Core strategies include:

1. Education and Skills Development

• Universal Education Access: Expanding primary and secondary education, with a focus on rural areas and girls. Initiatives include building 5,000 new classrooms by 2030 and teacher training programs to improve quality. Investors can explore opportunities in ed-tech, such as digital learning platforms for remote regions.

• Vocational and Technical Training: Aligning curricula with market needs, particularly for SEZ industries like agro-processing and manufacturing. Partnerships with private firms aim to train 500,000 youth by 2035 in fields like renewable energy and ICT.

• Higher Education and Innovation: Strengthening universities and establishing STEM-focused institutes to support Pillar 1's industrialization goals, with incentives for private investment in research hubs.

2. Health System Strengthening

• Universal Healthcare Access: Expanding healthcare facilities, targeting 1,500 new clinics by 2044, and improving maternal and child health services. PPPs are encouraged for hospital construction and medical supply chains, especially in underserved provinces like Niassa and Zambézia.

• Disease Prevention: Scaling up programs for malaria, HIV/AIDS, and tuberculosis, aiming to reduce prevalence by 50%. Opportunities exist for pharmaceutical companies in vaccine production and distribution.

• Nutrition and Food Security: Linking with Pillar 1's agricultural initiatives to address malnutrition, targeting a 30% reduction in stunting through fortified food production and school feeding programs.

3. Gender Equality and Social Inclusion

• Women's Economic Empowerment: Promoting women's access to finance, land, and entrepreneurship training, with a goal of 1 million women-led SMEs by 2044. Microfinance partnerships and gender-focused impact funds offer investment avenues.

• Rural Development: Improving access to water, sanitation, and electricity in rural areas (80% coverage by 2035), creating markets for off-grid solar and water purification technologies.

• Social Protection: Expanding cash transfers and safety nets, like the INAS program, to cover 8 million vulnerable households, with private sector roles in digital payment systems.

4. Demographic Management and Urbanization

• Family Planning and Population Growth: Promoting access to reproductive health to stabilize population growth (target: fertility rate of 3.5 by 2044), reducing strain on resources.

• Sustainable Urbanization: Developing secondary cities like Beira and Nampula to decongest Maputo, with opportunities for real estate and infrastructure investors in housing and urban mobility.

Implementation is phased: short-term (2025–2028) focuses on access expansion, medium-term (2029–2035) on quality improvements, and long-term (2036–2044) on sustainability and resilience.

Pillar 3: Infrastructure, Organization, and Territorial Planning

Pillar 3: Infrastructure, Organization, and Territorial Planning is pivotal, addressing Mozambique's infrastructure deficits and spatial disparities to unlock economic potential and enhance connectivity. For foreign investors, this pillar offers lucrative opportunities in transport, energy, water, and urban development, supported by robust public-private partnership (PPP) frameworks and incentives within Special Economic Zones (SEZs). By prioritizing modern infrastructure, efficient institutional organization, and balanced territorial development, Pillar 3 lays the foundation for inclusive and sustainable growth across Mozambique's diverse regions.

Mozambique's infrastructure challenges—limited road networks, unreliable electricity, and uneven urban-rural development—have historically constrained investment. Pillar 3 allocates significant resources, with an estimated 11.9 billion meticais (approximately US$188 million) directly budgeted and billions more expected through PPPs, to transform the country into a regional logistics hub and a model for sustainable urban planning.

Objectives of Pillar 3

Pillar 3 seeks to create a modern, integrated infrastructure ecosystem while optimizing territorial planning and organizational efficiency. Its core objectives include:

• Infrastructure Modernization: Expanding and upgrading transport, energy, water, and ICT infrastructure to support industrial growth and trade. Targets include 80% electrification by 2035 and 5,000 km of paved roads by 2044.

• Territorial Equity: Promoting balanced development between urban centers (e.g., Maputo, Beira) and rural regions, reducing regional disparities, and ensuring 70% of districts have access to modern infrastructure by 2044.

• Organizational Efficiency: Streamlining public and private institutions to reduce bureaucratic delays, with a goal of cutting project approval times by 50% through digital governance platforms.

• Sustainable Urban and Rural Planning: Integrating climate-resilient designs and green technologies into infrastructure projects, aiming for 100% of new developments to meet sustainability standards by 2035.

Key indicators include the percentage of population with access to clean water (target: 90% by 2044), logistics performance index ranking (top 50 globally), and urban population growth managed sustainably (60% urbanized by 2044).

Key Strategies and Initiatives

Pillar 3 employs a strategic, multi-faceted approach to address infrastructure gaps, enhance institutional coordination, and promote equitable spatial development. Core initiatives include:

1. Transport and Logistics Infrastructure

• Road and Rail Networks: Upgrading the N1 highway and expanding the Nacala and Maputo rail corridors to support SEZs like Nacala and Manga-Mungassa. The strategy targets 2,000 km of new rail lines, with PPP opportunities in logistics hubs and dry ports (e.g., UTE SEZ).

• Ports and Airports: Modernizing the ports of Nacala, Beira, and Maputo to handle 50% more cargo by 2035, alongside upgrading airports like Pemba for tourism and trade. Investors can explore concessions for port operations and aviation services.

• Regional Connectivity: Strengthening corridors to landlocked neighbors (e.g., Malawi, Zimbabwe) via the AfCFTA, positioning Mozambique as a trade gateway. Financing models include Build-Operate-Transfer (BOT) schemes.

2. Energy and Water Infrastructure

• Energy Access and Renewables: Scaling up electrification through hydropower (e.g., Mphanda Nkuwa dam) and solar projects, targeting 2,000 MW of renewable capacity by 2035. Opportunities exist for investors in off-grid solar and mini-grids for rural areas.

• Water and Sanitation: Expanding water supply networks to achieve 80% rural access to potable water, with PPPs for desalination plants and wastewater treatment in coastal cities like Macaneta.

• Smart Infrastructure: Integrating IoT and smart grids to optimize energy and water distribution, with pilot projects in Maputo and Nampula.

3. Territorial Planning and Urban Development

• Balanced Regional Development: Prioritizing infrastructure in underserved provinces like Niassa and Gaza, linked to SEZs like Limpopo Agro-Business. Land-use planning reforms aim to allocate 10 million hectares for sustainable agriculture and industry by 2044.

• Sustainable Urbanization: Developing secondary cities (e.g., Quelimane, Tete) to reduce Maputo's congestion, with investments in affordable housing, public transport, and green spaces. Real estate developers can benefit from tax incentives.

• Climate Resilience: Incorporating flood-resistant designs and cyclone-proof infrastructure, especially in coastal zones, with multilateral funding from the Green Climate Fund.

4. Organizational Reforms and Digitalization

• Institutional Streamlining: Enhancing coordination between APIEX, CTA, and sectoral ministries to fast-track approvals. A digital one-stop shop for permits is targeted for 2028 rollout.

• E-Governance: Expanding digital platforms for land registries and urban planning, reducing corruption risks. Investors in GovTech can partner for blockchain-based land titling systems.

• Capacity Building: Training 10,000 public servants by 2035 to improve project management, with private sector roles in professional development programs.

Implementation is phased: short-term (2025–2028) focuses on priority projects like road rehabilitation; medium-term (2029–2035) scales up energy and urban systems; long-term (2036–2044) ensures sustainability and regional integration.

Pillar 4 : Governance, Peace, and Security

Pillar 4: Governance, Peace, and Security is the backbone of this vision, ensuring a stable, transparent, and secure environment to sustain economic and social progress. For foreign investors, this pillar offers assurance of a predictable business climate, underpinned by reforms to strengthen institutions, resolve conflicts, and enhance security. By addressing governance challenges and fostering peace, particularly in regions like Cabo Delgado, Pillar 4 creates a foundation for investment in sectors like energy, agriculture, and tourism. With an estimated 11.9 billion meticais (approximately US$188 million) allocated directly, alongside broader funding through public-private partnerships (PPPs), this pillar is critical to Mozambique's long-term stability and growth.

Mozambique has faced governance issues, including corruption and bureaucratic inefficiencies, alongside security challenges from insurgencies and climate-induced displacement. Pillar 4 tackles these head-on, aligning with global standards to attract foreign direct investment (FDI) and ensure equitable development.

Objectives of Pillar 4

Pillar 4 aims to establish robust governance, lasting peace, and enhanced security to support Mozambique's development goals. Its core objectives include:

• Strengthening Governance: Improving transparency, accountability, and efficiency in public institutions, targeting a 50% reduction in corruption perception indices (e.g., Transparency International's CPI) by 2044.

• Promoting Peace and Stability: Resolving conflicts, particularly in northern provinces, and fostering social cohesion, aiming for zero active insurgencies by 2035 and 80% community trust in peace processes.

• Enhancing Security: Strengthening national and local security frameworks to protect citizens, businesses, and infrastructure, with a goal of reducing violent crime rates by 40% by 2044.

• Rule of Law and Justice Access: Expanding access to fair, efficient judicial systems, targeting 70% of the population with access to legal services by 2035, especially in rural areas.

Key indicators include the World Bank's governance effectiveness score (target: top 50% globally), peace index rankings, and the percentage of resolved legal disputes within six months.

Key Strategies and Initiatives

Pillar 4 employs a multi-dimensional approach to address governance weaknesses, promote peace, and enhance security, ensuring alignment with economic and social pillars. Core initiatives include:

1. Governance Reforms and Institutional Strengthening

• Anti-Corruption Measures: Implementing digital procurement systems and whistleblower protections to curb corruption, with a target of 90% public tenders online by 2030. Investors can support GovTech solutions for transparency.

• Public Sector Efficiency: Streamlining bureaucratic processes, reducing business licensing times to under 48 hours via APIEX's one-stop shops. Training 15,000 civil servants by 2035 enhances institutional capacity.

• Decentralization: Empowering provincial and district governments to manage local development, aligning with Pillar 3's territorial planning. PPPs are encouraged for e-governance platforms like digital tax systems.

2. Peacebuilding and Social Cohesion

• Conflict Resolution: Building on the 2019 Maputo Peace Accord, expanding disarmament, demobilization, and reintegration (DDR) programs for ex-combatants, particularly in Cabo Delgado. Community dialogue forums aim to reach 1 million citizens by 2035.

• Youth and Community Engagement: Creating economic opportunities in conflict-prone areas through SEZ projects (e.g., Nacala, Mocuba) to reduce unrest. Investors in social enterprises can support job creation for youth.

• Reconciliation Programs: Promoting inter-community trust through cultural and educational initiatives, with private sector roles in media and community development projects.

3. Security Enhancement

• Strengthening Law Enforcement: Modernizing police and border security with advanced training and equipment, targeting a 50% increase in operational capacity by 2035. Opportunities exist for security tech providers (e.g., surveillance, cybersecurity).

• Critical Infrastructure Protection: Securing SEZs, ports, and energy projects like LNG facilities in Palma, with PPPs for private security services and risk management.

• Counter-Terrorism: Enhancing coordination with regional bodies (e.g., SADC) to address insurgencies, with a focus on stabilizing Cabo Delgado to protect investments like TotalEnergies' LNG projects.

4. Justice and Rule of Law

• Judicial Reforms: Expanding mobile courts and legal aid to rural areas, aiming for 500,000 beneficiaries annually by 2035. Investors can fund legal tech platforms for case management.

• Land and Property Rights: Strengthening land registries to reduce disputes, using blockchain for transparency. This supports Pillar 3's territorial planning and attracts real estate investment.

• Human Rights Protections: Ensuring compliance with international standards, enhancing investor confidence through stable legal frameworks.

Implementation is phased: short-term (2025–2028) focuses on governance reforms and peace stabilization; medium-term (2029–2035) scales up security and justice access; long-term (2036–2044) ensures institutional sustainability.

Pillar 5 :Environmental Sustainability and Climate Change

Pillar 5: Environmental Sustainability and Climate Change is a cornerstone of this vision, addressing Mozambique's acute vulnerability to climate impacts while promoting sustainable development. For foreign investors, this pillar unlocks opportunities in renewable energy, green agriculture, and climate-resilient infrastructure, supported by incentives in Special Economic Zones (SEZs) and public-private partnerships (PPPs). By integrating environmental stewardship with economic growth, Pillar 5 ensures Mozambique's resources—its forests, coastline, and biodiversity—fuel prosperity without compromising future generations. With an estimated 11.9 billion meticais (approximately US$188 million) directly allocated, plus significant multilateral and private funding, this pillar positions Mozambique as a leader in sustainable development in Africa.

Mozambique ranks among the world's most climate-vulnerable nations, facing frequent cyclones, floods, and droughts that disrupt agriculture and infrastructure. Pillar 5 tackles these challenges, aligning with global frameworks like the Paris Agreement and SDGs to attract green investments and build resilience.

Objectives of Pillar 5

Pillar 5 aims to embed environmental sustainability and climate resilience into Mozambique's development, balancing growth with ecological preservation. Its core objectives include:

• Climate Resilience: Strengthening adaptive capacity to reduce economic losses from climate events by 50% by 2044, protecting key sectors like agriculture and tourism.

• Sustainable Resource Management: Promoting efficient use of natural resources, targeting a 30% reduction in deforestation rates and 100% sustainable fisheries by 2035.

• Green Economy Transition: Scaling up renewable energy and low-carbon technologies, aiming for 50% of energy from renewables by 2044 and a 20% reduction in carbon intensity.

• Biodiversity Conservation: Preserving ecosystems like Gorongosa National Park and coastal mangroves, with a goal of expanding protected areas to 30% of land and marine territories by 2044.

Key indicators include renewable energy capacity (2,500 MW by 2044), forest cover retention (80% of current levels), and climate adaptation coverage (90% of vulnerable communities).

Key Strategies and Initiatives

Pillar 5 employs a comprehensive approach to integrate sustainability and climate action into Mozambique's development, leveraging its natural assets while mitigating environmental risks. Core initiatives include:

1. Climate Adaptation and Resilience

• Climate-Resilient Infrastructure: Retrofitting roads, ports, and SEZs (e.g., Nacala, Macaneta) with cyclone- and flood-resistant designs. PPPs are encouraged for resilient urban planning, with investments projected at US$5 billion by 2035.

• Early Warning Systems: Expanding meteorological networks and community-based alerts, targeting 100% coverage of at-risk areas by 2030. Opportunities exist for tech firms in weather monitoring and data analytics.

• Agricultural Adaptation: Promoting drought-resistant crops and irrigation in SEZs like Limpopo Agro-Business, with private sector roles in seed technology and water management systems.

2. Sustainable Resource Management

• Forestry and Land Use: Implementing reforestation programs and sustainable logging, aiming to plant 10 million trees by 2035. Investors can fund carbon credit schemes linked to Mocuba SEZ forestry projects.

• Fisheries and Marine Resources: Enforcing sustainable fishing quotas and restoring mangroves, with PPPs for aquaculture ventures in coastal zones like Pemba.

• Water Resource Management: Enhancing watershed protection in the Zambezi and Limpopo basins, with opportunities for private investment in desalination and water recycling.

3. Green Energy and Low-Carbon Development

• Renewable Energy Expansion: Scaling up solar, wind, and hydropower (e.g., Mphanda Nkuwa dam), targeting 3,000 MW of new capacity by 2044. Investors can access tax incentives for off-grid solar in rural areas and SEZs.

• Energy Efficiency: Promoting green manufacturing in SEZs like Manga-Mungassa, with grants for energy-efficient technologies and circular economy practices.

• Carbon Market Development: Establishing a national carbon trading framework, aligning with global markets to attract ESG-focused investors.

4. Biodiversity and Ecosystem Protection

• Conservation Programs: Expanding protected areas like Gorongosa and Quirimbas National Parks, with ecotourism opportunities for investors in Macaneta SEZ's tourism projects.

• Biodiversity Financing: Launching green bonds and conservation funds, targeting US$1 billion by 2035, with multilateral support from the Green Climate Fund.

• Community-Based Conservation: Engaging local communities in biodiversity monitoring, with private sector roles in sustainable tourism and wildlife management.

Implementation is phased: short-term (2025–2028) focuses on adaptation and renewable energy pilots; medium-term (2029–2035) scales up green infrastructure; long-term (2036–2044) ensures ecosystem sustainability.

Estimated Budget -  Mozambique's National Development Strategy (ENDE) 2025–2044