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A €500 million credit facility announced by the Portuguese Government to support investment by Portuguese companies in Mozambique has yet to become fully operational, ten months after Prime Minister Luís Montenegro unveiled the initiative during the 6th Portugal-Mozambique Summit, held in Porto in December 2025.
The delay has prompted Portugal's Socialist Party (PS), the country's main opposition party, to demand explanations from the Government over the reasons preventing the financial mechanism from becoming operational.
According to Portuguese news agency Lusa, in a letter addressed to the Minister of State and Foreign Affairs, the Socialists recalled that the credit facility was announced on 9 December 2025 but remains unavailable to companies seeking to benefit from the financing.
"Almost a year later, the instrument is still not fully operational, and the credit facility remains unavailable to Portuguese companies," the party stated in the letter.
The PS also expressed concern over the lack of information regarding the financing conditions, including the institutions responsible for managing the facility, repayment periods, interest rates, eligible sectors and guarantees required from companies.
According to the Socialists, the uncertainty could undermine planned investments and weaken the competitiveness of Portuguese businesses in Mozambique amid growing international competition.
"This uncertainty has real costs. It penalises companies that were counting on this support, weakens the Portuguese economic presence in a market where we compete with other international investors, and calls into question the credibility of a commitment made to a friendly country," the letter stated.
The opposition is therefore demanding that Luís Montenegro's Government explain the reasons for the delay, provide a timetable for making the facility operational and clarify when the first financing agreements could be signed.
The PS also wants to know whether the Portuguese Government still expects to make the first disbursements in 2026, including an initial €100 million tranche planned for the first year.
In July, during a visit to Portugal, Mozambican President Daniel Chapo indicated that negotiations were in their final stages, with projects already submitted by the Mozambican side and initial disbursements expected during the second half of the year.
However, in late August, Portugal's Secretary of State for the Economy stated only that the Government was working to make the mechanism operational as soon as possible, without providing a specific date.
The credit facility was presented as a financial instrument aimed at supporting the international expansion of Portuguese companies and strengthening economic co-operation between Portugal and Mozambique.
According to the Socialist Party, key aspects of the mechanism remain unclear, while interested companies continue to await access to the announced financing.
The parliamentary initiative was confirmed in a statement issued by the Socialist Party's parliamentary group on 15 October 2026.
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