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Mozambique's National Social Security Institute (INSS) could allocate up to 25% of its investment portfolio to the Mozambique Development Bank (BDM), under financing mechanisms established by the legislation governing the new financial institution. The investment would be implemented gradually, without compromising INSS's ability to meet its obligations to beneficiaries.
The provision is included in the regulations implementing Law No. 17/2026, which establishes the funding sources for the Mozambique Development Bank, an institution created to support medium- and long-term projects, stimulate productive investment and promote the growth of the country's business sector.
Under Article 28 of the regulations, resources from the Mandatory Social Security Fund may be invested in the BDM up to a maximum of 25% of its investment portfolio, subject to financial security and sustainability requirements.
However, the legislation establishes safeguards allowing INSS to suspend, reduce or review its investments whenever actuarial, financial or risk assessments identify threats to the fund's solvency, liquidity, profitability or portfolio diversification.
In such circumstances, the invested funds must be reimbursed within a maximum of 30 days to protect resources allocated to social security benefit payments.
In addition to INSS, the Development Bank may also receive investments from pension funds managed by the National Social Welfare Institute.
According to Article 29 of the regulations, these pension funds may allocate up to 25% of their investment portfolios and bank deposits to the new institution, provided that prudential limits are respected and their ability to meet current and future obligations to beneficiaries is maintained.
Bank to Receive State Funding and Natural Resource Revenues
The Mozambique Development Bank will also have access to other funding sources, including annual allocations of $100 million from the State Budget, as well as a percentage of revenues generated by mineral and petroleum resource exploitation.
The institution was designed to finance structural projects in the national economy, particularly initiatives requiring long-term investment that often face difficulties accessing credit through commercial banks.
In this context, mobilising resources from social security and pension funds represents one of the financing alternatives established to strengthen the bank's financial capacity. However, actual investments will depend on risk assessments and the preservation of the sustainability of social protection systems.
The legislation does not require an automatic transfer of 25% of INSS resources. Instead, it permits investments up to that ceiling, subject to established financial and prudential conditions.
The establishment of the Mozambique Development Bank was approved by consensus in the Assembly of the Republic and promulgated by President Daniel Chapo on 15 June 2026.
Through the new institution, the Government aims to expand financing options for the economy, support business development and mobilise resources for projects considered strategic to the country's economic growth.
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