Maputo, June 21, 2026 (Lusa) - Mozambique and the Islamic Development Bank (IsDB) have agreed to draw up a Partnership Plan for the next three years, which will set out funding priorities in line with the government’s Five-Year Programme, the Ministry of Finance announced on Sunday.
The Ministry of Finance stated in a press release that this is the first joint exercise with the multilateral partner to define an instrument of this nature, which is expected to serve as the basis for structuring a new financing package focused on priority projects for the country’s economic and social development.
According to the government, the agreement was reached during the 51st annual meeting of the IsDB Group, held between 16 and 19 June in Baku, Azerbaijan, attended by the finance minister, Carla Loveira, and the bank’s Vice-President for Operations, Rami Ahmad, where the two parties reviewed the portfolio of projects currently financed by the IsDB in Mozambique.
Notable among these projects are the 400-kilovolt power transmission line between Chimuara, in Zambézia province, and Nampula; the power transmission project from the Temane thermal power station in Inhambane; and the construction of a secondary school in the district of Mueda, in Cabo Delgado province.
According to the document, the future partnership is expected to guide the financing of priority projects, in line with the development priorities set out in the government’s Five-Year Programme (2025–2029), which focus on accelerating economic growth, with an emphasis on agriculture, energy, industry and infrastructure, alongside the strengthening of social sectors such as education and health, within a framework of macroeconomic stability and good governance.
In her address at the bank’s statutory meetings, Loveira, who attended in her capacity as Mozambique’s governor at the IsDB, welcomed the re-election of the institution’s president, Muhammad Suleiman Al Jasser, for a new term, and highlighted the launch of an IsBD Concessional Fund (ICF), the document states.
This new financial instrument, according to the same source, will be directed towards the bank’s 27 least developed member countries, with the aim of mitigating the impacts of macroeconomic shocks, including debt sustainability issues, the effects of climate change, and geopolitical instability.
On the sidelines of the meeting, the minister held bilateral meetings with the president of the Arab Bank for Economic Development in Africa (BADEA), Abdullah Almusaibeeh, and with officials from the Multilateral Centre for Development Finance (MCDF), expressing Mozambique’s interest in mobilising funding for projects under the National Development Strategy.
The IsDB’s annual meetings, which brought together representatives from the 53 member states, were held under the theme “Regional Integration, Prosperity for Development” and emphasised the importance of South-South cooperation in mobilising resources for sustainable and inclusive development, amid reduced funding from traditional multilateral agencies.
The Mozambican delegation comprised senior officials from the Ministry of Finance and the Bank of Mozambique.
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