Mozambique needs to mobilise about $11 billion a year to meet its Sustainable Development Goals and African Union Agenda 2063 commitments, according to the African Development Bank (AfDB). In a presentation of its 2026 Country Focus Report published on 3 November, the bank puts annual infrastructure needs at $6.4 billion, with an estimated $6.2 billion funding gap.

The challenge extends well beyond the government budget. Launched in Maputo on 16 October, the report describes a country with natural resources and major transport corridors, but also heavy debt-service pressures, foreign-exchange constraints and limited fiscal space. Long-term project finance is therefore a central issue for banks, private investors and development finance institutions.

Public borrowing cannot carry the entire bill

More sovereign borrowing faces constraints already documented by the International Monetary Fund. In its assessment published in February 2026, the IMF classified Mozambique’s public debt as being in distress and highlighted the growing reliance on domestic banks to fund government borrowing. That reliance can raise debt-servicing costs and crowd out lending to businesses.

Mozambique nevertheless has development finance partners. In February, the World Bank said it aimed to mobilise $6 billion over five years, mostly through concessional financing. The AfDB, meanwhile, advocates stronger tax collection and more efficient public investment while attracting private capital through guarantees, blended finance and public-private partnerships.

Transport corridors as a test for private investment

The AfDB identifies the Maputo, Beira and Nacala corridors as potential routes for long-term investment in transport links and regional supply chains. It also calls for deeper financial markets, wider financial inclusion and private equity instruments to channel more funding into productive businesses.

That puts financing structures at the centre of the next investment cycle: public revenue, concessional loans and private investment will need to come together around projects able to attract capital without undermining debt sustainability.