PESOE 2025: Charting Mozambique’s path to prosperity

How Mozambique’s 2025 budget signals resilience and opportunity in a dynamic landscape

On May 9 and 10, 2025, Mozambique’s National Assembly convenes to debate the Economic, Social, and State Budget Plan (PESOE) for 2025—a roadmap that encapsulates the nation’s ambition to build a prosperous, inclusive, and resilient future. As a parliamentarian representing the FRELIMO bench, I am proud to champion a plan that reflects President Daniel Francisco Chapo’s vision for a united Mozambique, ready to seize global opportunities. This article delves into the transformative elements of PESOE 2025, addresses the challenges we face, and underscores why Mozambique remains a compelling destination for investment and partnership.

A groundbreaking approach to community empowerment

PESOE 2025 introduces a game-changer: the Community Initiatives Fund (CIF), a pioneering mechanism that channels resources directly to local communities for grassroots projects. Picture collective farms in Muecate ensuring food security or women’s cooperatives in Angoche turning artisanal crafts into sustainable businesses. Managed with transparency and citizen input, the CIF empowers communities to shape their own futures—a rarity in traditional budgeting. In Sofala, it will rebuild cyclone-ravaged markets, while in Cabo Delgado, it will restore schools impacted by conflict.

This fund is a bold statement of trust in Mozambique’s people. Unlike past budgets centralized in Maputo, the CIF decentralizes decision-making, amplifying the voices of farmers in Tete, fishers along the Indian Ocean, and educators in Nampula. It’s a model that aligns with global trends in participatory governance, positioning Mozambique as a leader in inclusive development.

Tackling challenges with strategic resolve

Mozambique’s journey is not without hurdles. The post-electoral climate of 2024 has sparked debates, while security concerns in Cabo Delgado and questions about fiscal sustainability linger. PESOE 2025 confronts these challenges head-on. Significant investments in security—bolstered forces and advanced training—aim to stabilize the north, ensuring safety for communities and investors. Fiscal reforms, including a digital tax collection system that boosted revenue by 12% in 2024, are reducing reliance on external debt, countering skepticism about financial management.

Climate resilience is another priority. After years of devastating cyclones, PESOE 2025 allocates funds for disaster-proof infrastructure, such as dikes in Chemba and elevated roads in Sofala. These measures safeguard lives and ensure uninterrupted trade and mobility, reinforcing Mozambique’s role as a regional hub. By addressing these challenges proactively, the government is laying a foundation for long-term stability.

A magnet for global investment

For the international community, Mozambique is a land of opportunity. PESOE 2025 leverages flagship projects like the Afungi LNG development and the Nacala Corridor to cement the country’s status as a trade gateway in the SADC region. Investments in vocational training—through technical centers in Nampula and Tete—are creating a skilled, youthful workforce tailored to the needs of global industries. Transparent governance, underpinned by public audits of PESOE funds, ensures a predictable and secure business environment.

Critics may highlight governance concerns, but the government is taking concrete steps to build trust. The CIF, coupled with a citizen-led monitoring program—empowering local associations like those led by figures such as Dona Marta in Beira—enhances accountability. These efforts dismantle narratives of opacity, making Mozambique an attractive partner for investors seeking stability and growth.

A call to collective action

PESOE 2025 is a national endeavor. From the fields of Mueda to the markets of Quelimane, every Mozambican has a stake in its success. As a parliamentarian, I am committed to ensuring this budget delivers on the aspirations of our people, fostering a nation that thrives on unity and ambition. For global partners, Mozambique offers a vibrant market, strategic location, and a government dedicated to inclusive progress.

Let PESOE 2025 mark a turning point—a moment when Mozambique rises with boldness and vision. In the words I hope will resonate for generations: “From the fertile soil of our unity, we will harvest a prosperity that our children will celebrate.”

Published by Egidio Vaz

Member of Parliament @ Mozambique | Historian & Strategist