Mozambique's Council of Ministers, in its 4th ordinary session, approved and discussed various matters of interest, including the Report on President Daniel Chapo's participation in the 39th African Union Summit in Addis Ababa, Ethiopia, from February 12-15, 2026. The Council also approved a proposal for a Law establishing the National Payment System, which aims to adjust the legal framework to accommodate recent developments and establish mechanisms to enhance security and transparency.
The proposed Law, which will be submitted to the Assembly of the Republic, seeks to repeal the 2008 Law and provide a more comprehensive framework for the National Payment System. According to the Council of Ministers, the new Law will ensure the organization, operation, supervision, and oversight of the payment system are carried out with enhanced security and transparency. This move is expected to boost confidence in the financial sector and promote economic growth.
In addition to the National Payment System, the Council of Ministers approved a Decree establishing the regulations for Special Economic Zones (SEZs) and Industrial Free Zones (IFZs). The new regulations aim to provide a clear framework for the creation, operation, and management of SEZs and IFZs, which are expected to drive economic growth and attract investment. The regulations will repeal the 1999 Decree and provide a more conducive environment for businesses to operate.
The Council of Ministers also approved the creation of the Coordination Office for the North-South Railway Project (GLNS). The office will be responsible for promoting, developing, and coordinating the implementation of the project, which aims to connect the country through a continuous railway line, linking existing lines, planned extensions, and new routes. The project is expected to enhance transportation links between strategic production hubs and promote economic growth.
Furthermore, the Council of Ministers approved the creation of the Constituent Commission of the Mozambique Development Bank (CCBDM). The commission will be responsible for preparing the necessary instruments for the creation and operationalization of the bank, which is expected to play a key role in Mozambique's economic development. The bank will provide financing for development projects and support the growth of key sectors such as agriculture, industry, and mining.
The Council of Ministers also reviewed the impact of Cyclone Gazeni, which hit the country on February 13-14, 2026. According to the government's report, the cyclone caused four deaths, injured five people, and affected over 6,000 people, with 316 houses completely destroyed and 1,855 partially destroyed. The cyclone also damaged infrastructure, including schools, roads, and power lines, with over 8,000 customers still without electricity in Inhambane province.
The government has reported that since the start of the rainy season, at least 223 people have died in Mozambique, with over 860,000 people affected. The National Institute for Disaster Management (INGD) reported that the cyclone was one of the factors contributing to the high number of casualties and damage. The government has deployed teams to assess the damage and provide support to affected communities.
Key points
- The Council of Ministers approved a proposal for a Law establishing the National Payment System to enhance security and transparency.
- The government reported that Cyclone Gazeni affected over 6,000 people and caused significant damage to infrastructure.
- The Council of Ministers also approved the creation of the Mozambique Development Bank to support economic growth.
