Mozambique’s leadership is considering the creation of a national defense fund to finance its military, as part of a government policy aimed at reducing direct defense spending.
Turkey’s model could serve as an example, as Ankara established the “Defense Industries Support Fund” in 2021 to bolster its military sector, allocating a portion of tax revenues to it. In 2024, the Turkish government proposed levying fees on credit cards and other sectors of the economy to strengthen the fund with $2 billion, in addition to revenues from the sale of drones.
In this context, the Coordinating Council of Mozambique’s Ministry of National Defense recently held a meeting attended by Thomas Matola, Chairman of Cahora Bassa Hydroelectric, who suggested adopting a similar strategy that combines funding from the national budget, donations, partnerships, and other revenue sources.
Mozambique’s army consists of approximately 14,200 soldiers, and its defense budget gradually increased between 2020 and 2024 to reach $491 million, before dropping to $321.6 million in 2025.
Matola pointed out that the lack of security limits investment by companies in Mozambique, despite the country’s vast natural resources in Cabo Delgado, including significant gas deposits. He noted that the French company TotalEnergies established a processing facility in the region in 2018, but operations were halted in 2021 after a terrorist attack on the city of Palma. In September 2025, the company announced support for $10 million in economic investments to restart the facility and provide job opportunities in agriculture, fishing, education, healthcare, biodiversity, and local trade.
Meanwhile, Ferhat Alkan, Turkey’s ambassador to Mozambique, stated that Turkey established its national defense fund to strengthen its efforts in combating terrorism.
Matola suggested that Mozambique’s defense fund should not be limited to supporting the military and defense industry, but could also be used to stimulate economic growth in sectors such as agriculture, mining, housing, and tourism, contributing to national stability and development.