The Mozambican government has established the Integrated Development Agency for the South (Adisul), a new public institution designed to promote and mobilise domestic and foreign investment in the provinces of Maputo, Gaza and Inhambane, with the aim of stimulating the regional economy, fostering job creation and strengthening local community participation in the benefits of major development projects.

According to Lusa, the measure is contained in a decree recently approved by the Council of Ministers, which establishes Adisul as a public institute responsible for coordinating economic and social development programmes and projects in southern Mozambique.

Under the decree, one of the new body's primary mandates will be to "promote, mobilise, coordinate and monitor public and private investment, both domestic and foreign", with a view to unlocking the economic potential of the three provinces. The agency will also be required to "promote local content and strengthen local community participation in the benefits arising from the implementation of development projects", ensuring a closer link between investments undertaken and improvements in living conditions for local populations.

Among the responsibilities assigned to Adisul, the decree highlights the promotion of megaproject engagement in community development, through initiatives designed to increase the economic and social benefits associated with the exploitation of the region's resources. The new institution will also be tasked with identifying investment opportunities, mobilising financial resources and designing regional development programmes, with particular focus on strengthening value chains considered strategic to the southern economy.

In this context, the decree provides that the agency may promote the creation of special economic zones, industrial free zones, industrial parks and agro-industrial projects, as well as supporting initiatives in the agriculture, tourism, fisheries, logistics, mineral resources and blue economy sectors.

The government intends, through these measures, to reinforce regional competitiveness, stimulate employment, raise productivity and promote diversification of economic activities, through greater coordination between public and private investment. The creation of Adisul comes against a backdrop of economic and climatic challenges facing the southern region, which has been particularly affected by extreme weather events that have caused loss of life and damage to infrastructure and productive activities.

The provinces of Maputo, Gaza and Inhambane were among those most severely affected by floods recorded in January 2026. According to the latest data from the National Institute for Disaster Risk Management and Reduction (INGD), the most recent rainy season, between October 2025 and April 2026, resulted in 311 deaths and affected more than one million people across Mozambique.

Southern Region Faces Compounding Climate Risks

The southern region also faces the prospect of severe drought associated with the El Niño climate phenomenon, whose impacts could extend to mid-2027, posing further challenges to agricultural production, food security and regional economic development. Adisul, which will be headquartered in the city of Xai-Xai, Gaza province, will operate with administrative, financial and asset autonomy, drawing on its own revenue sources to fund its operations and activities.

The decree establishes that the institution may receive revenues comprising 25% of the production tax, 25% of the surface tax, 25% of the land use and benefit fee (DUAT) and 25% of inspection, re-inspection and transit fees on agricultural, forestry and wildlife products collected in the region. The decree also provides for the allocation of 1% of the natural resource and hydrocarbon exploitation concession fee, reinforcing a financing model tied to the economic exploitation of resources within the covered provinces.

Governance Structure

Regarding governance, oversight of Adisul will rest with a council chaired by the minister responsible for planning and development, and will include representatives from different government sectors as well as the governors of Maputo, Gaza and Inhambane provinces.

Executive management will be handled by a board composed of three administrators, responsible for conducting the institution's activities and implementing defined strategic guidelines. With the creation of Adisul, the government seeks to establish a regional development coordination mechanism capable of promoting alignment between large-scale investments, local economic opportunities and community needs.

The initiative forms part of the government's integrated development strategy, seeking to transform the economic potential of the three provinces into investment opportunities, employment and improved living standards for their populations.