HOUSING POLICY IN MOZAMBIQUE, A BIG BUSINESS FOR POLITICIANS

Paulo Vilanculo"

Urbanization has been a global phenomenon associated with economic and social modernization. In Mozambique, particularly after independence, there has been an accelerated growth of cities, the result of several factors such as rural-urban migration, armed conflicts and the search for better living conditions (Simione, 2018). Urban expansion is always theoretically thought of for unemployed young people or for the low-income classes, but many of the housing projects are expensive, linked to business interests or even, according to critics, used for the illicit enrichment of political elites. The research is based on academic literature, newspapers and government reports from Mozambique.

Keywords:urbanization, Mozambique, politicians' business, inequalities, wild cities.

In 1976, one year after independence, the first government of Mozambique, led by Samora Machel, created the State Real Estate Administration (APIE) and decided to nationalize all real estate abandoned by the Portuguese and some assimilated people. In 2006, the Mozambique Tax Authority (AT) began to receive revenue from public properties, which meant the end of APIE. Since then, Mozambique has faced a paradox: urbanization is inevitable and necessary, but its current pace and format threaten sustainable social development. The expansion of cities and urbanization reveal an urgent need for effective public policies. Mozambique has, in fact, encouraged urbanization projects, construction of new satellite cities, relocation of populations and investments in housing.

The Joaquim Chissano Foundation, created in 2005 by President Joaquim Chissano, came up with the “Casa Jovem” project, which would involve the construction of a “citadel” of over 2,000 apartments of types 1 to 4, to be built in the Costa do Sol neighbourhood, near the Maputo coast, to “largely benefit young Mozambican urban professionals, up to the age of 40”. For the Joaquim Chissano Foundation, the “Casa Jovem” project would constitute a multifunctional hub for the expansion of the city of Maputo.

On December 10, 2020,Filipe Jacinto Nyusi, thenthePresident of the Republic of Mozambique, inaugurated and handed over, in the city of Dondo, 32 houses of phase I of the housing complex included in the Housing Program of Mozambique, a project that disappeared with its patrons. In turn, theOn October 16, 2024, the Minister of Public Works, Housing and Human Resources of Nyusi's government, Carlos Mesquita, inaugurated the housing complex for young people in the village of Metangula, Chipile neighborhood, consisting of 25 new homes, in one of its achievements, with the aim of promoting safe and resilient housing for young people, each costing a little over six hundred thousand meticais, which will be paid over 20 years, with a monthly installment of 2,700 MT.

On April 2, 2025, the current President of the Republic, Daniel Francisco Chapo, launched the housing project,entitled “Cidade-Jovem” (Young City) project to be built in the Costa do Sol neighborhood, which is expected to build nearly six thousand houses of various types for young Mozambicans, one of the most beautiful and ambitious modern cities in Africa, accessible to all segments of our population, including the low-income groups. For President Daniel Francisco Chapo, “The main objective of this policy is to facilitate the provision of adequate housing and a healthy living environment for our youth, at a cost that is affordable to all social groups, especially young people, promoting quality housing at a low cost”, as part of the fulfillment of the promise made by the statesman during the election campaign and the housing policy that foresees the promotion and facilitation, by the government, of national and foreign investments for the construction of housing complexes. 

Considering the investment costs of the most important projects for young people, the Casa Jovem Project, promoted by the Joaquim Chissano Foundation, was designed by Charas Lda. Its investment was budgeted at around 100 million US dollars and is implemented by ImoX. Carlos Mesquita's project, at the time the project cost 45 million meticais and was financed by the government. President Daniel Francisco Chapo's project is budgeted at over two billion dollars and will be implemented by the Chinese-owned Phoenix International Group. President Daniel Francisco Chapo explained at the launch of the project that "The local community, where the buildings will be built, which are mostly fishermen, will have boats, refrigerators, vans to transport fish for sale at the market, among other social responsibility actions".

President Daniel Francisco Chapo assured at the launch of his project that “This is just an act of launching the Project in our capital, Maputo, but our vision and objective is to create a replica of this type and level of housing or even more suitable for each location and the purchasing power of each location, throughout the country, over this five-year period”, he assured. In a summary perception, if the construction of 5,600 housing units will take two and a half years, for their construction, it is assumed that 11,200 units will be built in this five-year period or 22,400 housing units in the case of two terms, to equitably replicate in the 11 Provinces of Mozambique to satisfy part of the more than 10 million Mozambican population, according to the National Institute of Statistics (INE, 2023).

In rhetoric versus reality, “youth-focused” speeches often do not translate into structured public policies, with inaccessible credit lines. This can configure what is called “showcase politics,” where the idea of ​​action is promoted without effective results. At the same time, there is a frequent narrative of support for youth, especially in times of elections or social crises. Promising solutions to youth unemployment, housing, and professional training is a way to capture votes and maintain social stability. Youth as political capital represents more than 60% of the Mozambican population. “Young people are constantly invoked in political speeches, but they are rarely integrated into decision-making processes” (CIP, 2020). Therefore, they become a strategic electoral base, but also used for illicit enrichment by political elites. For example, the “social housing” project in Maputo revealed transparency failures and the properties ended up being sold at prices inaccessible to most young people.

Now, if “We want these new homes to be the beginning of a dignified and happy life for millions of other families, living witnesses of a new chapter in the urban development of Mozambique”, according to the President of the Republic of Mozambique, we must have a holistic, participatory and evidence-based approach that is crucial to providing housing for any Mozambican citizen. The lack of coordination between levels of government further compromises sustainable urbanization initiatives. Urbanization, if well managed, can be a lever for development. To this end, it is necessary to implement integrated urban planning, invest in social housing and expand access to basic infrastructure such as drinking water, sanitation and public transport (UN-Habitat, 2022).

The Housing Development Fund, FP (FFH, FP) is a Public Fund for the development and promotion of urbanization and housing, endowed with administrative, financial and patrimonial autonomy, created by Decree No. 24/95, of June 6, and governed, since May 17, 2019, by Decree No. 38/2019, becoming a Public Fund, designated as the Housing Development Fund, a Public Fund with the Mission of Promoting access to decent housing, guaranteeing safety, durability, aesthetics, comfort and health to the citizen, especially to young employees and State Agents, with a View to making Housing a Basic and Affordable Social Good for every Mozambican Family. The African Union's Agenda 2063 and the Sustainable Development Goals (SDGs), especially SDG 11, reinforce the need to make cities inclusive, safe, resilient and sustainable (UN-Habitat, 2022) and, for youth to truly benefit: Policies must be designed with real youth participation; Investments in urban expansion must include affordable housing; The focus must be on training with insertion in the market, and not on specific political events.

2025/12/3