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In Times of Great Global Transformations — Environmental, Economic, and Social — Rethinking the Development Model of African Economies, Including Mozambique, Is Not Just Necessary: It’s Urgent.

This article proposes a critical look at financial extractivism and a practical reflection on how we can move towards a sustainable regeneration model based on principles of governance, transparency, inclusion, and positive impact.

What is Financial Extractivism?

The term “financial extractivism” refers to the practice of extracting value from an economy without investing proportionally in its structural strengthening.

In contexts like Mozambique’s, this happens, for example, when:

• Large companies operate in the extractive sector (mining, gas, forestry) with low fiscal returns for the country.
• Profits and dividends generated locally are sent abroad, without significant internal circulation.
• The financial system remains distant from the productive economy, focusing on consumption and short-term debt instead of productive and social investment.
• Projects are funded based on external criteria, with little alignment to local needs and capacities.

This model results in growth without transformation: more exploitation, less inclusion; more statistics, less dignified living.

What is Sustainable Regeneration?

Sustainable regeneration is a proposed economic model that not only avoids environmental and social harm but also promotes the restoration of systems — ecological, community, and economic.

It involves:

• Reinvesting locally generated value in education, healthcare, infrastructure, and innovation.
• Strengthening local value chains with active participation from small and medium enterprises.
• Integrating sustainable financial mechanisms, such as green bonds, agricultural microcredit, climate finance, and blended finance instruments.
• Promoting responsible and efficient use of natural resources, with a focus on climate resilience and economic sovereignty.
• Stimulating financial transparency and ESG (environmental, social, and governance) principles in public and private organizations.

It’s not a distant ideal. It is a strategic and economic necessity.

The Role of CFOs and Finance in the Transition

As the founder of a community of Chief Financial Officers (CFOs), I closely observe the growing responsibility financial professionals have in repositioning companies and institutions.

CFOs are now at the heart of decisions involving:

• Sustainability reporting (including the new EU requirements, such as the ESRS — European Sustainability Reporting Standards);
• Capital allocation with impact;
• Management of climate and non-financial risks;
• Raising green and sustainable financing.

A new generation of CFOs is emerging — more strategic, more informed, and more committed to a long-term vision. ESG literacy in finance is a crucial step to unlock regenerative models.

Possible Paths for Regeneration

Here are some practical actions that economies like Mozambique’s can adopt:

1. Financial Education with an ESG Focus: From technical education to training for executives and public leaders.
2. Review of Fiscal Policies and Incentives: Prioritizing sectors with positive local and environmental impact.
3. Strengthening Local Finances: With banks focusing on regenerative agriculture, sustainable tourism, green innovation, and SMEs.
4. Capacity Building in Sustainability Reporting: Enabling companies of all sizes to adapt to new international requirements.

Conclusion

The future of Mozambique — and many other African countries — will depend on our ability to break the cycle of financial extractivism and adopt models of regeneration, redistribution, and responsibility.

This transition starts with more conscious mindsets, policies, and financial decisions. CFOs, investors, public leaders, and entrepreneurs have a central role in this change. The good news is that there has never been so much information, technology, and urgency to act.

Regeneration is not optional. It’s the only way to ensure that value stays, circulates, and truly transforms society.