This paper centers on the interface between language policy and development in Mozambique. Special attention is paid to the interplay between language and education and to the role of development agencies in language policy and planning activities in Mozambique. It displays that there has now been a discourse shift from homogenizing language policies to those that celebrate diversity and difference. However, it is asserted that in order to attain effective human development in Mozambique, in addition to Portuguese, African languages should be developed and also legitimately used as media for full participation in all dimensions of development. It is also displayed how some development agencies have been pushing the Government of Mozambique toward inclusive language policy dispensations.