Friday, July 12, 2024
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Government creates 68.2 million dollar fund to finance MSMEs

This week, the government announced the creation of the Loan Guarantee Fund, aimed at facilitating access to credit for Micro, Small and Medium-sized Enterprises (MSMEs) in Mozambique. The fund, endowed with 4.4 billion meticais (equivalent to 68.2 million dollars), has the main objective of offering guarantees and counter-guarantees for loans taken out by these companies with national banks, with a view to more accessible interest rates.

According to the Council of Ministers’ decree, published by Lusa, the fund will be supervised by the Bank of Mozambique and will rely on strategic partnerships to ensure its sustainability and expand the supply of financial support to MSMEs. The document also emphasizes the dissemination of legal instruments that promote improvements in access to finance for this crucial segment of the economy.

The Minister of Economy and Finance, Max Tonela, highlighted the importance of the fund to strengthen the investment capacity of MSMEs in the agricultural, fish farming, agricultural marketing and processing, tourism and housing sectors. He stressed that easier access to credit contributes directly to the growth of the private sector and, consequently, to the country’s economic development.

 

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