What You Need to Know
The Mozambican Ministry of Planning and Development has partnered with Moza Banco to launch an $11 million financing line aimed at supporting rural development projects. This initiative targets small and medium-sized enterprises (SMEs) and aims to enhance the rural economy by providing financial resources to companies in rural areas, where 65% of the population resides. The program emphasizes the
Africa-Press – Mozambique. The Mozambican Ministry of Planning and Development and Moza Banco, one of the country’s commercial banks, on Monday signed an agreement aimed at funding rural development projects.
The project, which is part of the Financing line for Rural Enterprises (LFER), is budgeted at 11 million US dollars.
According to the Minister of Planning and Development, Salim Vala, the funding line is aimed at boosting the rural economy and promoting job opportunities.
“These resources are to provide financial support to companies and rural enterprises. We know that in Mozambique 65 per cent of the population lives in rural areas, and that is where the great potential for the economic development of our country lies. But this initiative is also geared towards Small and Medium-sized Enterprises (SMEs)”, he said.
He claimed that “SMEs today represent more than 95 per cent of the Mozambican economic landscape.”
According to the minister, the beneficiaries of this credit line have the mission of ensuring its continuity through repaying their loans.
“We know that access to financing is one of the biggest constraints on the growth of agricultural supply chains and rural entrepreneurs. It is precisely to respond to this challenge that the LFER was created”, he said.
“We want to ensure that credit arrives in a structured, transparent and sustainable way, allowing productive projects to flourish and the positive impact to spread throughout the community”, he added.
Valá warned that without repayment, “it will not be possible to expand the fund to other beneficiaries.”
For his part, Manuel Soares, representative of the Executive Committee of Moza Banco, said that his institution will take responsibility for managing the line of credit, as the intermediary between the resources made available and the final beneficiaries.
He declared that each cent applied will be aligned with rigorous technical criteria and the highest standards of integrity and transparency.
Mozambique has a significant portion of its population living in rural areas, making rural development crucial for the country’s economic growth. The government recognizes that small and medium-sized enterprises (SMEs) play a vital role in the economy, representing over 95% of the economic landscape. Access to financing has been a major barrier for rural entrepreneurs, prompting the creation of initiatives like the Financing line for Rural Enterprises (LFER) to address these challenges. This program aims to ensure sustainable economic development in rural communities through structured financial support.
