Africa-Press – Mozambique. Credit institutions continue to make demands for financing which micro, small and medium-sized companies cannot satisfy, calling on them to train themselves up so as to access funds.
Two thousand one hundred and forty-seven financing providers operate in Mozambique, 89% of them microcredit operators.
Micro, small and medium-sized companies say that they still have difficulty accessing finance for their activities.
The complaints are not just from companies; credit institutions are also complaining about the lack of capacity, according to a study presented at a workshop in Maputo for financial service providers on factors that limit access to finance for micro, small and medium-sized companies (MSMEs) this Monday.
“On the one hand, we have financing service providers who say that entrepreneurs should invest more in their training and should also invest in their strategic business planning, allowing for greater clarity in what companies and the private sector want for their investment projects,” said Gonçalo Francisco, management consultant at Mazars.
“On the other hand, there is a mismatch between the capacity of the companies and the requirements of the institutions.
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The findings are not new.
The results reveal that, this year, only 60% of the business sector had access to funds from credit institutions.
“The guarantee levels are also complicated; the process, the paperwork, the business plan – some of these elements are important matters for the Chamber of Commerce of Mozambique, because it will help our institution to design a support program for these institutions,” said Hipólito Hamela, financial manager at the Mozambique Chamber of Commerce.
In addition to the lack of financing, high interest rates limit the functioning of micro, small and medium-sized companies.
But there is already a proposal for a solution.
“It is necessary to arrange some incentives and mechanisms so that entrepreneurs can benefit from subsidised interest rates,” Gonçalo Francisco suggested.
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