AfDB SME Program: Enhancing Inclusive Growth and Job Creation in Mozambique
The African Development Bank Group (AfDB) and Moza Banco signed a loan agreement for the equivalent of US $9 million in Mozambique Metical (MZN) on November 14, 2014.
Approved by the AfDB’s Board of Directors in July 2013, the Africa Small and Medium Enterprises (SME) Program is a four-year, US $125-million funding program combined with a US $3.98-million technical assistance package granted by the Fund for African Private Sector Assistance (FAPA), which aims to supporting micro, small and medium enterprises (MSMEs) in Africa. SME Program will provide the necessary longer term finance and a technical assistance package to address a number of constraints faced by around 25 target financial institutions and their SME clients across Africa.
Moza Banco S.A. is one of Mozambique’s fastest-growing financial institutions with strong focus on SMEs. Moza Banco is actively present in almost all of Mozambique’s 11 provinces. The Line of Credit (LOC) will support SME sub-projects and these are well-diversified spanning all economic sectors including manufacturing, commerce/trade, services, tourism, construction, agriculture and transport, etc. Economic benefits likely to accrue from the 70 SME sub-projects to be financed under this facility and these SMEs currently have approximately 2,000 employees and are going to add 400 new employees in rural and urban areas of Mozambique. In addition, the project will induce transfer of technology, development of local entrepreneurship and enhancement of technical skills.
The government of Japan approved its co-financing support to Africa SME Program through EPSA (Enhanced Private Sector Assistance for Africa) and Moza Banco also benefits from this contribution. Moza Banco is part the AfDB’s Africa SME Program to develop and expand its SME financing activities and provide medium- to long-term financing options to local SMEs in Mozambique.