Mozambique: ADB and IFAD provide over US$3 million for rural businesses

16 March 2009

Maputo, Mozambique, 16 March – The African Development Bank (ADB) and the International Fund for Agricultural Development (IFAD) plan to grant US$3 million to support rural funding, Macauhub has fund out from the Ministry for Planning and Development.

The amount provided by the ADB and IFAD is expected to be applied to improving access to funding by businesses that operate in rural areas.

The funding is only to be used to creative a positive institutional climate and policies that are conducive to development and the sustainable supply of rural financial services.

The funding will be managed by the Fund for Support of Economic Rehabilitation (FARE), which is a Mozambican government body.

Financial intermediaries accredited by the Bank of Mozambique will be allowed access to this funding in order to provide financial products and services, including retail banks, and micro-credit operators such as microbanks and credit cooperatives. (macauhub)