Concession of loans encourages cashew processing industry in Mozambique

13 July 2009

Maputo, Mozambique, 13 July – The cashew industry in Mozambique in the last five years has benefitted from a credit line of US$50 million guaranteed by the Government, said the Minister for Industry and Trade, António Fernando.

Saying that the credit line mainly aimed to provide easier access to funds by small and medium-sized companies, the minister noted that 24 cashew processing companies had “re-emerged” in the country.

According to Fernando, the cashew industry directly employs some 6,700 people, and the sector has a “significantly positive” social and economic impact in the provinces that produce cashews, including the northern provinces of Nampula and Cabo Delgado.

In Mozambique the cashew processing industry is now recovering by making use of smaller scale production technologies, at a lower cost, both in terms of investment and maintenance, as well as an intensive workforce.

As well as this US$50 million credit line the Government has opened up several other special credit lines, specifically the Fund to Boost Small-scale Industry to the value of 40 million meticals, and the Fund for Support of Economic Rehabilitation (FARE), which is mainly aimed at rebuilding rural canteens and stores, which is expected to cost 21 million meticals.

Fernando announced that credit lines had also been opened for the Fund to Support Small Companies, to the value of 55 million meticals, and for a fund to support farmers in buying agricultural equipment, estimated at over 100 million meticals.

“These funds are not enough, but are an example of the Government’s efforts to provide entrepreneurs with financial resources,” the minister said, adding that as a result of these efforts several different companies were operating in different regions of the country. (macauhub)