US$ 4.2 million available for rural credit schemes in Mozambique

9 November 2009

Maputo, Mozambique, 9 Nov – The Mozambican government is providing US $4.2 million to fund the activities of financial institutions providing credit in rural areas, an official Maputo source told macauhub.

The funds come from the International Fund for Agricultural Development and the African Development Bank and are targeted exclusively at rural financial support programs, added the same source.

The initiative aims to improve, in a sustainable manner, access to financial services for rural companies and most people living in these areas, as well as fostering an institutional environment and policies conducive to development and sustainable supply of financial services in rural areas of Mozambique.

The program operates with three instruments; a US$ 3.5 million credit line, technical assistance of US$ 40,000 and a distribution donation of US$ 750,000.

Financial agents licensed by Mozambique’s central bank such as private banks, micro-finance operators, credit cooperatives, savings banks and micro-credit suppliers, are eligible for this funding to provide financial services. (macauhub)