The Mozambican government has opened up a line of credit worth 120 million meticals (3 million euros) to support small and medium sized enterprises in the agricultural sector with difficulty accessing retail credit, the Minister for Industry and Trade said in Maputo.
The credit was provided by Italy and is valid for a period of three years, funding food production, sale and agricultural services, agro-industry and financial leasing in the provinces of Sofala, Manica and Zambézia.
After signing the Second Agreement to Re-launch the Private Sector (PRSP II) and the Regulations on Credit Operations with the Millennium bim and Moza banks, Minister Armando Inroga said that the funding was intended to increase production and agricultural yield, which are targets set out in Strategic Plan for the Agricultural Sector.
According to Inroga, the funds are from repayments made as part of a similar programme (PRSP I), carried out between 2000 and 2004, and rates of interest charged as part of this new credit line will be kept to between 10 and 12 percent.
Inroga also said that following the contract signed with retail banks the credit line can begin to be used. (macauhub)