UK announces US$20 million credit line for SMEs in Mozambique

18 February 2014

The government of the United Kingdom plans to provide US$20 million for rural development projects in Mozambique to micro, small and medium-sized enterprises, the UK Department for International Development announced.

The credit line is intended to increase the productivity and competitiveness of Mozambican entrepreneurs. It is also focused on developing rural areas at a time when Mozambique is experiencing significant economic growth based on exploration of natural resources.

Over the next five years Mozambican companies can present projects to the Department for International Development (DFID), which should focus on reducing poverty in rural areas and sustainable management of natural resources.

The project also includes funding to expand financial services to rural areas, particularly those that bolster agricultural and trade activities.

The announcement of the credit line from the UK follows a visit last week by a business mission to Mozambique made up of 26 businesspeople.

The businesspeople took part in the Mozambique-United Kingdom Business Forum focused on presenting the potential of the energy, oil and gas sectors in Mozambique. (macauhub)