Japan supports guarantee fund for SMEs in Mozambique

23 October 2014

The government of Mozambique, in partnership with the Japanese Agency for International Development, has created a financial security for small and medium enterprises (SMEs) with an initial allocation of US$13 million, according to Mozambican daily newspaper Notícias.

The guarantee fund is intended to support SMEs in their dealings with banks and enable applications for loans to finance their business ventures.

The announcement was made Monday by the Deputy Director General of the Institute for the Promotion of Small and Medium Enterprises (Ipeme), Adriano Chamusso at a seminar to train provincial departments of Industry and Trade and district departments of Economic Activities on the instruments to be used in support of micro, small and medium enterprises as part of the “Each District, One Product” programme.

Chamusso also said that the fund was available to interested parties through banks Millennium bim, Banco Comercial e de Investimentos (BCI), Banco Único and MozaBanco.

With the fund Ipeme wants to provide guarantees and to streamline the banks’ requirements for granting loans, as well as to provide subsidised interest rates in order to make SME investments sustainable.

The Institute for the Promotion of Small and Medium Enterprises supports and promotes micro, small and medium enterprises in Mozambique. (macauhub / MZ)