US and Sweden support agricultural businesses in Mozambique

6 November 2014

The international development agencies of the United States and Sweden will provide US$27.25 million to support agricultural business in Mozambique, the US embassy said in a statement issued in Maputo.

USAID and the Swedish International Development Cooperation Agency (SIDA) have joined forces with Mozambican banks Moza Banco, Banco Único and Socremo to finance projects of small, medium and large domestic companies, especially agricultural companies owned by women.

“We hope that with this new partnership, there will be more recipients in productive areas of the country,” said the US Ambassador to Mozambique, Douglas Griffiths, at the presentation of the project at the American Cultural Centre in Maputo. Griffiths noted that banks in Mozambique generally demanded high rates of interest on loans and guarantees.

Two agreements were signed on 30 September including a USAID partnership with Moza Banco and Banco Único for a period of 10 years worth US$17.25 million to agricultural businesses, focused on the provinces of Tete, Nampula, Zambezia and Manica.

The second agreement, signed by SIDA and the US agency with Socremo focuses on support for micro and small rural businesses, especially those owned by women, and involves US$10 million over six years. (macauhub/MZ)