French cooperation shares risks in lending to SMEs in Mozambique

18 March 2015

The French Development Agency (AFD) will share the risks associated with loans granted by BancABC to small and medium enterprises (SMEs) in Mozambique, under an agreement signed in Maputo, the Mozambican press reported.

Through this agreement, AFD guarantees 50 percent of loans granted by BanABC to SMEs for the acquisition or creation of assets in any economic sector, denominated in dollars or meticais and which fall in the range between 400,000 and 12 million meticais, to a maximum guaranteed amount of 2 million euros.

The managing director of BancABC Mozambique, Hélder Chambisse, said the agreement reflects “the interest and the bank’s willingness to cooperate with the Mozambican authorities and with cooperation partners to find ways to increase funding for this important segment of the Mozambican economy: SMEs. ”

“It’s a vast segment, with an estimated figure of just over 38,000 operators of different sizes, covering all sectors of economic activity and employing about 190,000 workers and whose weight and importance in the economy contrasts with the difficulties faced in its activity in particular in securing financing from commercial banks and investment for working capital,” he said. (macauhub/MZ)