BIO grants €11.5 million to improve SME financing in Mozambique
Banco Comercial de Investimentos (BCI), a commercial bank in Mozambique, received a $15 million envelope (€11.5 million) from Bio to increase the volume of loans granted to small and medium-sized enterprises (SMEs).The BCI will finance in local currency between 15 and 20 SMEs, thus ensuring the maintenance or creation of approximately 450 jobs, Ecofin news agency reports.
This loan also aims to demonstrate the viability of long-term financing from foreign sources, thereby improving access to finance for SMEs primarily operating in local currencies.
A Belgian investment company in developing countries, BIO supports financial institutions, investment funds, corporate and private infrastructure projects.
This initiative should contribute to poverty reduction in Mozambique and to the development of SMEs - which represent 90 per cent of companies in the country - as an engine for economic growth.