Mozambique: EIB signs €5 million agreement with Moza Banco to boost SME lending
The European Investment Bank (EIB) has signed an agreement with the Mozambican bank Moza Banco last Wednesday (19 March) to support investments of small and medium-sized enterprises (SMEs).The European Investment Bank (EIB) has signed an agreement with the Mozambican bank Moza Banco last Wednesday (19 March) to support investments of small and medium-sized
The EIB will allocate €5 million to this initiative, which will be matched by Moza Banco, as part of a broader €40 million programme to foster private sector investment in Mozambique in partnership with several banks.
“The EIB is committed to supporting private sector investment in Africa, in partnership with the main local banks”, said EIB Deputy Chairperson Pim van Ballekom
in a press release.
"Job creation and company growth can only occur when small and medium companies are able to invest”, he added.
Prakash Ratilal, the chairperson of Moza Banco, said that this line of financing will play a fundamental role in the sustainable and inclusive socio-economic development of the national business class, given that SMEs account for about 78 per cent of all Mozambican companies and employ two thirds of the formal labour force.
The new programme will support investment by companies active across a broad range of sectors, such as agriculture, manufacturing, transport, tourism, health and education and is expected to help create hundreds of new jobs. Loans will be managed by Moza Bano branches across Mozambique and be provided to eligible companies in metical, US dollars and Euro.