Mozambique farmers get credit boost
The Mozambican government is to introduce a $25 million (€19.2 million) agricultural credit line that will potentially improve access to finance for farmers in the country.Citing a report in the Maputo daily newspaper Noticias, All Africa reports that the funding will be made available to food producers to help them raise crop output as part of efforts to meet the goals of the Action Plan for the Reduction of Absolute Poverty.
Standard Bank will manage the supply of credit, Agriculture Minister Soares Nhaca was quoted as saying, adding the money will carry favourable interest rates in order to encourage interest among agricultural producers.
"In the coming days we will evaluate this agricultural campaign and announce the availability of these lines and also indicate the conditions under which producers can have access to the money made available," he remarked.
A similar move was recently made in Nigeria, where the country's central bank reached an agreement with the Alliance for a Green Revolution in Africa that will see $500 million invested in a scheme to improve access to finance for farmers.