Mozambique: Government seeks partnership with IDB to support SME financing
The government hopes this will lead to job creations.The Mozambican government is looking to obtain funding and technical assistance from the Islamic Development Bank (IDB) for various investment projects for small and medium-sized enterprises (SMEs), the Deputy Minister of Industry and Trade, Omar Mitha, said
"There have been successes in other countries", he said, quoted by the Mozambique News Agency. "We want funding for projects that contribute to development and to job creation".
The deputy executive director of the Confederation of Mozambican Business Associations (CTA), Eduardo Macuacua, added: “We are going to discuss alternative financing mechanism, through the opportunities made available by the IDB”, he said, adding that the loans from the IDB were advantageous because of the low interest rates charged.
This initiative should contribute to poverty reduction in Mozambique through the development of SMEs, which are considered an engine for growth in the sub-Saharan nation.
According to figures from Mozambican bank Moza Banco, SMEs account for about 78 per cent of all Mozambican companies and employ two thirds of the formal labour force.