COVID-19: Portugal announces support for Mozambican companies

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COVID-19: Portugal announces support for Mozambican companies

1:51 CAT | 18 May 2020

File photo: O País

The Portuguese government announced this Thursday that it will support Mozambican micro, small and medium-sized companies affected by the Covid-19 pandemic. The Lisbon aid also extends to humanitarian sectors.

Mozambique is just one of the Portuguese-speaking countries in Africa that will benefit from Portuguese government financial support lines aimed at mitigating the impact of the new coronavirus pandemic.

In a statement sent this Thursday to ‘O País’, the Portuguese embassy in Maputo announces that Portugal will provide financing lines in the amount of 1.8 million Euros to African Portuguese Speaking Countries (PALOP).

Mozambique’s private sector, which has been facing very negative consequences on its economic activity, will benefit from direct support, as will the education and nutrition sectors.

Portuguese support for Mozambican companies consists of redirecting 40% of the Portuguese Cooperation Business Fund (FECOP) to support Mozambican micro, small and medium-sized enterprises (MSMEs) facing cash and liquidity difficulties as a result of the Covid-19 pandemic.

FECOP has as partners the Mozambican Banking Association and IPEME [Institute for Promotion of Small and Medium Enterprises], and is operated in partnership with three Mozambican banks: the Banco Comercial e de Investimentos, Millennium bim and Moza Banco.

In the education sector, Mozambique will benefit from 250,000 Euros made available to the Education Sector Support Fund (FASE).

Portugal will disburse its contribution to this fund immediately, taking into account the prevention and response measures adopted by the Mozambican government, and particularly the goals defined in the Response Plan prepared by the Ministry of Education and Human Development to guarantee the continuity of the academic year, with all the challenges inherent in the closure of schools decreed on March 23 of this year.

In addition to the aid to companies and the education sector, there is also, the press release from the Portuguese embassy in Maputo reveals, a fund of €30,000 for the Covid-19 Response Plan presented by the World Food Program-directed nutrition programmes that ended with the closure of schools.

“Portugal maintains a firm commitment to Mozambique, both in terms of cooperation for development, investment and job creation, and in response to natural disasters plaguing the country, as was the case with cyclones Idai and Kenneth in 2019, providing humanitarian aid, in its various aspects, but also support to companies affected by these calamities through the FECOP and INVESTIMOZ financing lines,” the Embassy of Portugal statement reads.

By Edson Arante

Source: O País