Mozambique: Maputo province to acquire 21 agricultural tractors during this five-year term - report
Mozambican government provides €13 million credit line for agricultural sector
8:16 CAT | 06 Nov 2020
Photo: MADER
The Ministry of Agriculture and Rural Development will, through Moza Banco and within the framework of the Sustenta programme, provide a 1.1 billion meticais (€13 million) credit line for the agribusiness sector.
“This fund includes a credit line designed to support the agribusiness sector, and is coupled with a non-refundable grant component which translates into a contribution in funds to support the strengthening of the equity of those business units,” a note from Moza Banco released yesterday reads.
The agreement making the credit line available was signed in Maputo on Wednesday between Moza Banco and the Ministry of Agriculture and Rural Development’s National Fund for Sustainable Development [FNDS].
The Sustenta programme, financed at US$500 million by the World Bank and initially launched in 2017 in Nampula and Zambézia provinces, provides capacity, seeds and production strategies, as well as financing, to small farmers in the country.
Among Sustenta’s objectives are increasing the income of beneficiary families and the generation of about 200,000 jobs.
Most of Mozambique’s population live in rural areas and rely on subsistence agriculture for survival.
The Mozambican government, which has defined agriculture as a priority for the economy, sees industrialisation of the agriculture sector and investing in commercialisation as among its main challenges.
According to official figures, the government will provide a total of 12 billion meticais (€140 million) in public investment for the 2020/2021 agricultural campaign.
Source: MMO
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