Mozambique: $5M fund for MSMEs in Nampula, Tete and Cabo Delgado provinces

Login

Register

http://www.clubofmozambique.com/

Mozambique: $5M fund for MSMEs in Nampula, Tete and Cabo Delgado provinces

7:31 CAT | 29 Mar 2025

Photo: Conselho Executivo Provincial de Nampula

Mozambique’s government announced on Friday a $5 million fund to support micro, small and medium-sized companies (MSMEs) in the provinces of Nampula, Cabo Delgado and Tete, affected by the recent cyclones and post-election demonstrations.

“This initiative joins the others recently launched to support the cash flow and investment of micro, small and medium-sized enterprises in the private sector in Mozambique, because we know that the private sector is what energises the economy,” said the President of Mozambique, Daniel Chapo, during the launch of the Business Recovery Fund in the northern province of Nampula.

The fund, valued at $5 million (€4.6 million), has the support of the World Bank and was announced by the head of state.

Func.fb_

Chaposp.fb_

“We hope that (…) it produces the desired results, which include the resilience of our companies to shocks like these [cyclones and demonstrations], as well as the maintenance of jobs and the creation of more and better jobs, especially for women and young people,” said the Mozambican president.

Chapo called for safeguarding environmental and social issues in projects financed by public funds, justifying that the demands should be considered an “effort” to make investments “more resilient” to natural disasters.

“We would therefore like to call on our entrepreneurs to prioritise environmental and social safeguards in projects submitted for funding,” he asked.

Mozambique is in the middle of the rainy season, which runs from October to April. In addition to Chido, which hit the country on 14 December, cyclones Dikeledi, on 13 January, and Jude, on 10 March, totalled around 170 deaths.

Cyclone Jude, the most recent to affect the country, entered Mozambique through the district of Mossuril. It caused at least 43 deaths, 41 of them in Nampula, and also affected Tete, Manica, and Zambézia in the centre and Niassa and Cabo Delgado in the north.

The latest update from the National Institute for Disaster Risk Management and Reduction (INGD) indicated that at least 384,877 people were affected.

Mozambique is considered one of the countries most severely affected by global climate change. During the rainy season, it experiences cyclical floods and tropical cyclones, as well as prolonged periods of severe drought.

Since October, the country has been experiencing a climate of strong social unrest, with demonstrations and stoppages called by former candidate Venâncio Mondlane, who rejects the election results of 9 October, which gave victory to Daniel Chapo.

According to the most recent estimate by the Confederation of Economic Associations (CTA), almost a thousand Mozambican companies have been affected by the post-election demonstrations, which have impacted the economy by more than 480 million euros and created 17,000 jobs.

Since October, at least 361 people have died, including around two dozen minors, according to Plataforma Decide, a Mozambican non-governmental organisation that monitors electoral processes.

Mozambique’s government has confirmed at least 80 deaths, as well as the destruction of 1,677 commercial establishments, 177 schools and 23 health centres during the demonstrations.

Source: Lusa