Catalytic Fund promises to revitalize Mozambican private sector

Login

Register

http://www.clubofmozambique.com/

Catalytic Fund promises to revitalize Mozambican private sector

2:17 CAT | 17 Mar 2025

File photo: O País

Last Friday, the city of Inhambane was the epicenter of an important initiative to support the private sector: the official launch of the IV Edition of the Catalytic Fund for Innovation and Demonstration.

This financing mechanism, which is part of the Mais Oportunidades Project, makes US$17 million available to small, medium and large enterprises (SMEs) in the provinces of Manica, Sofala, Gaza and Inhambane, focusing on the agribusiness, tourism and construction sectors.

The ceremony, attended by senior government figures, private sector representatives and local businesspeople, marks a new chapter in supporting sustainable economic development in Mozambique. Nelson Rodrigues, Director of Technical and Financial Assistance at the Zambezi Valley Development Agency, highlighted the relevance of this launch, which for the first time extends the Catalytic Fund to the provinces of Gaza and Inhambane. “This expansion gives a national dimension to the fund, reinforcing the commitment of the government and its partners to support companies, regardless of their geographical location,” he explained.

With the support of the World Bank, the fund aims to improve market access for SMEs through subsidized grants, allowing entrepreneurs to invest in innovative projects that generate social and economic impact. According to Rodrigues, the application process will be governed by rigorous and transparent criteria, and will be supervised by an independent Investment Committee, formed mainly by members of the private sector.
Finance Minister Carla Louveira highlighted the symbolism of the event in a context marked by severe economic challenges. “This fund comes at a crucial time, as the private sector grapples with the impacts of violent protests and a recovering economy. We are offering a powerful instrument to revitalize companies and, consequently, the national economy,” he said.

The minister also mentioned that this initiative joins other government measures, such as the recent creation of a subsidised credit line worth 10 billion meticais, aimed at supporting companies’ cash flow and investment. “We believe that, with the Catalytic Fund and other initiatives, it will be possible to create conditions for the private sector to continue playing its role as a driver of economic growth,” Louveira concluded.

Governor of Inhambane Francisco Pagula praised the province’s choice to host the event, considering it a recognition of its economic potential. “Inhambane is a land of opportunities, rich in energy and mineral resources, but also with considerable challenges in employment and the quality of life of its communities. This fund is a golden opportunity to transform our potential into economic reality,” he said.

The governor appealed to businesspeople in the province to take advantage of this unique opportunity, presenting projects that positively impact their communities and promote inclusive development.

Bruno Comini, President of the Mozambique Chamber of Commerce in Inhambane, welcomed the fund with optimism, but pointed out challenges to its implementation. “This is a clear sign that the Government is committed to supporting the private sector. However, companies will need to be well organized and comply with legal requirements to access this financing,” he said.

Comini believes the fund represents an opportunity to boost business in the province, particularly in tourism, a sector that has been hit hard in recent years. “It’s a breath of fresh air in a difficult period for business,” he added. Tour operator Armindo Hamene shared a similar sentiment. “The fund is exactly what we need. While we know it will be a competitive and demanding process, we are confident that many companies will be able to benefit from this support,” he said.

The Catalytic Fund is not just a financial mechanism, but also a tool for economic transformation. According to the data presented, the program aims to finance around 100 companies in the four provinces covered, with the potential to generate thousands of direct and indirect jobs.

Stakeholders agreed that the success of the fund will depend on the ability of entrepreneurs to present viable and impactful proposals, as well as the agility and transparency of the selection process.

For Nelson Rodrigues, the experience accumulated by the Zambezi Agency in implementing previous editions of the fund is an asset that guarantees its effectiveness and credibility. “We are determined to continue to promote sustainable economic growth through support for the private sector,” he said.

The ceremony ended with a collective call to companies to submit applications and embrace this historic opportunity. “The Catalytic Fund is not just financing; It is a commitment by the Government to the private sector and the economic future of Mozambique,” concluded the Minister of Finance.

This launch consolidates the Catalytic Fund as a strategic instrument to revitalize the private sector and boost economic development in the regions covered. With strict criteria, but with the potential to transform companies and communities, this initiative reinforces the commitment to the country’s inclusive and sustainable growth.

Source: O País