Germany makes €17.5 million available to Mozambican companies

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Germany makes €17.5 million available to Mozambican companies

4:27 CAT | 16 Dec 2020

Photo: O País

The German Financial Cooperation, through the KfW Development Bank, will disburse a total of €17.5 million to Mozambican micro, small and medium enterprises (MSMEs), the Bank of Mozambique announced yesterday in a statement.

Of the total amount, which will be channelled through the Bank of Mozambique, €6 million is earmarked for emergency support to help micro, small and medium-sized companies counter the impact of Covid-19.

“The Covid-19 emergency subsidy mechanism, worth €6 million in local currency, is non-refundable and is available for micro, small and medium-sized companies affected by the pandemic, with the aim of mitigating the pandemic’s impact and helping MPMEs survive,” the statement from the Mozambican central bank explains.

The agreement, signed today between the Mozambican central bank and German Cooperation, also provides a €9 million credit line for micro, small and medium-sized companies.

“The credit line will provide long-term financing in local currency with economically sustainable terms and conditions. The funds will help companies finance the necessary investments after the pandemic to allow the reconstruction or growth of business activity,” the document adds.

An amount of €2.5 million is also foreseen for the technical assistance of small and medium-sized companies covered by the credit line, the document further details.

Source: Lusa