Mozambique: Chapo launches fund for SMEs – AIM

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Mozambique: Chapo launches fund for SMEs – AIM

12:46 CAT | 26 Aug 2025

Photo: Presidency

Mozambican President Daniel Chapo on Monday launched the Mutual Guarantee Fund (FGM), which is aimed at supporting the country’s Small and Medium-Sized Enterprises (SMEs).

The fund, which in its initial phase is budgeted at 40 million dollars disbursed by the World Bank, is part of the Economic Acceleration Package (PAE) introduced three years ago.

The PAE consists of 20 reform measures aimed at resuming and boosting economic growth, which had stagnated as a result of various factors, including the Covid-19 pandemic and the suspension of support from cooperation partners to the State Budget, following the scandal of the “hidden debts”.

According to the President, who was speaking at the launch of the 60th edition of the Maputo International Fair (FACIM 2025) at the Ricatla International Fair and Exhibition Centre, in Marracuene district, about 30 kilometers north of Maputo, the fund could directly benefit approximately 15,000 SMEs, particularly those run by young people.

“This instrument is not just a financial mechanism; it is a bridge to the recovery of the Mozambican economy. It is an opportunity to transform the dreams of our youth into businesses and ideas into jobs for young people”, he said.

The President encouraged the country’s banking system to support the project “through transparent and inclusive mechanisms so that the fund may quickly reach those who need it most.”

“We know that the lack of collateral and high interest rates have been almost insurmountable barriers for small and medium-sized enterprises, which represent the heart of the national business sector. This fund is dedicated to small and medium-sized enterprises, because they account for 90 percent of the dynamism of our economy, generating income and employment, especially for young people”, he said.

Chapo explained that the government chose FACIM as the venue for the launch “because this is the largest and the most important promotional showcase in the country.”

“We reaffirm the commitment of the Mozambican State and the government, which we are leading, to expand access to this instrument and facilitate financing for our national companies, especially SMEs”, he said.

The 60th edition of FACIM, which is taking place under the slogan: “Promoting Economic Diversification towards Sustainable and Competitive Development in Mozambique”, features a total of 2,350 Mozambican exhibitors and 800 foreign exhibitors from 30 countries around the world.

Source: AIM