Mozambique: Gapi reinforces its commitment to agricultural marketing and disburses 15 million meticais

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Mozambique: Gapi reinforces its commitment to agricultural marketing and disburses 15 million meticais

12:37 CAT | 27 May 2025

Photo: Gapi Mozambique

Gapi has once again responded to the initiative to transform agricultural marketing into a fundamental pillar for the sustainable development of national agriculture. At the official launch of the agricultural marketing campaign, which took place on 15 May with the participation of the President of the Republic in Sussundenga, Manica province, this development finance institution financed 10 small businesses with an amount of around 15 million meticais in various regions of the country.

Through a financial instrument called the Agricultural Marketing Credit Line (LCCA), which was established in 2018 and has been in operation since the mandate of the then Minister of Industry and Commerce, Ragendra de Sousa, Gapi regularly intervenes in financing small rural traders who play an active role in structuring the agricultural value chain.

In addition to the financing for marketing provided for in the LCCA, the agreement between Gapi and the Government includes technical assistance activities aimed at creating and training small and medium-sized agricultural marketing and agro-processing operators. Through these initiatives, the aim is to strengthen the sector’s competitiveness, promote good commercial practices and increase agricultural production and processing capacity, ensuring greater efficiency and sustainability for rural businesses.

A Gapi manager highlighted the importance of this financing mechanism, stressing that “it is essential that the Government reinforces the capacity of this credit line in order to better serve the objectives for which it was created. At the moment, the line is regressing due to lack of capitalization by the Government partner” . This appeal reinforces the need for a joint effort to ensure the continuity and expansion of financing for the agricultural sector, which is essential for economic growth and the well-being of rural communities.

Since the start of the program’s implementation, LCCA has financed 442.7 million meticais to 365 beneficiaries throughout the country, with approximately 95% of this financing (416.5 million meticais) being directed to agricultural marketing activities, enabling the marketing of around 260 thousand tons of cereals and various legumes, including corn, beans, sesame, soybeans and peanuts. At the same time, 27 credit operations, totaling 26.2 million meticais, were earmarked for agro-processing, which represents 5% of the total volume of credit granted.

The financing provided by LCCA was responsible for the creation of around 1,500 jobs, of which 664 are for women (44%). These jobs reflect the direct impact of the programme on boosting the rural economy and generating income for agricultural producers, contributing to poverty reduction and the sustainable development of the sector.

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