Mozambique: Government sets up National Recovery Fund

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Mozambique: Government sets up National Recovery Fund

12:58 CAT | 16 Apr 2025

Photo: Evidencias

The Mozambican Council of Ministers (Cabinet), meeting in Maputo on Tuesday, approved a decree which institutes the National Recovery Fund.

This fund, with an initial endowment of 319.5 million meticais (about five million US dollars, at the current exchange rate) is supported by the government’s international partners, including the World Bank.

The government spokesperson, and Minister of Planning and Development, Salim Vala, told reporters that the main purpose of the fund is to ensure financing for micro, small and medium companies, as well as productive sectors with a high potential for economic growth.

The fund will support job creation and an increase in national income through granting beneficiary companies loans at favourable interest rates.

Those eligible, Vala said, are “small and medium companies directly affected by the economic adversities of the past year, but who possess viable business plans and are still operating. The favourable interest rate will allow these companies to resume their activities more rapidly”.

The main “economic adversity” was the wave of rioting and looting following the announcement in December of general election results widely believed to be fraudulent.

The Council of Ministers also approved a National Road Safety Action Plan, intended to reduce dramatically road accidents at critical points and to promote safer and more sustainable mobility.

The plan prioritises interventions at 28 places along the main national highways in Maputo, Gaza, Inhambane, Sofala, Manica, Tete and Nampula provinces.

The actions envisaged include intensive inspection of vehicles, education and awareness campaigns, and the creation of a pilot post-accident care centre in Manhica district (about 90 kilometres north of Maputo, where some of the worst recent accidents have occurred along the main north-south highway, EN1).

“This plan doesn’t create new sanctions, but it strengthens the existing mechanisms, already envisaged in the Highway Code as a focus for inspections and for involving society in the prevention of accidents”, said Vala.