Mozambique: Launch of financing lines for the revival of companies in Cabo Delgado – Watch

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Mozambique: Launch of financing lines for the revival of companies in Cabo Delgado – Watch

10:33 CAT | 31 Jan 2022

Image: IPEME

As part of the Cabo Delgado Reconstruction Plan, the Ministry of Industry and Commerce, through the Institute for the Promotion of Small and Medium Enterprises in partnership with the Northern Development Agency (ADIN) and the Cabo Delgado Business Council, on Friday launched the Private Sector Relaunch Program Financing Lines (PRSPIII) in the city of Pemba.

In a statement made available to Carta, it is stated that, with this program, the government essentially aims to make financial resources available to local micro-credit institutions to finance and support micro, small and medium-sized companies (SMEs) with subsidised credit lines, for the recovery of economic activity and revival of rural commercial enterprises in the districts affected by the terrorist attacks.

These credit lines could bring relief to dozens of companies affected by terrorism in Cabo Delgado.

The launch event, which consisted of the presentation of the Program’s Operational Model and the symbolic delivery of checks to beneficiaries, was led by the Minister of Industry and Commerce, Carlos Mesquita. The event was be attended by the Secretary of State, António Njanje, Governor Valige Tauabo and Taimo Supeia, chairman of the Northern Development Agency (ADIN), alongside members of the Cabo Delgado Provincial Business Council (CEP), members of staff from the Ministry of Industry and Commerce, among other guests.

Minister Mesquita’s agenda included visits to the districts of Chiúre and Metuge, where he established contacts with local economic agents, as well as visiting various factories, with the emphasis on one alcohol and one cement production facilities.

One month after the March 24 attack on the town of Palma, the Confederation of Economic Associations of Mozambique (CTA) reported the demise of 410 companies and 56,000 jobs, and a preliminary financial impact of around US$148.11 million, covering destruction, payment delays and goods in transit with no certainty of delivery to Total, which leads the natural gas project in Area 1 of the Rovuma Basin.

Source: Carta de Moçambique / IPEME