Poorly organized Mozambican companies miss out on millions – SMEs Promotion Institute

Login

Register

http://www.clubofmozambique.com/

Poorly organized Mozambican companies miss out on millions – SMEs Promotion Institute

11:46 CAT | 13 Apr 2016

O País / Former prime minister Luísa Diogo addresses the meeting

Small and medium-sized enterprises applied for only 7.8 million meticais of the 434 million the Corporate Fund for Portuguese Cooperation made available in 2014.

Last year, 11 companies applied for funding, of which four were accepted. Poor organization within enterprises is cited as the main cause of low application rates for the financing package.

The package is managed by the Institute for Small Business Promotion (IPEME), which allocates it to commercial banks to grant to businesses. The interest rate is subsidized, with the minimum loan 765,000 meticais and the maximum 11 million (US$209,804).

One of IPEME’s responsibilities is to help companies organize their business in order to become eligible, and at a Mozambique Chamber of Commerce of seminar on Monday members’ questions on how to access credit poured out.

The Mozambique Chamber of Commerce, which elected new management eight months ago, is trying to help its associates gain access to credit at a time when only 25 percent of small and medium sized enterprises register as having access to financial services.

Source: O País