Rehabilitation of SMEs: Gapi and FAN create post-Idai Special Fund

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Rehabilitation of SMEs: Gapi and FAN create post-Idai Special Fund

2:08 CAT | 22 Apr 2019

Photo: Supplied

The creation and implementation of a “post-Idai Special Fund for the Rehabilitation of Small and Medium Enterprises (SMEs) and the relaunch of the small-scale private sector” is the first joint action between the Foundation for the Improvement of the Business Environment (FAN) and Gapi-Sociedade de Investimentos (Gapi-SI), within the framework of a partnership between the two institutions signed on 28 March.

Gapi-SI has so far mobilised around 52 million meticais to fund the initiative.

Under this partnership, “both institutions have decided to join forces and raise additional resources so that, in coordination with public authorities mandated to lead the post-cyclone reconstruction programme, a more comprehensive and effective contribution will be made to relaunching the social and economic life of the Central Region of Mozambique”.

The FAN-Gapi partnership, recently signed by Leonardo Simão and Luís Sitoe, the presidents of the respective boards of directors, provides for the two institutions to operate in a coordinated manner throughout the country through the joint design and implementation of specific projects.

The projects to be supported will contribute to the expansion and consolidation of the role of the private sector, with a particular focus on small and medium-sized enterprises, generating sustainable jobs and improving incomes.

The fund will provide low-interest credit and technical assistance to help companies recover from the losses they have suffered, and encourage small business to revive economic activity in the central region of the country.

“FAN is highly motivated towards participating in this collective effort to normalise the life of the Mozambican business community in the areas affected by Cyclone Idai,” Leonardo Simão said.

Gapi-SI’s Luís Sitoe added: “This partnership between FAN and Gapi-SI has been established at just the right time, and will leverage the strengths of the two institutions to provide more robust responses to the challenges of economic and social development in Mozambique, with a focus on the most vulnerable parts of the population.”

The two institutions are already working on the preparation of several other programmes having as their common denominator the structuring of value chains and economic sectors relevant to improving the incomes of the population in rural areas.

Source: A Verdade