The Confederation of Economic Associations of Mozambique is proposing the creation of an industrial financing line to strengthen production capacity and boost the private sector.

CTA President Álvaro Massingue suggests that the initiative be implemented through existing financial mechanisms, including commercial banks, to boost industrialization in the country.

“The CTA proposes establishing a transparent mechanism for allocating foreign currency, giving priority to industrial and agricultural importers,” said Massingue, quoted by Rádio Moçambique.

He argued that the line of financing should be through the sovereign wealth fund, the guarantee fund and commercial banks, with subsidized rates and plans adjusted to the production cycle.

The CTA president was speaking yesterday at the Second Business Environment Monitoring Council, an event that aims to assess the level of implementation of the reform priorities agreed by the government and the private sector as part of the Public-Private Dialogue.