The Resilience Fund for Micro, Small and Medium-sized Enterprises (MSMEs) affected by cyclones and pandemics is already up and running. In the first three months of activity, characterized by actions to test the instruments, 42 small businesses have already been financed with around 32 million meticais.

According to a press release sent to our newsroom, this instrument is a partnership between USAID, through its SPEED project, and Gapi, through its national network.

The implementation of the Resilience Fund follows a strategy that prioritizes the areas most affected by cyclones, as well as the centers where the Covid-19 pandemic has had the greatest negative impact on small businesses.

The USAID-Gapi partnership also set out to pay attention to companies owned or run by women and young people.

To respond to the complexity of these multiple objectives, Gapi had to introduce new procedures and capabilities into the implementation network.

"In about three months of operating the fund, we have been improving our ability to better identify and cover the pre-defined segments, using for this purpose our network and tools spread throughout the country that allow us to ensure geographical and cultural proximity, so that the final product responds to the demand and specific needs of each place," explained Nância Macaringue, coordinator of this fund quoted in the note.

In line with the established strategy and objectives, around 70% of the funding granted went to companies in the agriculture and agribusiness sectors. The total number of companies owned or managed by women and young people stands at 33%.

"We're working to make these indicators for priority sectors and social segments even better over the next three months. We hope to significantly increase the number of beneficiaries and the amounts financed, as a result not only of the experience gained in the first three months, but also of the efforts we are making to make this product more widespread and public," continued Nância Macaringue, while reiterating the revolving nature of the fund and the need for greater accountability on the part of the beneficiaries:

"You have to understand that money that creates impact is money that is obtained and managed responsibly. Applicants must understand that these loans, which have a subsidized interest rate, must be returned to benefit other interested parties. Therefore, the responsible nature and good reputation of the candidates are indispensable premises in the evaluation processes in order to be able to access funding."

As it is implemented, actions to monitor and evaluate the impacts generated will be carried out by specialized teams involving the two implementing partners and an Advisory Board made up of independent and reputable evaluators.

Gapi's Executive Committee believes that, despite the enormous complexity and risk involved in implementing this instrument, there is also a learning challenge in this experience for this development finance institution to strengthen its capacity to have a positive impact on sectors and segments that cannot be ignored by the financial services sector.

It should be noted that the Resilience Fund was set up in March of this year with an amount of 4.5 million US dollars, of which 10% is a direct contribution from Gapi.

The Resilience Fund for Micro, Small and Medium-sized Enterprises (MSMEs) affected by cyclones and pandemics is already up and running. In the first three months of activity, characterized by actions to test the instruments, 42 small businesses have already been financed with around 32 million meticais.

This instrument is a partnership between USAID, through its SPEED project, and Gapi, through its national network.

The implementation of the Resilience Fund follows a strategy that prioritizes the areas most affected by cyclones, as well as the centers where the Covid-19 pandemic has had the greatest negative impact on small businesses.

The USAID-Gapi partnership also set out to pay attention to companies owned or run by women and young people.

To respond to the complexity of these multiple objectives, Gapi had to introduce new procedures and capabilities into the implementation network.

"In about three months of operating the fund, we have been improving our ability to better identify and cover the pre-defined segments, using our network and tools spread throughout the country to ensure geographical and cultural proximity, so that the final product responds to the demand and specific needs of each place," explained Nância Macaringue, the fund's coordinator.

In line with the established strategy and objectives, around 70% of the funding granted went to companies in the agriculture and agribusiness sectors. The total number of companies owned or managed by women and young people stands at 33%.

"We're working to make these indicators for priority sectors and social segments even better over the next three months. We hope to significantly increase the number of beneficiaries and the amounts financed, as a result not only of the experience gained in the first three months, but also of the efforts we are making to make this product more widespread and public," continued Nância Macaringue, while reiterating the revolving nature of the fund and the need for greater accountability on the part of the beneficiaries:

"You have to understand that money that creates impact is money that is obtained and managed responsibly. Applicants must understand that these loans, which have a subsidized interest rate, must be returned to benefit other interested parties. Therefore, the responsible nature and good reputation of the candidates are indispensable premises in the evaluation processes in order to be able to access funding."

As it is implemented, actions to monitor and evaluate the impacts generated will be carried out by specialized teams involving the two implementing partners and an Advisory Board made up of independent and reputable evaluators.

Gapi's Executive Committee believes that, despite the enormous complexity and risk involved in implementing this instrument, there is also a learning challenge in this experience for this development finance institution to strengthen its capacity to have a positive impact on sectors and segments that cannot be ignored by the financial services sector.

It should be noted that the Resilience Fund was set up in March of this year with an amount of 4.5 million US dollars, of which 10% is a direct contribution from Gapi.