Small and Medium-sized Enterprises (SMEs) will benefit from 120 million dollars in funding from a Loan Guarantee Fund that is being prepared by the government.

The NewsAccording to the report, the information is included in the balance of the Economic and Social Plan of the 2023 State Budget, drawn up by the Ministry of Economy and Finance. According to the plan, a proposal for the decree creating the fund is being finalized and will be submitted to the Council of Ministers for consideration and approval.

The preparation of the business plan for the operationalization of the fund is also underway.

The creation of the Loan Guarantee Fund was approved in April at the proposal of the World Bank, under the "More Opportunities" project, valued at 300 million dollars.

The newspaper recalls the Minister of Economy and Finance's explanation of the fund, according to which the aim is to enable Mozambican banks to make financial resources available to strengthen investment capacity at more affordable rates for SMEs.

The fund will be aimed at selected companies in the agriculture, agricultural marketing and processing, fish farming, tourism and housing sectors.