Millennium bim, a leading credit institution in Mozambique, and Empresa Nacional de Hidrocarbonetos (ENH), the state's commercial arm in the oil and gas industry, are pleased to announce the signing of a strategic Memorandum of Understanding (MoU) on August 1, 2023, in Maputo, marking an important commitment to the country's economic development and the promotion of local content in the oil and gas industry, as well as leveraging the organizational, technical and financial capacities of Mozambican Small and Medium Enterprises (SMEs).

The MoU was signed by Millennium bim's Chief Executive Officer (CEO), João Martins, and ENH's Chairman of the Board of Directors (CEO), Estêvão Pale.

This partnership aims to strengthen the collaboration between Millennium bim and ENH, with a focus on the successful implementation of the LinKar Program, a pioneering ENH initiative with the central vision of transforming the country economically by stimulating and facilitating productive connections between SMEs and evolving oil and gas companies, thus multiplying national benefits and investments in the sector.

Main provisions of the Memorandum of Understanding:

1. Development of local content: The MoU aims to promote local content in the oil and gas industry, enabling Mozambican SMEs to actively participate in the sector. Implemented by ENH, the eight-year LinKar Program aims to work collaboratively and constructively towards the consolidation and participation of the national business community in the gas industry, as well as in other industries with major projects underway in the country.
2. Access to financial products and services: Millennium bim will grant special access conditions to the financial products and services offered to SMEs previously identified by ENH under the Linkar Program. This includes financial assistance for activities related to the supply chain, support in obtaining essential certifications for competitiveness in the value chain, as well as access to training, capacity building and activities led by the Bank for preferred clients.

3. Empowerment of young people and women: The LinKar Program is committed to promoting the empowerment of women, setting a specific target of 30% of gains/benefits for Women in Business (WBs) involved in the program. This initiative aims to encourage the active participation of Mozambican women in the oil and gas sector, contributing to more inclusive and sustainable economic growth.

On the occasion of the signing of the memorandum, Millennium bim's CEO, João Martins, said that "We are excited to enter into this strategic partnership with ENH through this Memorandum of Understanding. This collaboration is a significant milestone for Millennium bim, as it allows us to actively contribute to Mozambique's economic development and support the innovative LinKar Program initiative. We are committed to providing special conditions of access to our financial products and services for the Small and Medium Enterprises identified by ENH, with a view to fostering the growth of local content in the oil and gas industry. Together, we hope to drive sustainable progress and create opportunities for the Mozambican business community".

For his part, ENH's PCA, Estevão Pale, pointed out that "this Memorandum of Understanding plays a fundamental role because, through it, Mozambican SMEs will have access to Millennium BIM's financial services under preferential conditions."

"Let's work together, ENH and Millennium BIM, to create opportunities and favorable conditions so that SMEs can offer quality services and develop the national oil industry; and likewise, so that SMEs can prosper and actively contribute to the sustainable growth of our country. We would like to thank Millennium BIM for sharing this vision and for their willingness to support Mozambican SMEs. We are sure that this partnership will be fruitful and bring significant benefits to all parties involved.".

The MoU between the Bank and ENH enters into force on August 1st, the date it was signed, and will remain in force for a period of one year.