The president of the Industrial Association of Mozambique (AIMO) considers the financing cost structure offered by banks to the industrial sector to be unattractive for the materialization of concrete and sustainable projects within the framework of the revitalization of the national manufacturing industry..

According to Rogério Samo Gudo, who was speaking in an interview with AIM, the funding that currently exists in the country, "is for trade which is simpler", in a context marked by expectations and doubts about the sources of funding for the ambitious National Industrialization Programme (PRONAI) approved by the government in 2021.

"We have to look at the structure of the cost of financing, and see how we can have adequate financing for the industry," said Samo Gudo.

The president of AIMO advocated the existence of state-funded investment banks specialized in the development of industry, or specific international agencies for granting loans to the industrial sector, without looking exclusively at the question of profit.

For Samo Gudo, interest rates should be more favorable for a scale production environment, as this is a capital-intensive and long-term sector, compared to commercial activities, where the structure is lower and the life cycle is shorter.

"Industrialization costs money. We have to import machinery, infrastructure, energy, raw materials and the operation itself. In addition to wages, taxes and other elements. Here the structure is heavier and policies are needed to encourage it," he said.

The source said that his association had hoped that the National Investment Bank (BNI) would play a role in contributing to industrialization, by granting loans at interest rates appropriate to the sector's needs, but that the reality is the opposite, since the BNI, occupying 15th place in the Bank of Mozambique's ranking in terms of its systemic importance, is financially incapable of leading this process.

"BNI is just another commercial bank that we have here in the country. We expected that in a situation where a programme like PRONAI is being developed, we would have a BNI with specific products to boost industrialization, but that's not what's happening," he stressed.

In the meantime, Samo Gudo said that it is not clear where the funding for industrialization will come from, but he has good expectations of the PRONAI project, arguing that it is necessary to find appropriate ways to finance the sector, given its complexity, without neglecting the need for more tax incentives and the preparation of infrastructure to support the process, such as the national road network, which is a challenge.

"The challenge in the market means that we have to isolate the problems in order to create a new context in which we can boost industry, and this can be done through industrial parks. As we are competing with other industries, these parks need to seek efficiency in order to create a sustainable industry," he said.

The source recognizes that the national manufacturing industry is going through a dark stage, characterized by the closure of large production units that once played a crucial role, specifically during the heyday of the centralized economy, and regrets that the decline of the national industry has been precipitated by poor competitiveness.

"In practice, our industry closed down because it was no longer competitive. And that's why we've been promoting industrialization today, taking into account factors that allow our industry to be competitive in an open market context," he stressed.