The United Bank for Africa (UBA) and CTA have just launched a 50 million dollar financing line to support Micro, Small and Medium Enterprises (MSMEs), with a focus on the agro-processing, automotive, pharmaceutical, transport and logistics sectors.

The amount will be allocated to financing projects for micro, small and medium-sized Mozambican companies, starting at 150 thousand dollars.

The launch was marked by the signing of a Memorandum of Understanding formalizing this partnership between CTA, represented by its President Agostinho Vuma, and UBA, represented by CEO Rotimi Morohunfola.

The line has advantages, especially in terms of cost, where it offers subsidized prices of prime rate minus 1 for the purchase of equipment over a maximum period of 4 years.

Despite the fact that SMEs represent around 98% of the business structure, and will contribute around 48% of the jobs in Mozambique in 2022 (according to data from the National Statistics Institute - INE), access to finance for this segment of companies is pointed out as one of the most significant limitations to their development.

In this vein, the President of the CTA, Agostinho Vuma, considers that this line of financing will boost national MSMEs and believes that, through this partnership with UBA, many companies will be able to benefit from the financing packages available from that Nigerian-owned financial institution.

For his part, UBA's CEO, Rotimi Morohunfola, said that the Bank decided to embark on this partnership with CTA because it is the umbrella of the Mozambican private sector, and reaffirmed the Bank's interest in supporting the growth of Mozambican MSMEs.