La Caja Foundation and Gapi have recently committed themselves, to create more capacity for the progress and well-being of the population living in the rural areas of Northern Mozambique, in particular and urgently in the areas affected by terrorism.

The experience of six months of work in the implementation in Cabo Delgado of a pilot project called "W4P" - Work For Progress - was the central theme of a meeting of a delegation from the La Caja Foundation, headed by Infanta Cristina of Spain and the Executive Committee of Gapi.

"We concluded that, together and in partnership with civil society and NGOs like Ayuda em Accion, we have the capacity to do much more for the progress and well-being of the people in the rural areas of Northern Mozambique, particularly and urgently in the areas affected by terrorism," said Adolfo Muholove, PCE of Gapi, at the end of the meeting.

In the first months of this project, which at this stage has a limited fund of 8.7 million Meticals, provided by the La Caja Foundation, Gapi has identified 31 micro-businesses that are being assisted to become formal enterprises and have access to credit.

The conditions of these financings include convenient deferment periods for initial business stabilization, as well as interest rates below 12% per year. Gapi is taking on the responsibility of monitoring the beneficiaries with its own means. About a hundred jobs have already been secured.

The organization Ayuda em Acción has provided the La Caja Foundation with Gapi's skills and implementation to carry out more ambitious and comprehensive projects in Northern Mozambique.

The manager of Gapi in Cabo Delgado, Bruno Torres, recently participated in an international conference in Barcelona that marked 25 years of international cooperation of the La Caja Foundation, and reported on "Gapi's recent experience in programs for the development of youth and women, namely Agro-youth, PROMER, Juve Inova, Incubox, which are co-financed by multilateral cooperation agencies.

"In Gapi's portfolio, in addition to managing lines of credit and guarantee systems for small businesses, the institution has also been asked to carry out socio-economic stabilization and inclusion interventions in areas of mega-project activities such as those of Total Energies in Palma, in Montepuez with Ruby Mining, and in Cateme-Tete with Vale," added Rui Amaral of the Executive Committee of this development finance institution.

During the meeting with Infanta Cristina, Gapi's CEO said that Gapi is expanding its presence and intervention capacity throughout Northern Mozambique, with a particular focus on the Pemba-Lichinga and Nacala Corridors.

The management of La Caja also appreciated the fact that several institutions of the Mozambican government establish agreements and contracts with Gapi, to ensure an efficient implementation of development programs and projects with public funding, such as the recent contract between IPEME (Institute for the Promotion of Small and Medium Enterprises) and Gapi for the management of a feed mill in Niassa.

In addition to the five branches in the Northern region, Gapi is promoting a network of local micro banks and business development units that facilitate the provision of business start-up and management assistance services, as well as promoting financial inclusion and access to capital.