A USD 15 million Line of Credit is available to finance Small and Medium Enterprises (SMEs) affected by Cyclones Idai and Kenneth, which devastated the country in March and April 2019, respectively.

According to information advanced by the Idai Post-Cyclone Reconstruction Office (GREPOC) this Wednesday, the amount was made available by the World Bank, through the International Development Association (IDA), and its implementation is in charge of the Economic Rehabilitation Support Fund, through financial institutions. 

The Credit Line aims to finance investments or the treasury of at least two thousand SMEs, among them at least 600 led by women.

According to GREPOC, SMEs selected by the participating financial institutions, according to their credit granting processes, are eligible for funding, provided they meet the following minimum criteria: main activity based in the provinces most affected by the cyclones (Sofala and Cabo Delgado, as well as Inhambane, Manica, Nampula, Tete and Zambézia); majority private capital and control; and number of permanent employees equal or less than 100, as determined by the General Statute of Micro, Small and Medium Enterprises. Stresses that the maximum amount of exposure per beneficiary is 10 million Meticais.

Data advanced by GREPOC also indicate that the capital amortization will be made in equal and consecutive semi-annual installments on the amortization dates, with the first amortization to be made on June 30, 2022, and the last on December 31, 2026.

In addition to the Credit Line, GREPOC says there is a matching grant to support the recovery of Micro, Small and Medium Enterprises (MSMEs), worth $5 million, aimed at those who have lost all their production capacity.