This Friday, in the city of Nampula, the President of the Republic, Daniel Chapo, launched the Business Recovery Fund, an initiative aimed at supporting micro, small and medium-sized enterprises (MSMEs) in the provinces of Nampula, Cabo Delgado and Tete.

With an initial amount of five million US dollars, the fund aims to mitigate the economic impacts resulting from the recent cyclones and violent demonstrations that have affected the country.

The ceremony, which was attended by various government bodies, businesspeople and representatives of the World Bank, was promoted by the Zambezi Valley Development Agency and the Coordination Unit of the Economic Links for Diversification Project (Conecta Negócios).

During the event, giant cheques were also handed out to representatives of the 26 sub-projects approved for funding by the III Edition of the Catalytic Fund for Innovation and Demonstration, a program that aims to improve access to the market for MSMEs, especially those led by young people and women.

President Chapo pointed out that the Government of Mozambique, through the Ministry of Economy and Finance, is implementing Conecta Negócios with funding from the World Bank, aimed at strengthening the performance of MSMEs through economic links.

He also pointed out that the northern region of the country promises significant growth with the possible resumption of megaprojects, and it is essential to ensure that local MSMEs can participate in these economic opportunities.

Since July 2023, the Third Edition of the Catalytic Fund has been implemented to support the integration of MSMEs into strategic value chains. The priority provinces are Cabo Delgado, Nampula and Tete, which were severely affected by cyclones Chido, Dikeledi and Jude, in addition to the violent demonstrations recorded since October 2024. These events have compromised the operational capacity and employability of local companies, with a particularly significant impact on those led by young people and women.

To respond to this reality, the Business Recovery Fund was created with an initial amount of five million dollars, corresponding to around 320 million meticais. This initiative is in addition to other support mechanisms for the private sector, such as the Local Economic Development Fund and the Subsidized Credit Line, the total amount of which is 10 billion meticais.

With these measures, the government aims to stimulate the economy, strengthen the private sector and boost job creation. The Head of State stressed the importance of environmental and social sustainability in funded projects. "We have been increasingly demanding that environmental and social safeguards be included in projects financed with public funds.

This requirement is in line with international environmental policies and aims to ensure that investments are resilient to climate change," he said.

The 3rd edition of the Catalytic Fund allocated 15 million dollars (around 945 million meticais) to support approximately 100 MSMEs, strengthening their links with megaprojects and encouraging the transition to a greener economy.

President Chapo also pointed out that the government is continuing to work on the resumption of the Rovuma gas projects, and that the Export-Import Bank of the United States (Exim Bank) recently approved around 4.7 billion dollars in financing for TotalEnergies.

During the ceremony, checks were handed out to 26 companies approved for funding by the Catalytic Fund, in a clear demonstration of the government's commitment to strengthening the national private sector. The President of the Republic recalled the importance of good management of the funds, calling on entrepreneurs to use the resources in accordance with the approved projects.

"Avoid diverting funds to non-productive purposes. The success of these initiatives will determine the continuity of the program and allow more companies to have access to funding," he warned.

Finally, the President of the Republic reaffirmed the government's commitment to continue promoting and financing the private sector, creating favorable conditions for business growth and job creation. He stressed that Mozambique's development is intrinsically linked to the prosperity of national companies, which play a fundamental role in boosting the economy and improving the quality of life of Mozambicans.