Entrepreneurs in the agricultural sector have faced enormous barriers in obtaining bank financing for the development of agriculture.

As a way of getting around this scenario, the commercial banks suggest creating a guarantee fund to make agricultural financing viable in the country.

The position was defended by the Mozambican Banking Association (AMB) during a seminar on "Financing Mechanisms for the Development of the Agricultural Sector".

The event was organized by the Ministry of Agriculture and Rural Development, as part of the Maputo International Fair (FACIM).

According to Notícias, the banks believe that the guarantee fund would be a way of sharing the risks of financing their activities.

According to data shared at the seminar, agriculture currently dominates the structure of national production, with a weight of 22%, employing 75% of the economically active population.