Micro, small and medium-sized enterprises (MSMEs) in the provinces of Nampula, Cabo Delgado and Tete have been benefiting since Friday from the Business Recovery Fund, financed by the World Bank to the tune of five million US dollars.

The fund is intended to support MSMEs affected by shocks, helping them to stay in business, and is technically coordinated by the Zambezi Valley Development Agency.

The funding is based on 10 percent subsidies. The minimum amount is one million meticais and the maximum is three million.

The ceremony to launch and hand over giant checks to 26 sub-projects approved for the 3rd Edition of the Catalytic Fund for Innovation and Demonstration, out of a total of 72 MSME applicants, took place in Nampula and was presided over by the Head of State, Daniel Chapo.

On the occasion, Chapo said that the government is implementing the economic connections project called Conecta Negócios, aimed at strengthening the performance of MSMEs, looking at the business opportunities created by the mega-projects planned, mainly in Cabo Delgado, which could resume at any time.

As part of the implementation of "Conecta Negócios", the 3rd Edition of the Catalytic Fund was launched in 2023, aimed at financing private initiatives, with an inclusive business connections approach, focused on improving market access for MSMEs, mainly led by young people and women.

With a focus on strengthening links between SMEs through the provision of goods and services, the fund is prioritizing Nampula, Cabo Delgado and Tete. The first two were devastated by cyclones and storms, as well as violent demonstrations.

This initiative joins others that support the cash flow and investment of MSMEs, such as the Local Economic Development Fund, with subsidized credit of 63 billion meticais, and the restructuring window for loans granted to companies affected by the demonstrations.

"We will continue to create funds that facilitate the private sector and, consequently, stimulate the economy so that it quickly picks up and we can create more jobs for young people," he said.

He said that this was an important milestone in the implementation of "Connecting Business", but it was only one stage. He acknowledged the difficulties in accessing bank credit, adding that the next stage will be to implement the funded projects, according to the subsidy agreements signed by the beneficiary companies and the government. (News)