African Development Bank’s SME Program: Enhancing Inclusive Growth and Job Creation in Africa

Friday, April 25, 2014

The Board of Governors of the African Development Bank Group (AfDB) through itsprivate sector window has approved a US $9 million line of credit (LOC) equivalent inMozambique metica (MZN) to Moza Banco.

Moza Banco S.A. is one of Mozambique’s fastest-growing financial institutions with strong focus on SMEs. Moza Banco is actively present in almost all of Mozambique’s 11 provinces with business including (i) corporate, (ii) SMEs and (iii) retail.

The LOC will support SME sub-projects and these are well-diversified spanning alleconomic sectors including manufacturing, commerce/trade, services, tourism, construction, agriculture and transport, etc. Economic benefits likely to accrue from the 70 SME sub-projects to be financed under this facility and these SMEs currently have approximately 2,000 employees and are going to add 400 new employees in rural and urban areas of Mozambique. In addition, the project will induce transfer of technology, development of local entrepreneurship and enhancement of technical skills. The sub-projects will contribute to Government revenues in the form of value-added, income and corporation taxes.

Source: AfDB (link opens in a new window)

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employment, financial inclusion, SME finance