Line of Credit to Support Small and Medium Enterprises

Project Summary

Approval Date 16 Jan 2002
Signature Date 23 May 2002
Sovereign / Non-Sovereign Non Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 3,487,972.9
Status Completion

Project General Description

The present intervention is relative to the Small and Medium-Scale Enterprises Support Project. It should specifically address three main objectives of the Mozambican industrial sector. These are: i) the establishment of appropriate financing mechanisms that facilitate SMSEs’ access to finance; ii) the rehabilitation and modernization of the industrial sector; and iii) the strengthening and restructuring, of the institutions responsible for the promotion and development of local industry in order that they might provide a more integrated and efficient assistance to SMSEs. The proposed project should provide medium to long-term local currency funding to two institutions engaged in the financing of SMSEs in Mozambique, in order to bridge the maturity gap between the demand for long-term loans, and the deposits available in the financial system to provide such loans. These institutions are: GAPI (Small Investments Promotion Company Limited) and FFPI (Small Industries Development Fund). The project has three components: a Technical Learning in Firms Component, which focuses on building the technical capabilities of majority Mozambican-owned firms in manufacturing and services supporting manufacturing and exports (including tourism); a Finance (Line of Credit) Component, which seeks to provide SMSEs with medium to long-term finance through a number of selected financial institutions; and an Institutional Capacity Building Component, designed to provide assistance to selected Government and private sector institutions which interact most intensively with private firms.

Project Objectives

The objective of the project is to support the development of small and medium-scale enterprises in Mozambique by enhancing their access to medium to long-term finance. In making resources available to eligible SMSEs, the project should contribute to achieving the sector goal of creating a modern and competitive industrial sector.


It's expected that up to 250 small and medium-sized enterprises benefit from the project. Secondary beneficiaries should be new employees to be recruited by the primary beneficiaries, the participants in the local economies where the enterprises are located, as well as other firms providing inputs and services to the primary beneficiaries.

Participating Organization

African Development Fund


IATI identifier 46002-P-MZ-HAA-001
Last Update 03 Dec 2022


Contact Details


Geographic Location

Country Mozambique
Coordinates Location Name
-25.9655 32.5832 Maputo