Project General Description
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. Approved by the AfDB’s Board of Directors in July 2013, the Africa Small and Medium Enterprises (SME) Program is a four-year, US $125-million funding program combined with a US $3.98-million technical assistance package granted by the Fund for African Private Sector Assistance (FAPA), which aims at supporting Micro, Small and Medium Enterprises (MSMEs) in Africa. SME Program will provide the necessary longer term finance and a technical assistance package to address a number of constraints faced by around 25 target financial institutions and their SME clients across Africa.
The LOC will support SME sub-projects, and these are well-diversified, spanning all economic sectors including manufacturing, 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 corporate taxes.