Mozambique - Line of Credit to "Banco Comercial E De Investimentos S.A. (BCI)"


Project Summary

Approval Date 15 Jul 2019
Sovereign / Non-Sovereign Non Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 21,952,129.72
Status Approved

Project General Description

The proposed project is for a thematic Line of Credit (LOC) of up to USD 30 million to Banco Comercial e de Investimentos S.A. (BCI) in Mozambique to support industrialization and agriculture business projects as well as Small and Medium-Sized Enterprises (SMEs) and women-owned as well as youth enterprises in Mozambique to stimulate inclusive economic growth of the country. BCI is one of the most-established and largest financial institutions in Mozambique with a domestic market share of 29.3% in terms of loans and advances at the end of December 2018. It was established in 1996 as an investment and corporate bank and expanded successfully in Mozambique. As the largest bank in the country, it plays a leading role to help key sectors and SMEs. The Bank’s support provides considerable financial additionality to improve the BCI’s balance sheet structure, which also enhances stability of the financial sector. This project is also complimentary to other Bank’s projects in the public sector including infrastructure and agriculture projects. As part of the package, the Affirmative Finance for Women in Africa (AFAWA) Initiative will provide technical assistance to support capacity building, business development and lending by BCI to women-empowered enterprises.

Project Objectives

The Bank’s long-term funding will support BCI’s loan portfolio growth in key sectors such as industries (light manufacturing, construction materials, transport/logistics) and agriculture businesses to promote industrialization in Mozambique. The proposed project will support export oriented sectors (sugar, palm oil, etc.) as well as import-substitution sectors (e.g. processed food) which will improve the shortage of USD liquidity in the economy.

Beneficiaries

The project will contribute to the country’s industrialization which will enhance job creations and government revenues at the time of continued economic difficulties. BCI will also scale up its support to SMEs and women-owned enterprises by using the AfDB’s facility and its technical assistance provided by AFAWA team.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-MZ-HAB-004
Last Update 21 Oct 2020

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Mozambique