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

Export

Contact Details

Email	private-sector@afdb.org

Geographic Location

Country	Mozambique

Project Classification

Finance Type	N/A
Flow Type	N/A
Aid Type	Project Type Interventions

Commitments

U.A 21,952,129

African Development Bank

U.A 21,952,129.72

Document Type	Language	Document
Appraisal report	en	psn mozambique banco commercial

Indicator	Target Year	Target Value
Number of projects financed by "Banco Comercial e de Investimentos (BCI)" in some key sectors such as manufacturing, transport / logistics, light / heavy industries, machinery / equipment, agriculture / food processing sectors	2019	At least 8-9 relevant projects in these sectors
Credit to Agriculture	2019	4,5
Credit to Manufactory Industry	2019	8
Improved industrial capacity particularly manufacturing, transport and agriculture processing	2019	25
Increase access to finance for SMEs and women enterprises as well as promoting youth employment	2019	10
Number of Agriculture businesses financed	2019	5
The number of sub-borrowers who obtain loans (SMEs and women SMEs separately) as well as youth employment generation	2019	At least 15-20% of the AfDB’s facility to support SMEs including at least 50 women enterprises to receive technical assistance support and 20 women enterprises for funding
Microcredits granted	2019	50
SME supported/created	2019	532
Firms granted	2019	20