According to bank provided information, the investment involves a loan portfolio guaranty to increase lending to SMEs in Mozambique’s agriculture sector.
This Project is expected to have a highly developmental impact with loans to support lending to SMEs, with a focus on agriculture SMEs. Agriculture is the mainstay of the Mozambican economy, contributing more than a quarter of GDP and employing more than 70 percent of the total labor force. The agricultural sector is dominated by smallholders, though there are some larger enterprises engaged in production and agro-processing. These loans will improve access to finance to agriculture SME borrowers, which is important for the country as the sector is an important driver of employment and food security. The challenge has been even more pronounced from the COVID-19 pandemic, which resulted in an economic contraction in 2020.
*Contact information not provided at the time of disclosure*
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