Mozambique - Line of Credit to "Banco Comercial E De Investimentos S.A. (BCI)" (AFDB-P-MZ-HAB-004)

Countries
  • Mozambique
Where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 15, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Banco Comercial e de Investimentos S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Sep 11, 2020


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Project Description

According to bank documents, 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.

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.

Investment Description
  • African Development Bank (AFDB)
Private Actors
Contact Information

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.