The African Development Bank (AfDB) is providing 74 million meticals to support Small and Medium Enterprises (SMEs) in the agricultural sector, through training, as part of the Project for Strengthening the Productive Capacity of SMEs.
The Confederation of Mozambican Economic Associations (CTA) is in charge of managing the fund, which may cover at least 300 Small and Medium Enterprises (SME) in the agricultural sector. The agreement was signed on Wednesday in Maputo between the CTA and the ADB.
The President of the Confederation of Economic Associations (CTA), Agostinho Vuma, clarifies that “the 74 million meticals are not a direct line of credit for companies. They are, rather, financing for training activities aimed at making national agribusiness companies more robust and able to compete internationally.
Meanwhile, Vuma said that this is the first step of a larger plan, having assured that the next is to make available a direct financing line for the agrarian sector. “We will soon launch a fund, directly from the CTA, with the purpose of making the productive sector more powerful in the country,” he said.
The African Development Bank, funder of the SME Productive Capacity Strengthening Project, says there needs to be investment in preparing farmers for opportunities.
“We are looking at increasing the competitiveness of the sector in this country, which is so crucial for the transformation and diversification of the country, so that they can be prepared to take advantage of the opportunities to be opened up by the African Free Trade Area,” Pietro Toigo advanced.
The Italian government, which also supports the training initiative for agribusiness companies, guaranteed to create a bridge to strengthen relations between Mozambican and Italian businessmen.
In 2015, as part of efforts for agricultural development, 24 development poles with potential for the creation of Special Economic Zones (SEZs) for agribusiness were identified in the country with a view to promoting investment in key sectors that can leverage agricultural production in the country.
These are the districts of Manhiça and Moamba, in the “Maputo Corridor”, Xai-Xai, Chókwè and Massingir (Limpopo), Nhamatanda, Caia, Báruè, Sussundenga, Mossurize, Macate and Vanduzi (“Beira Corridor”), Namacurra, Mocuba and Angónia (Zambezi Valley), Malema, Ribáuè, Cuamba, Mecanhelas and Mandimba (Nacala), as well as Balama, Namuno, Montepuez and Nguri/Namacande (“Pemba-Lichinga Corridor”), which are the elected locations for the establishment of the so-called Special Economic Zones for agribusiness.
According to 2019 data, the contribution of the agrarian sector in the GDP structure increased from 24.7 percent in 2014 to 27.1 percent in 2019.
