The Cereals Institute of Mozambique (ICM) and Gapi have approved a program to mobilize additional resources to strengthen the Agricultural Commercialization Credit Line (LCCA), an instrument that, since its creation in December 2018, has already financed 260 operations for a cumulative amount of 374 million meticais.
“Given the results achieved so far and the growth in capacity and demand from family farmers and rural traders, it is important that for this campaign we are able to strengthen the LCCA with an additional 100 million meticais,” said LCCA Finance Director Amiro Abdula.
According to him, this instrument has had a positive impact on local economies and the rigor in its management ensures that this credit portfolio is with a low rate of delay, around 7%, and the rate of compliance in credit repayment is 93%. “Considering the risks of this sector and the target group, these indicators demonstrate the seriousness and professionalism of the ICM-Gapi partnership,” stressed Amiro Abdula.
In a communiqué, the two institutions point out that of the 260 credit operations financed, 13% were for agro-processing and 87% for agricultural commercialization. For this, about 40% of these operations benefited youth enterprises.
“These percentages, refer us to the need to encourage young people to opt for entrepreneurship, more specifically to embrace the area of agricultural commercialization, as a way to increase the income of their families,” reads the joint report of the two institutions. The northern region of the country absorbed 65% of the total amount financed by the LCCA. Corn, beans, sesame, soybeans, peas, peanuts, cashew nuts, rice, and dried cassava are the products most purchased by rural traders.