The Mozambican Cereals Institute (ICM) and the Support Office for Small Investment Projects (Gapi) are implementing a Credit Line for Agricultural Commercialisation (LCCA) in the country.
According to “Notícias”, the initiative recently benefited traders operating in the provinces of Cabo Delgado, Tete and Gaza, totalling 11 million meticais.
The LCCA is an instrument created by the Government under the Agriculture Commercialisation Revolving Fund (FRCA).
It is managed by Gapi and the Mozambique Cereals Institute (ICM) and so far has granted loans to 167 rural traders amounting to 230 million meticais.
Speaking recently at the launch of the Agricultural Commercialisation Campaign 2021, in Chongoene, Gaza province, the Prime Minister, Carlos Agostinho do Rosário, stressed the importance of the initiative, urging managers to ensure that more stakeholders benefit and the agricultural commercialisation activity allows for the purchase of a large part of the production in the fields.
Three traders financed by LCCA were presented on the occasion, namely Cornélio Seta, who operates in Balama, Cabo Delgado;
Jacob Benjamim, Angónia, in Tete province; and Celina Manhique, Chibuto, in Gaza.
On the occasion, Adolfo Muholove, president of the Executive Commission of Gapi, said that “the beneficiaries are part of 167 that throughout the country and since we launched the LCCA have already received about 230 million meticais, which made possible the commercialisation of about 55 thousand tons of various products, with emphasis on corn, sesame, beans, soya beans, peanuts, rice and recently cashew nuts.
Muholove also highlighted the need for this line to be strengthened so that the marketing activity becomes more comprehensive.
“This line has a visible success and contributes to the financial, economic and social inclusion of stakeholders, and one of the main indicators of its success is the credit repayment rate, which is around 98%. The numbers are still small if we consider the universe of needs, but the level of efficiency and the results achieved so far make us certain that this is the path to follow”.
For his part, Mohamed Valá, director of the ICM, highlighted “the significant impact of the initiative in rural areas, with the real increase in family income”.
“We hope to be able to expand the fund, with the adhesion of other stakeholders to serve the main objective which is to provide traders with the technical and financial capacity to buy the agricultural surplus and, consequently, boost this activity and, at the same time, feed the industry,” said Valá.
