Reserve and retired members of Mozambique's Armed Defence Forces (FADM) are being encouraged to organise into small groups and cooperatives to develop activities in the agricultural sector and benefit from available agribusiness financing, the Mozambique Information Agency reported.
The call was made at a seminar organised by the Directorate-General of Social Services of the FADM in Maputo, held under the theme "From Retirement to Entrepreneurship — Transforming Experience into Development Opportunities."
At the event, Adriano Júnior, a consultant at the Zambeze Valley Development Agency, presented financing options available through the Innovative Financing for Agribusiness project (FINOVA), which carries a credit line of €33.5 million made available by the German Government.
According to Adriano Júnior, the financing is structured across two components designed to meet different agribusiness needs: investment capital and working capital.
"Investment capital is designed to allow agribusinesses to acquire tractors, irrigation systems — in other words, everything that constitutes a fixed investment in their agricultural operations," he explained.
Working capital, meanwhile, is intended to secure resources for the purchase, processing, and commercialisation of agricultural produce.
Cooperatives as a gateway to financing
It is through this model of collective organisation that FADM Social Services have identified a means of facilitating the participation of reserve and retired military personnel in productive activities.
Samuel Luluva, Director-General of FADM Social Services, explained that the initiative aims to encourage former military personnel to form small groups or cooperatives, enabling them to organise productive activity and create better conditions for accessing financing and marketing their products.
"Investment capital is designed to allow agribusinesses to acquire tractors, irrigation systems — in other words, everything that constitutes a fixed investment in their agricultural operations." — Adriano Júnior
"The initiative is, in line with the cooperative model, to reach as many colleagues as possible," he said, referring to the phased rollout of the seminar across the country's three regions.
The emphasis on cooperativism seeks to convert the experience and skills accumulated by former soldiers throughout their careers into income-generating economic activities.
Military experience as an economic asset
Casimiro Mueio, Permanent Secretary of the Ministry of National Defence, argued that retirement or reserve status should not mark the end of former soldiers' contribution to national development.
"Moving to the reserve or retiring does not mean the end of one's contribution to the country. The experience, knowledge, discipline, and values acquired throughout a military career remain an asset that can be placed at the service of families, communities, and national development," he said.
He added that these competencies can be channelled into productive activities, job creation, and income generation, with particular emphasis on the agricultural sector.
The proposal comes at a time when specific financing instruments for agribusiness-related activities are already available, creating a potential link between the organisation of former military personnel and existing mechanisms supporting productive investment.
€33.5 million for agribusiness
FINOVA has €33.5 million at its disposal, provided by the German Government through the German Development Bank (KfW). Of this amount, €20 million is allocated to working capital and approximately €13.5 million to investment capital.
The project is operationalised by the Bank of Mozambique in partnership with Absa Bank, Standard Bank, BCI, GAPI, and Microbanco Confiança, while the Zambeze Valley Development Agency is expected to operationalise a rural financing component.
"Moving to the reserve or retiring does not mean the end of one's contribution to the country. The experience, knowledge, discipline, and values acquired throughout a military career remain an asset that can be placed at the service of families, communities, and national development." — Casimiro Mueio
According to data released by the Bank of Mozambique at the launch of FINOVA in October 2025, the financing carries interest rates between 8.5% and 17%, below the market average of 23% at the time. The project was designed to support companies and producers linked to agricultural value chains.
The instrument provides different financing modalities, covering everything from the acquisition of equipment and productive infrastructure to the purchase, processing, and commercialisation of agricultural output.
For Adriano Júnior, the existence of these modalities allows interested parties to select the solution best suited to the needs of their respective projects.
Initiative to be rolled out nationwide
The seminar promoted by FADM Social Services will be held in phases across the southern, central, and northern regions, with the aim of reaching a greater number of reserve and retired military personnel.
Through the cooperative model, the initiative seeks to stimulate the creation of collective economic activities and leverage skills acquired during military careers to develop businesses, particularly in the agricultural sector.
The proposal thus combines the organisation of beneficiaries, the utilisation of former soldiers' professional experience, and access to financing instruments already available to support productive activities.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/22/negocios/agronegocios/reservistas-das-fadm-incentivados-a-investir-no-agro-negocio/
