Now Reading
Absa Bank and USAID Sign Agreement to Boost SME Financing

Absa Bank and USAID Sign Agreement to Boost SME Financing

The Absa Bank Mozambique, signed this Wednesday, a guarantee agreement with the United States of America, represented by USAID, to strengthen the banks capacity to grant credit to Small and Medium Enterprises, focusing on agribusiness.

During the session, USAID’s Director in Mozambique, Helen Pataki stated that “There is a need to increase global production by 70% before 2050 for a growing world population. To meet this challenge, it will be necessary to support and develop technological innovations that increase agricultural productivity in a competitive manner, while preserving the environment and contributing to the production of food of high nutritional value.”

However, access to these technologies, access to finance is a primary condition, so Helen reinforced “The United States Government is helping to solve this problem with this new partnership with Absa Bank Mozambique. The new partnership allows the financial sector to expand its financial products to the agricultural sector and to include rural Small and Medium Enterprises as a priority sector or group for financing”.

In his turn, the Managing Director of Absa Bank Mozambique, Rui Barros, said that “Absa has been increasingly supporting Mozambican SMEs. This segment also has a relevant direct impact in social terms, with the creation of jobs and the domestic production of essential goods. In particular, the agriculture sector is not only the largest national employer, but also the solution for food security”. This partnership will boost this support and accelerate the economic and social development of a large percentage of the national population. To reinforce this, he added “this partnership, between institutions that share a vision of sustainable growth for Mozambique and a long standing commitment to the country, is also a clear demonstration of how foreign capital development institutions and local private entities can work together and give a real and significant boost to Mozambique and Mozambicans”.

See Also

With this agreement, Absa intends to reinforce its commitment to economic growth and support for the country’s development, on the one hand by promoting investment and improving the business climate while developing a favorable environment for the generation of new jobs, and on the other hand by supporting the sustainable growth of the agriculture sector in its food security plan.

close

Get our daily newsletter directly in your email

© 2021 360 Mozambique by Media 4 Development. All Rights Reserved.

Scroll To Top