Millennium bim executive director Liliane Catoja on Tuesday (2) called for stronger partnerships between large companies and small and medium-sized enterprises (SMEs) as a way to strengthen local content, reduce the high rate of business mortality, and promote more inclusive economic growth in Mozambique.
She was speaking during the 3rd edition of the Coffee Break B2B Leadership event, held under the theme “CEOs, Architects of the Future,” where she highlighted that one of the main challenges facing the national business landscape remains the short lifespan of small businesses.
“We have many small and medium-sized enterprises, but the success rate is very low and the mortality rate is very high. The lifespan of these businesses is usually around three or four years, and entrepreneurs keep moving from one idea to another until they find one that allows them to grow,” she said.
According to Catoja, the survival and growth of SMEs increasingly depend on their ability to establish cooperative relationships with established companies that have experience, financial capacity, and market access.
“It will always depend on finding partnerships between companies that are already solid, that already have business experience and financial capacity to hire or subcontract services from SMEs, in order to strengthen the domestic business ecosystem,” she explained.
The Millennium bim executive director stressed that promoting local content should not be limited to compliance with policies or regulations, but should instead stem from a strategic decision made by corporate leadership.
“There must be a clear intention. It cannot just be a policy. It has to come from the company’s leadership itself. What contribution do I want to leave in this region? What mark do I want to leave around me?” she asked.
As an example, she referred to major investment projects established in different provinces of the country that require a wide network of suppliers of goods and services.
“When a large company sets up operations, it needs a range of services. Often the first option is to hire those it already knows, those with experience. But this ends up excluding what we often defend, which is local content,” she noted.
To address this, Catoja argued that large companies should take an active role in developing local suppliers by helping them access financing and build operational capacity.
“When a large company approaches a financial institution, it can act as a bridge for its supplier, guaranteeing that invoices will be paid. The bank finances the supplier and the cycle is completed. This has worked before and should continue to be promoted,” she said.
She added that such mechanisms reduce risk for financial institutions while creating opportunities for small businesses to grow gradually and sustainably.
“This is the kind of partnership that will allow this group of companies to grow step by step, becoming more specialised, more structured, and more developed,” she stressed.
During her intervention, Catoja also reflected on her experience in banking credit, noting that banks have been adapting their assessment models to better respond to the needs of small businesses.
“Millennium bim is a universal bank and serves all segments. We often use the financial flow behaviour of these small businesses to assess their risk profile and determine their financing potential,” she explained.
According to her, there are now analytical models that allow financial institutions to assess clients’ repayment capacity based on their transaction history, even in smaller-scale sectors.
“There are already financial models that make it possible to identify a client’s risk profile and determine the appropriate financing for each situation,” she said.
However, she stressed that access to credit alone is not enough to ensure SME growth, and that large companies must also contribute to building the capacity of their local suppliers.
“As a company, I need to understand whether my needs can be met by local suppliers. What can I do to empower them, to help them gain quality, scale, and grow within the ecosystem I am building?” she asked.
For Catoja, the future of Mozambique’s business community lies in creating more integrated business ecosystems in which large companies, financial institutions, and SMEs work in a complementary way to generate value, employment, and sustainable economic development.
Her intervention took place during the panel “CEOs, Architects of the Future,” which brought together Liliane Catoja, executive director of Millennium bim, Karina Jamal, managing director of Komo Box Lda, and Alexandre Cazula, accounting and taxation consultant.
The debate was part of the 3rd edition of the Coffee Break B2B Leadership event, which gathered business leaders, managers, consultants, academics, and representatives of public and private institutions to discuss the role of leadership in building more resilient, inclusive business ecosystems prepared for future challenges.
Text: Felisberto Ruco
