The problem of the access to financing in Mozambique continues to be a subject that is very much discussed nowadays, mainly in the big meetings that bring together representatives of the Government, private sector and other cooperation partners.
Recently, the Chairman of the Mozambique Stock Exchange (BVM), Salim Valá, said that the access to financing still constitutes a barrier due to the way some projects are presented, pointing out that, in the scope of their conception, their viability has not been observed, nor the propitious business environment.
“People are only concerned with knowing whether or not banks are giving credit, they do not look first at the type of project, they do not analyse if there are favourable conditions for access to financing, nor if there is the capacity to put it into practice within our business environment,” he said.
Speaking during the first edition of the Economic and Financial Forum, more specifically in the panel on “Alternative Financing Solutions For the Private Sector”, Salim Valá explained that challenges still persist in the field of access to financing, starting with commercial banking to the capital market itself, and there is therefore a need for entrepreneurs to start looking for new means and mechanisms to develop their initiatives.
“We must improve the ecosystem. Of course, this may take a long time, but it is important. BVM has been working with both the banks and the other partners in the financial system and in recent times we have noticed that things are already moving. There are adjustments that need to be made and not just on the regulatory side. We need to reconcile institutions and technology, as these are important factors in accessing markets”, stressed the Chairman.
In the same vein, the other speakers said that, to make possible the access to funding in Mozambique, it is important to start investing in more modern, innovative and inclusive means, thus moving away from the monopoly of commercial banking.
“We don’t have finance because of legislation that makes it difficult to attract new solutions. The government should create development banks and these in turn should be sectoral so that they help in the provision of credit. We need to learn more about financial education and access to markets so that we can present quality projects. We must seek permanent solutions and use facilitating tools such as technology,” warned Gilberto Ngale, Investment Officer of the International Finance Corporation (IFC).
Sharing his experience, the representative of PKF Mozambique, Hugo Caetano, stressed that it was crucial “to look for alternative lines that are computerised and digitalised, in order to provide facilities without many constraints and bureaucracy.
“The fintechs bring a lot of advantage in cases of demand for access to finance, as they help in the provision of information,” he concluded.
The first edition of the Economic and Financial Forum, an initiative of Mochi Investimentos, in partnership with the CTA – Financial Policies and Services Department, was held last Wednesday, 17 May, in the city of Maputo, with the aim of boosting the financing of the national private sector, to promote discussions between financial institutions, business sector and civil society, to inform about funding opportunities for companies and to bring lenders and beneficiaries of local funding for investment projects closer together, contributing to the identification of barriers and solutions.
