This Thursday (29), during the 59th edition of the Maputo International Fair (FACIM), Germany reaffirmed its commitment to the strategic partnership with Mozambique, consolidating its position as the country’s second largest bilateral partner in development cooperation, humanitarian aid and stabilisation.
According to Roland Münch, the German ambassador to Mozambique, the partnership between the two countries has shown significant progress, reflecting Mozambique’s potential and the German private sector’s growing interest in new opportunities.
‘Mozambique offers great potential in many sectors, as does Germany’s market as a member of the European Union. We already see a growing interest from the German and Mozambican private sectors in exploring economic opportunities,’ said Münch.
The relationship between Germany and Mozambique is not new. Over the last ten years, the German government, in collaboration with the G7, has been promoting the development of the private sector in rural Mozambique.
During this period, partnerships have been formed with 26 companies, integrating 75,000 small producers into formal production systems, strengthening the competitiveness of the country’s agricultural market.
However, the lack of access to finance at affordable interest rates is a challenge for the growth of the private sector in Mozambique, especially in agriculture.
To mitigate this obstacle, Germany has collaborated with the Zambezi Valley Development Agency and the Bank of Mozambique.
‘We provide a line of credit and guarantees for agricultural micro, small and medium-sized enterprises (MSMEs), along with an inclusive business model’
Recently, the German government launched a new cooperation programme worth 12 million euros (841.6 million meticals), aimed at expanding existing credit lines to support the agricultural sector.
According to Münch, the programme aims to ‘help companies and small farmers grow, create jobs and feed Mozambique’s growing population’.
In addition, Germany is collaborating with the Intersectoral Coordination Platform Mechanism for Financing Agriculture (CIFAM), an initiative of the Ministry of Agriculture and Rural Development, to intensify support for the private sector and government institutions involved in promoting economic growth.
Finally, the German ambassador to Mozambique emphasised that these initiatives show Germany’s commitment to strengthening the country’s economy. ‘Mozambique has enormous potential in various sectors and, with the right support, it can become one of Africa’s most dynamic markets,’ he concluded.
‘Co-operation with Germany is central to economic development’
For his part, Miguel Jóia Santos, vice-president of policy and financial services at the Confederation of Mozambican Economic Associations (CTA), emphasised ‘the importance of cooperation between Mozambican President and Germany for economic development, especially in international trade and export financing.’
He also emphasised the importance of trade finance for expanding the operations of Mozambican companies in foreign markets. ‘Tools such as export credit insurance and trade guarantees not only protect companies against the risk of default, but also open doors to new growth opportunities,’ he explained.
He also warned of the need for effective financial risk management, mentioning the importance of collateral management. ‘In Mozambique, it is increasingly crucial to collaborate with organisations that manage collateral. This not only reduces the risks for companies, but also increases the confidence of lenders, allowing financing to be a real and effective solution.’
In conclusion, he emphasised the importance of a coordinated approach between the government, the private sector and financial institutions. ‘By working together, I believe we can help SMEs thrive in the global market, thus boosting Mozambique’s economic growth,’ he emphasised.
Florença Nhabinde
