A few days ago the Bank of Mozambique approved Notice no. 11/GBM/2024, of 30 August, which establishes the minimum share capital of mutual guarantee companies and loan guarantee fund management companies, having set it at 30 million meticals for each.
Share capital is the gross amount made available to start a company and keep it running until it makes a profit. This can be money or goods, such as computers, printers, furniture, the money needed to hire third-party services, among others.
The Central Bank’s decision is based on Law no. 20/2020, of 31 December, the Credit Institutions and Financial Companies Law, which creates a new type of financial company, Mutual Guarantee Companies, as well as Decree no. 37/2024, of 10 June, which creates the Mutual Guarantee Fund to promote easier access to finance for micro, small and medium-sized enterprises (MSMEs).
According to a statement from the institution, mutual guarantee societies aim to contribute to the promotion of the national economy by making access to credit flexible, through the establishment of a mutual support system for MSMEs, by providing guarantees and counter-guarantees. For their part, Mutual Guarantee Fund management companies aim to administer Mutual Guarantee Funds, as well as carrying out other legally permitted operations.
The Loan Guarantee Fund was set up by the government as part of the implementation of the Economic Acceleration Package (EAP) and will be implemented by Banco Nacional de Investimento (BNI), a public financial institution.
The government has planned for the Borrower’s Fund to be operational by mid-August. By mid-May, the Executive had approved the legal instruments that will make the 300 million USD Fund viable. These include the Decree creating the Fund and approving the respective Regulations.
Carta de Moçambique
