The Loan Guarantee Fund (LGF), set up by the government as part of the implementation of the Economic Acceleration Package (EAP), will start in August under the management of the National Investment Bank (BNI). The information was announced on Wednesday (15) during the 19th Annual Private Sector Conference (CASP) by the Deputy Minister of Economy and Finance, Carla Louveira.
During her speech, the minister began by saying that the development of the Fund is at the stage of finalising the economic model, in coordination with the Bank of Mozambique, as well as structuring a credit line and its operation with the support of BNI.
At the beginning of the month, the Executive approved legal instruments that will make the Mutual Guarantee Fund viable, budgeted at around 300 million dollars. These include the decree that creates and approves its respective regulations, as well as establishing the legal regime for management companies.
The FGM is a set of autonomous assets, made up of public financial resources, integrated into the public treasury, endowed with financial and patrimonial autonomy, the aim of which is to ensure easy access to financing for Micro, Small and Medium-sized Enterprises operating in the agriculture, fish farming, commercialisation and agricultural processing, tourism and housing sectors, through the granting of guarantees and counter-guarantees.
The CASP event organised by the Confederation of Economic Associations (CTA), in partnership with the government, aimed to reflect ‘on the progress and challenges of the Package of Economic Acceleration Measures and to debate the conditions of the business environment, in order to make the country more competitive’. Projects valued at 75.8 billion meticals (1.7 billion dollars) were also discussed.
With the theme ‘Investment and Business in the Environment of Economic Acceleration Measures: Challenges and Opportunities’, the three-day event (15, 16 and 17 May) was attended by 80 foreign businesspeople, more than 4,000 in-person participants and 20,000 virtual participants.
According to a CTA press release, there were also more than 40 national and foreign speakers and delegations from more than 12 countries, such as Mauritius, South Africa, Angola, Brazil, Portugal, the Netherlands, France, Italy and Zimbabwe, among others.
