The Mozambican government announced this Friday (28) a fund of 4.6 million euros (313.5 million meticals) to support micro, small and medium-sized enterprises (MSMEs) in the provinces of Nampula, Cabo Delgado and Tete, which were affected by the cyclones and post-election demonstrations. This support is aimed at the economic recovery of these companies, which are fundamental to the country’s development, reports Lusa.
‘This initiative joins others recently launched to support the cash flow and investment of private sector MSMEs in Mozambican, because we know that this sector is the main engine of the economy,’ said Mozambican President Daniel Chapo during the launch of the Business Recovery Fund in the northern province of Nampula.
The fund, valued at 4.6 million euros, has the support of the World Bank. Chapo emphasised that the aim is to increase the resilience of companies in the face of the shocks caused by cyclones and demonstrations, as well as preserving jobs and creating new ones, especially for women and young people.
He also called for environmental and social standards to be met in the projects financed, urging entrepreneurs to prioritise these aspects. ‘The demands should be seen as an effort to ensure that investments are more resilient to natural disasters,’ the President explained.
The consequences of demonstrations and cyclones in the country
Mozambique is in the middle of the rainy season, which runs from October to April. So far, it has been hit by several cyclones – Chido, Dikeledi and Jude. The latter, which entered the country through the Mossuril district of Nampula province on 10 March, caused at least 43 deaths, affecting the provinces of Tete, Manica, Zambézia, Niassa and Cabo Delgado as well as Nampula.
According to the National Institute for Disaster Risk Management and Reduction (INGD), more than 384,000 people have already been affected by the cyclones. In addition to these phenomena, the country has been facing strong social unrest since October, with demonstrations and stoppages led by former presidential candidate Venâncio Mondlane, who rejects the results of last year’s general elections, which gave victory to Daniel Chapo.
Around 1,000 Mozambican companies have been affected by the demonstrations, with an economic impact of more than 480 million euros, resulting in 17,000 unemployed, according to the Confederation of Economic Associations (CTA).
In addition, since October, at least 353 people have died, including two dozen minors, and 3,500 have been injured during the protests, according to the electoral platform Decide, a non-governmental organisation that monitors electoral processes. The government has confirmed at least 80 deaths, as well as the destruction of 1,677 shops, 177 schools and 23 health centres during the demonstrations.
