Mozambique’s Local Content Association has 50 million dollars in guarantees from Access Bank to support initiatives to integrate SMEs into major projects. And there will be more benefits to come.
The agreement is formalised: Access Bank will support Small and Medium-sized Enterprises (SMEs) in a partnership with Mozambique’s Local Content Association (ACLM), a non-profit organisation made up of private entities. Under this agreement, 50 million dollars are already available, aimed at strengthening SMEs and developing capacities to enter the value chain generated by various projects, particularly in the oil and gas industry. For ACLM president Elthon Tchemane, the institution aims to act as a bridge between SMEs and the Access Bank, guaranteeing greater flexibility in access to finance. But what does this support actually mean for both the bank and the companies? In which areas of business activity does it intend to act and how far can the relationship between the bank and ACLM extend? Find out the details from Tarcísio Mahanhe, head of wholesale banking at Access Bank Mozambique.
What underlies Access Bank’s interest in supporting the development of local content in favour of SMEs?
Access Bank is deeply committed to the sustainable economic growth of Mozambican communities. By embracing local content, we recognise the importance of promoting internal development, empowering SMEs and new ventures. We see the latent potential in entrepreneurship and industrialisation and want to provide the financial resources and institutional capacity building needed for these companies to thrive. We believe that by investing in local content, we can create a solid foundation for a more equitable and prosperous economic future for all Mozambicans.
Will the bank’s strategy be solely through financial disbursements or does it envisage other modalities?
We have been developing innovative financial instruments that facilitate access to risk-reducing loans, allowing local entrepreneurs to invest in their businesses without traditional financial obstacles (which include high interest rates). In addition, we are implementing financial literacy and institutional capacity building programmes aimed at improving the financial management of SMEs. This includes capacity-building initiatives and links to major projects, which will make our services more accessible and the return on investment more effective. In collaboration with ACLM, we will ensure that all our actions are in line with industry standards.
What gains does the bank expect to achieve with this initiative?
We hope that this initiative will result in tangible economic growth for local communities. By reducing asymmetries and creating a more favourable environment for SMEs, we believe we can drive a virtuous circle of development. The success of SMEs translates into more jobs, innovation and an increase in quality of life, which in turn benefits the bank through a more dynamic, resilient and sustainable market.
‘ACLM will provide data and input on eligible beneficiaries, value chain requirements, as well as liaising with the various stakeholders concerned’
But isn’t this an action with a deadline?
It’s a medium and long-term commitment. It’s not a one-off solution, but a sustained investment in Mozambique’s future. We want to be an integral part of the country’s economic development, promoting a real and lasting transformation that will benefit generations to come.
What specifically is the agreement with the Mozambique Local Content Association based on? The agreement with ACLM is based on close collaboration to ensure that all initiatives in this field are effective. ACLM will provide valuable data and input on eligible beneficiaries, value chain requirements, as well as liaison with the various stakeholders, helping us to design programmes that really meet the needs of the communities. This partnership is key to ensuring that our efforts have an impact.
How can companies access the fund?
Initially, SMEs located in Cabo Delgado province will be able to access the fund by registering with the Provincial Executive Council or ACLM. We hope to soon expand the project to the other provinces, broadening the number of partners and therefore the access points for beneficiaries.
Text: Nário Sixpene – Photo D.R
