German Financial Cooperation, through the German Development Bank, will disburse a total of 17.5 million euros to Mozambican micro, small and medium-sized enterprises (MSMEs), the Bank of Mozambique announced Tuesday in a statement.
Of the total amount, which will be channelled via the Bank of Mozambique, six million are earmarked for emergency support for micro, small and medium enterprises due to the impact of covid-19 in the country.
“The covid-19 emergency grant facility, worth 6 million euros in local currency, non-reimbursable, for micro, small and medium enterprises affected by the pandemic, aims to mitigate its impact and help MSMEs to survive,” the Bank of Mozambique statement said.
The agreement, signed today between the Mozambican central bank and German Cooperation, also provides nine million euros for a credit line for micro, small and medium businesses.
“The credit line will provide long-term funding in local currency on economically sustainable terms and conditions. The funds will help businesses to finance the investments needed after the pandemic to enable business to rebuild or grow”, the paper adds.
A figure of 2.5 million is also foreseen for technical assistance for small and medium-sized enterprises to be covered by the credit line, according to the paper.
