The Catalytic Innovation and Demonstration Fund (FCID) has announced an investment of 948 million meticals (15 million dollars) to boost around 100 small and medium-sized enterprises (SMEs) in Mozambique. With the aim of promoting business development and competitiveness, this support will be aimed at companies in the provinces of Tete, Nampula, Cabo Delgado and other regions in the centre of the country, according to the newspaper Noticias.
According to the Zambezi Valley Development Agency (AdZ), which is coordinating the project, the initiative aims to empower local SMEs so that they can participate effectively in the major projects underway in these regions.
This Tuesday (29), in Tete, AdZ signed the first 15 subsidy contracts with SMEs from the three provinces mentioned, integrating them into the ‘Connecta Negócios’ project, a platform developed to connect local companies to megaprojects.
During the event, the governor of Tete, Domingos Viola, stressed the importance of strengthening local content, pointing out that many SMEs face difficulties competing in tenders for large projects, and that the programme will facilitate the development of these companies, preparing them to compete under more favourable conditions.
Domingos Viola also emphasised that the private sector plays a central role in strengthening the Mozambican economy by generating jobs and income, which in turn expands the tax base and increases state revenues. In this context, he praised the creation of the FCID and other lines of support aimed at strengthening the sector.
The director general of AdZ, Roberto Albino, explained that the subsidy offered by the fund will cover up to 70 per cent of each beneficiary company’s investment, with amounts varying between 3.1 and 12.6 million meticals for small companies, and between 3.1 and 25.2 million meticals for medium-sized companies.
Albino explained that the funds are granted without the need for repayment, which allows the beneficiary companies to strengthen their assets without the pressure of additional debts.
