EIB agrees EUR 5 million SME lending programme with Moza Banco
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The European Investment Bank has signed a new lending programme with Moza Banco that will support investment by small and medium sized companies across Mozambique. The loan from Europe’s long-term lending institution will provide EUR 5 million (over 200 million Mozambique metical) that will be matched by Moza Banco.
The new engagement with Moza Banco is part of a larger initiative to support private sector investment in Mozambique under a EUR 40 million initiative expected to be agreed with a number of banks active in the country.
The new initiative was formally agreed in Maputo by Carmelo Cocuzza, the European Investment Bank’s regional representative for Southern Africa and Prakash Ratilal, Chairman of Moza Banco., Chairman of Moza Banco. The signature was witnessed by Ambassador Paul Malin, Head of the European Union Delegation to Mozambique.
“The European Investment Bank is committed to supporting private sector investment across Africa in partnership with leading local banks and today’s new initiative demonstrates our continued commitment to Mozambique. Job creation and business growth can only take place when small and medium sized companies can invest. We are pleased to have launched a new partnership with Moza Banco and look forward to working together to enhance economic growth in Mozambique.” said Pim van Ballekom, European Investment Bank Vice President.
“Moza Bank is currently rapidly expanding its branch network, which already covers all provinces in the country, to support both investment and the national economy. According to 2013 data, small and medium sized companies represent around 78% of local companies and around two-thirds of formal employment. This new line of credit is therefore expected to make a significant contribution to sustainable and inclusive economic development in Mozambique.” said Prakash Ratilal, Chairman of the Board of Moza Banco.
"The European Union has a strong interest to promote equitable growth and job creation in Mozambique. We work with authorities to improve the business climate but ultimately it is the private sector that can create jobs and deliver growth. The new lending programme by the European Investment Bank and Moza Bank offers a new opportunity to undertake that role." said Ambassador Paul Malin, Head of the Delegation of the European Union to Mozambique.
It is expected that the new programme will support investment by companies active across a broad range of sectors, such as agriculture, manufacturing, transport, tourism, health and education and is expected to help create hundreds of new jobs. Loans will be managed by Moza Bano branches across Mozambique and be provided to eligible companies in Mozambique metical, US dollars and Euro.
Technical assistance will also help final beneficiary companies to develop business skills and assist partner banks to manage SME loans.
The European Investment Bank has been active in Mozambique since 1987 and supported investment totalling more than EUR 500 million. The EIB is currently examining a number of potential investment projects in the country including rehabilitation of Maputo airport and support for SMEs.
Over the last five years the European Investment Bank has supported investment totalling 10.5 billion euro across the African continent.
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