afrol News, 16 January - A project to finance small and medium-scale enterprises in Mozambique today received the support of the African Development Fund (ADF). The Fund approved a loan of US$ 4.4 million to support these Mozambican enterprises.
The African Development Fund today reported it had approved a loan of approximately US$ 4.4 million to finance "a line of credit to support small and medium-scale enterprises in Mozambique."
The Fund says this project is "in support of the comprehensive Industrial Strategy Policy" approved by the government in 1997 to accelerate the recovery and further development of the industrial sector through the promotion of Small and Medium-Scale Enterprises.
- The objective of the project is to support the development of small and medium-scale enterprises in Mozambique by enhancing their access to medium and long-term finance, the Fund today said in a statement.
- The line of credit will provide Small Industry Development Fund (FFPI) and the Small Investments Promotion Company Limited (GAPI) with necessary resources to grant medium and long-term local currency loans to eligible Small and Medium-Scale Enterprises, according to ADF.
The Fund claim this line of credit is to make resources available to up to 250 Small and Medium-Scale Enterprises using simple production techniques with limited impact on the environment.
- The creation of a modern and competitive industrial sector as well as the expansion of the activities of benefiting firms will assist in preserving existing jobs as well as in generating new ones, the Fund says. Finally, the growth of Small and Medium-Scale Enterprises will help to develop rural industries and alleviate poverty among the rural population.
Sources: Based on ADF and afrol archives