Africa Banking Economy Finance Mozambique SME

Bank of Mozambique asked to explain SMEs finance allocation

Mozambique’s Confederation of Economic Associations (CTA) says that the Bank of Mozambique’s US$500 million credit line is producing the desired results neither in the availability of foreign exchange in the national market, nor in meeting needs regarding importing essential products.

The national business aggregator advocates a clarification of the mechanisms whereby micro, small and medium-sized companies are to access funds.

José Caldeira, of the CTA financial policy division, says the Bank of Mozambique must clarify how national companies can actually access the bank’s US$500 million financing package, calling for the adoption of strategies to allow the facility to help them contain the economic impact of the COVID-19 pandemic.

Mozambican entrepreneurs also suggest that the Bank of Mozambique make the money available for sale to the interbank market.

Regarding the first 15 days of the state of emergency in Mozambique, José Caldeira said that all companies should have contingency plans to deal with any scenario, and that the private sector must be prepared to face the possibility of lockdown in the country.

The CTA is also seeking a reduction in fuel prices, given the historic reduction worldwide in the price of oil.

Source: TVM via Club of Mozambique

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