The United Bank for Africa (UBA Bank) and the Confederation of Economic Associations (CTA) launched last week, a financing line aimed at supporting Micro, Small and Medium Enterprises (MSMEs), with a focus on the agro-processing, automotive, pharmaceutical, transport and logistics sectors.
According to a statement from the association, the launch of the financing line was marked by the signing of a Memorandum of Understanding that formalises the partnership between it, represented by its president Agostinho Vuma, and UBA, represented by its CEO, Rotimi Morohunfola.
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The document explains that this is a financing line of 50 million dollars (3.1 billion meticals), which will be allocated to financing MSME projects starting at 150,000 dollars (9.4 million meticals).
“The line has advantages, especially in terms of cost, in that it offers subsidised prime rate prices for the purchase of equipment over a maximum period of four years,” the statement reads.
As MSMEs represent 98 per cent of the business structure and contribute around 48 per cent of jobs in Mozambique, according to data from the National Statistics Institute, access to finance for this segment of companies is seen as one of the most significant limitations to their development.
In this context, Agostinho Vuma believes that the financing line will boost national MSMEs and believes that, through this partnership with UBA, many companies will be able to benefit from the financing packages available from the Nigerian-owned financial institution.
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On the same occasion, the CEO of the United Bank for Africa, Rotimi Morohunfola, said that the institution decided to go ahead with the partnership with CTA because it brings together the Mozambican private sector, reaffirming the bank’s interest in supporting the growth of Mozambican MSMEs.
