
Maputo, 20 May – Mozambique’s Deputy Minister of Economy and Finance, Carla Louveira, has announced that the Mutual Guarantee Fund (FGM), which was set up under the Package of Economic Acceleration (PAE), will be implemented by the National Investment Bank (BNI) to function as of August this year.
The PAE was introduced in 2022 to restore economic growth that had stagnated as a result of the Covid-19 pandemic and the suspension of direct support to the State Budget from donors in the wake of the scandal of the “hidden debts”.
In order to strengthen the PAE, the government recently announced the reintroduction, as of next year, an Action Plan for the Economy and Business Environment.
According to Louveira, who was speaking last week at the Annual Private Sector Conference (CASP), the development of the Fund is at the stage of finalizing its economic model, in coordination with the Bank of Mozambique, with the support of BNI.
“We expect the Fund’s management company to issue its first guarantee in mid-August”, she said.
The legal instruments approved by the government point out that the fund will make around 300 million dollars viable.
The government claims that the establishment of the legal regime for MGF management companies aims to promote a robust, flexible system of loan guarantees in line with the best standards of administration and financial management.
The MGF is a set of autonomous assets, made up of public financial resources, integrated into the Public Treasury, which aims to ensure easy access to financing for micro, small and medium-sized enterprises operating in the agriculture, fish farming, agricultural marketing and processing, tourism and housing sectors, by granting guarantees and counter-guarantees.
(AIM)
Ad/pf (287)