Mozambican President Daniel Chapo has launched a Mutual Guarantee Fund worth $40 million, aimed at providing credit guarantees to at least 15,000 micro, small and medium-sized enterprises (MSMEs) across the country.
Speaking at the official launch in Maputo during the opening of the 60th edition of the Maputo International Trade Fair (FACIM), Chapo said the initiative would help address one of the main obstacles facing small businesses: access to finance.
“This instrument is not just a financial mechanism, it is a bridge for the recovery of Mozambique’s economy. With this fund, we expect around 15,000 small and medium enterprises, mostly led by young people, to secure financing,” Chapo stated.
The fund, created by the Mozambican government with World Bank support, is the latest in a series of initiatives that also include the Economic Recovery Fund and the Local Economic Development Fund.
According to Chapo, high interest rates and the lack of collateral have been “almost insurmountable barriers” for small businesses, despite them being the backbone of the country’s economy. SMEs account for about 90 percent of job creation and income generation in Mozambique.
The President called on banks to embrace the scheme, noting that several had already joined. He also urged swift and transparent implementation so that funds reach the enterprises that need them most.
FACIM, Mozambique’s largest business and investment showcase, was chosen as the platform for the launch. Chapo said the fair represents “a meeting of minds with the future”, highlighting opportunities for businesses to establish new partnerships, expand markets and sign investment contracts.
He also underlined his government’s commitment to improving the business climate by simplifying procedures, strengthening legal predictability, and fighting corruption in both the public and private sectors.
“Mozambique offers unique opportunities, with macroeconomic stability, political and social stability, and vast natural, mineral, agricultural and tourism resources. Above all, it offers a hardworking and welcoming people,” Chapo said, addressing international investors.
The President also used the occasion to award prizes to the country’s top exporters of 2024 and to recognise the largest investors between 2023 and 2024.
Declaring FACIM 2025 officially open, Chapo said the fair marked a “turning point” in Mozambique’s governance, consolidating commitments to youth employment, local production, agriculture, health, education, infrastructure, and sustainable development.
