The Financing Lines of the Rural Enterprises Financing Project (REFP) are gaining momentum, already positively impacting rural entrepreneurs in various regions of the country. With a total budget of USD 72.5 million, of which USD 62.1 million is funded by the International Fund for Agricultural Development (IFAD), the REFP has focused on facilitating access to financial services for rural entrepreneurs in sectors such as agriculture, livestock, aquaculture, and others.
The Credit Line (LoC), following a traditional model with a maximum interest rate equivalent to the minimum rate, aims to reach the impressive goal of 120,000 beneficiaries. So far, approximately 167 beneficiaries in the provinces of Maputo and Gaza have already received financing, totaling about 14 million meticais. These disbursed funds have had a tangible impact on production and productivity in the agricultural sector, enabling the acquisition of inputs and payment for production-related services.
The Investment Mobilization Fund (CiF), adopting a tripartite model involving the beneficiary, the project, and the financial institution, seeks to benefit 20,000 rural entrepreneurs. MozaBanco has been contracted as the fund manager to ensure the efficient provision of financing to the final beneficiaries.
The planned expansion of the credit line’s coverage to all provinces by the end of the current semester highlights the REFP’s commitment to extending benefits to a wide range of rural entrepreneurs across the country. Additionally, the project is evaluating the possibility of providing financing to agrodillers, recognizing the specific challenges that rural populations face when seeking funding.
Future prospects include intensifying outreach efforts for financing opportunities, identifying strategies for financing savings and credit groups (GPCR), and the ongoing strengthening of participating financial institutions. The REFP is firmly committed to driving economic growth in rural areas through facilitated access to financing.