The German Government will allocate 45.5 million euros to financing micro, small and medium-sized enterprises (MSMEs) in the agricultural sector in Mozambique, the German Embassy in Maputo announced on Monday.
The support is part of German Development Cooperation, channelled through the state development bank KfW, and will be delivered through the FINOVA programme, to be launched “soon”, according to the official statement.
This new financing mechanism aims to energise Mozambican agriculture with subsidised credit lines, both for working capital and for long-term investment, with interest rates that could reach a maximum of 10% a year.
The proposal is not limited to direct financing: FINOVA also includes insurance against climate risks and specialised technical consultancy services, with the aim of strengthening producers' resilience to the environmental and structural adversities of the sector.
“We believe that FINOVA represents a unique opportunity to finance the future of Mozambican agriculture in an inclusive and sustainable way,” reads the statement from the German diplomatic mission.
This support is part of a broader commitment made by the German Government in 2024, totalling 90 million euros earmarked for new development projects in Mozambique. Of that amount, 10 million euros will be specifically allocated to the Climate and Development Partnership, an axis of bilateral cooperation that aims to respond to the challenges of climate change.
The funds result from intergovernmental negotiations between the two countries, held on 19 and 20 June in Berlin, where the mutual desire to deepen collaboration in key sectors such as agriculture, climate and sustainable development was reaffirmed.
