The partnership between the two institutions arises from Millennium bim's support for local content, through the LinKar programme of the National Hydrocarbons Company
Millennium bim, a leading credit institution in Mozambique, and the National Hydrocarbons Company (ENH), the State's commercial arm in the oil and gas industry, announced in Maputo on 1 August 2023 the signing of a strategic Memorandum of Understanding (MoU), marking an important commitment to the country's economic development and to the promotion of local content in the oil and gas industry, while also making it possible to leverage the organisational, technical and financial capabilities of Mozambican Small and Medium-sized Enterprises (SMEs). The MoU was signed by the Chairman of the Executive Committee (CEO) of Millennium bim, João Martins, and the Chairman of the Board of Directors of ENH, Estêvão Pale.
The aim of this partnership is to strengthen collaboration between Millennium bim and ENH, with a focus on the successful implementation of the LinKar Programme, a pioneering ENH initiative whose central vision is to transform the country economically by stimulating and facilitating productive links between SMEs and the evolving oil and gas companies, thereby multiplying national benefits and investment in the sector.
Main provisions of the Memorandum of Understanding (MoU):
1 - Local content development: The MoU aims to promote local content in the oil and gas industry, enabling Mozambican SMEs to take an active part in the sector. Implemented by ENH, the LinKar Programme, which runs for 8 years, aims to work, collaboratively and constructively, towards the consolidation and participation of national businesses in the gas industry, as well as in other industries with major projects under way in the country.
2 - Access to financial products and services: Millennium bim will grant special terms of access to the financial products and services offered to SMEs previously identified by ENH under the LinKar Programme. This includes financial assistance for activities related to the supply chain, support in obtaining certifications essential for competitiveness in the value chain, as well as access to training, capacity-building and activities led by the Bank for preferred customers.
3 - Empowerment of young people and women: The LinKar Programme is committed to promoting the empowerment of women, setting a specific target of 30% of the gains/benefits for the Women-Owned Businesses (WEBs) involved in the programme. This initiative aims to foster the active participation of Mozambican women in the oil and gas sector, contributing to more inclusive and sustainable economic growth.
On the occasion of the signing of the memorandum, the CEO of Millennium bim, João Martins, said: "We are delighted to enter into this strategic partnership with ENH through this Memorandum of Understanding. This collaboration is a significant milestone for Millennium bim, as it allows us to contribute actively to Mozambique's economic development and to support the innovative LinKar Programme initiative. We are committed to providing special terms of access to our financial products and services for the Small and Medium-sized Enterprises identified by ENH, with a view to fostering the growth of local content in the oil and gas industry. Together, we hope to drive sustainable progress and create new opportunities for the Mozambican business community”.
For his part, the Chairman of the Board of ENH, Estevão Pale, noted: "This Memorandum of Understanding plays a fundamental role because, through it, Mozambican SMEs will have access to Millennium BIM's financial services on preferential terms. Together, ENH and Millennium BIM will work to create opportunities and favourable conditions so that SMEs can offer quality services and develop the national oil industry; and, likewise, so that SMEs can thrive and contribute actively to the sustainable growth of our country. To Millennium BIM, for sharing this vision and for its willingness to support Mozambican SMEs, our heartfelt thanks. We are certain that this partnership will be fruitful and will bring significant benefits to all parties involved.”.
The MoU between the Bank and ENH came into force on 1 August, the date of its signing, and will remain in force for a period of 1 year.
