Mozambique to Set Up Funds for Supporting MSMEs

March 30, 2025

(3 Minutes read)

The fund, valued at USD 5 million (€4.6 million), has the support of the World Bank and was announced by the head of state. The fund is meant for ensuring resilience of companies affected by cyclones, demonstrations and to ensure continuance of jobs.

Mozambique’s government announced a USD 5 million fund to support micro, small and medium-sized companies (MSMEs) in the provinces of Nampula, Cabo Delgado and Tete, affected by the recent cyclones and post-election demonstrations.

The fund, valued at USD 5 million (€4.6 million), has the support of the World Bank and was announced by the head of state. The fund is meant to ensure the resilience of companies affected by cyclones, demonstrations and to ensure the continuance of jobs.

Chapo called for safeguarding environmental and social issues in projects financed by public funds, justifying that the demands should be considered an “effort” to make investments “more resilient” to natural disasters. Mozambique is in the middle of the rainy season, which runs from October to April. In addition to Chido, which hit the country on 14 December, cyclones Dikeledi, on 13 January, and Jude, on 10 March, totalled around 170 deaths.

Cyclone Jude, the most recent to affect the country, entered Mozambique through the district of Mossuril. It caused at least 43 deaths, 41 of them in Nampula, and also affected Tete, Manica, and Zambézia in the centre and Niassa and Cabo Delgado in the north. The latest update from the National Institute for Disaster Risk Management and Reduction (INGD) indicated that at least 384,877 people were affected.

According to the most recent estimate by the Confederation of Economic Associations (CTA), almost a thousand Mozambican companies have been affected by the post-election demonstrations, which have impacted the economy by more than 480 million euros and created 17,000 jobs.