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Mozambican micro, small, and medium enterprises (MSMEs) account for 23.4% of the country’s gross domestic product (GDP), contributing to the dynamism of the national economy in several areas
Mozambican micro, small, and medium enterprises (MSMEs) account for 23.4% of the country’s gross domestic product (GDP), contributing to the dynamism of the national economy in several areas.
This segment represents around 97.1% of all companies operating in Mozambique and employs around 46.4% of the formal sector workforce. The figures were given by Minister of Industry and Commerce, Silvino Moreno, who was speaking at the presentation of the proposed MSME Law in the Assembly of the Republic. The law was generally approved, by consensus.
Minister Moreno cited as among the benefits of the proposed law, the expansion of the capacity to generate employment, produce wealth, generate tax income for the state, increase the tax base and economic sustainability, especially in light of MSME’s high degree of resilience.
In this context, the government also recognizes the relevance of MSMEs in the economy as the largest business segment, playing an important role in improving business competitiveness.
In the meantime, the multinational United Bank for Africa (UBA) intends to disburse USD 50 million to support and boost the development of small and medium-sized enterprises (SMEs) in Mozambique. To this end, the head of the Mozambican Confederation of Business Associations (CTA), Agostinho Vuma, and the UBA’s executive director, Rotimi Morohunfola, signed recently, in Maputo, a Memorandum of Understanding.
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The amount will be invested to finance projects in the transport and logistics, agro-processing, and pharmaceutical sectors, starting at 15,000 dollars. This, it is expected, will contribute greatly to boosting the SMEs, considering that they represent 98 percent of Mozambique’s business structure, contributing about 48 percent of jobs in Mozambique.
