The Minister of Planning and Development (MPD), Salim Valá, presided today in Maputo over the launch ceremony for the Innovative Financing Facility for Agribusiness (FINOVA), valued at EUR 45.5 million (forty-five million five hundred thousand euros) made available by German Financial Cooperation through KfW – German Development Bank.
Speaking at the event, Salim Valá said that FINOVA aims to boost leading companies in the value chain and strengthen small rural producers who form the basis of the food system by offering highly concessional conditions, with low interest rates (not exceeding 10% per annum), appropriate grace periods and repayment terms compatible with agricultural and industrial cycles.
The director emphasised that eligible investments include land preparation, irrigation systems, mechanisation, warehouse construction, processing units, transport equipment acquisition and quality certifications.
It should be noted that FINOVA will be operated by five financial institutions, namely: Absa Bank, BCI, Standard Bank, Gapi and Microbanco Confiança, under the technical coordination of the Zambezi Agency and the Bank of Mozambique.
The Zambeze Agency will take over the management of capital guarantees, coordinating agricultural insurance and promoting technical coordination between financial institutions and producers.