Mozambican President Daniel Chapo on Thursday officially launched the Local Economic Development Fund, a new financial instrument aimed at fostering youth entrepreneurship and strengthening district-level economies.
Speaking in Maputo, Chapo said the fund would prioritise young applicants, with 60 percent of financing earmarked for youth-led projects.
Individual applicants would receive between 20,000 meticais (about $310) and 200,000 meticais, while cooperatives and micro-enterprises can access up to 500,000 meticais.
“The State does not have much money but it has decided to provide this money to the people so that they can have means of working, producing income, creating jobs and developing the local economy,” Chapo said.
The initiative would target aspiring entrepreneurs who lack access to commercial loans, offering support for viable ventures in municipalities and districts across the country.
Unlike previous state mechanisms such as the District Development Fund – which suffered from widespread defaults – the new fund would operate on strict repayment terms.
Loans are expected to carry a five percent interest rate and must be reimbursed within 12 to 24 months.
To avoid past challenges, beneficiaries would be screened for outstanding debts to public funds.
The first round of financing is expected to begin in September.
JN/APA