Maputo 5th August: The regional specialist financial sector development agency, FSD Africa, funded by the UK Government, launched a new programme to finance small and growing businesses across Mozambique. The programme name “RAIZ” (Resilience, Adaptation, and Innovation in Mozambique – “root” in Portuguese) underlines its emphasis on rooting alternative financing options for small and growing businesses in the country in partnership with capital providers, investors and other stakeholders.
Small and growing businesses (SGBs) have often been identified as the engine of Mozambique’s economy, creating jobs and helping the country address the effects of climate change. The launch was officiated by the Minister for Agriculture, Environment and Fisheries, Roberto Miro Albino, the British High Commissioner to Mozambique, Helen Lewis, and the Early-Stage Finance Director at FSD Africa, Juliet Munro.
The Minister hailed RAIZ Mozambique as a unique and timely intervention, explaining that most of the country’s small and growing businesses had limited, and often expensive, financing options, thereby throttling the full potential of such businesses across key sectors, including agriculture, forestry, and fisheries. Innovative businesses which are critical to bolstering climate resilience for Mozambique have not fared better either for a country with a vast coastline stretching more than 2,400 kilometres along the Indian Ocean.
“The RAIZ programme is being launched at a particularly opportune moment, as Mozambique strengthens its commitment to revitalize the private sector and transform the national economy. By expanding access to innovative financing solutions for small and growing enterprises, this initiative can help stimulate entrepreneurship, accelerate business growth, promote the creation of decent jobs, and bolster business resilience in the face of economic and climate-related challenges.” – Roberto Miro, Mozambique Minister of Agriculture, Environment and Fisheries.
British High Commissioner Helen Lewis underscored the strategic need for Mozambique to find innovative ways to nurture its small and growing businesses, which are the backbone of the economy, accounting for nearly 97% of all companies, contributing nearly a quarter of GDP, and providing close to half of all formal jobs in the country. She pledged her government’s continued commitment to partner with the government of Mozambique to avail innovative finance for small and medium-sized businesses in the country.
“The RAIZ programme is a clear example of the UK’s new, investment-focused approach to Africa. By mobilising private capital, our partnership will unlock the potential of Mozambican small and growing businesses, creating jobs and driving private sector-led growth. The UK is proud to support this partnership as an investor, working together to build a more dynamic and prosperous Mozambican economy.”, said Lewis.
Limited financing options for small and growing businesses are also constraining climate- and biodiversity-related enterprises in a country facing severe climate shocks and significant biodiversity loss. RAIZ Mozambique will draw on FSD Africa’s deep experience in developing early-stage finance ecosystems across Africa. The organisation believes that the new programme will help create a pathway for mobilising more private capital into this important component of Mozambique’s financial system.
“We recognise the critical importance of providing appropriate finance to Mozambique’s small and growing businesses, helping them grow, scale and contribute materially to economic growth, while also delivering climate adaptation and resilience-building solutions. Through RAIZ Mozambique, we aim to help build an early-stage finance market that offers these businesses diverse financing options and creates opportunities for both local and international investors to originate transactions that unlock the country’s economic potential while strengthening its capacity to adapt,” said Juliet Munro, Early-Stage Finance Director at FSD Africa.”
RAIZ Mozambique is a market-building initiative combining catalytic capital, technical assistance and ecosystem support to test and scale new financing models, strengthen local investment capability, and crowd in additional public, private and development capital for SGBs over time.
Notes to the Editor
For more information and interview requests, please email Assistant Communications Manager, Allan Musumba, on email address allan@fsdafrica.org .