Mozambique launches Rural Enterprise Finance Line to boost rural economy

The Mozambican government has launched the Rural Enterprise Finance Line (LFER) to expand access to credit for producers, entrepreneurs, and businesses in rural areas. Announced by Minister of Planning and Development Salim Valá in Nampula, the initiative aims to drive structural economic transformation and foster a more diversified and inclusive economy.

Developed in partnership with the International Fund for Agricultural Development (IFAD), the LFER succeeds the Rural Entrepreneurship Financing Project (REFP). The program is designed to align with the National Development Strategy 2025-2044 and the National Financial Inclusion Strategy 2025-2031. A key objective is to ensure that credit is deployed in a sustainable and affordable manner, specifically targeting women and young entrepreneurs.

The financing structure includes bank credit through commercial banks, microbanks, and local development institutions. The government emphasizes the importance of capital rotation, with Minister Valá stating that recovered funds should be used to create continuous capacity to finance future entrepreneurs.