Mozambique SME financing expands with World Bank and UK-backed programs

Subsidies from the World Bank‑supported Catalytic Funds are prompting hundreds of small and medium‑sized enterprises (SMEs) in Mozambique to formalise their operations, improve accounting and meet tax obligations. The Projecto Conecta Negócios alone has disbursed about US$15 million through the Funds of Innovation and Demonstration, part of a broader US$74 million package that has boosted firms especially in the Beira and Nacala corridors. Aderito Mavie, coordinator of the Catalytic Fund unit at the Zambezi Valley Development Agency, said the programme “is, in fact, work that, thanks to the Government and the World Bank, aims to strengthen small and medium enterprises.”

In parallel, the United Kingdom’s Foreign Office is funding a new initiative called Resilience, Adaptation and Innovation (RAIZ), run by FSD Africa, to broaden capital access for early‑stage Mozambican businesses that cannot obtain conventional bank credit. The programme targets climate‑resilient agriculture, the blue economy and renewable energy, offering patient capital, impact‑linked loans and an angel‑investment platform to spur growth and improve the tax base.

Both efforts aim to formalise the private sector, increase competitiveness and expand Mozambique’s fiscal revenue.