Sociedade de Garantias de Moçambique seeks new funding to expand MSME credit

The Sociedade de Garantias de Moçambique (SGM) is seeking new financing to expand its Mutual Guarantee Fund, which aims to increase credit access for micro, small, and medium-sized enterprises (MSMEs) in Mozambique. SGM President Beatriz Freitas stated that the institution expects to mobilize additional resources or create a new fund within approximately one year.

Funded by a US$120 million allocation from the World Bank, the mechanism has supported approximately 630 companies since its inception, with no recorded defaults to date. The fund operates through partnerships with Banco Comercial e de Investimentos (BCI), Standard Bank, and Absa Bank. The long-term goal is to facilitate financing for 15,000 domestic companies and contribute to the creation of over 20,000 jobs over seven years.

Key priorities for the fund include supporting projects led by women—who currently represent at least 40% of supported businesses—as well as sectors such as renewable energy, environmental conservation, tourism, commerce, and agriculture. SGM is also working to expand its geographic reach beyond the Maputo province and is studying the creation of credit lines to address climate risks.