The income of more than half of the people living in rural areas is below the poverty line. Almost 99 per cent of all companies in Mozambique are micro, small and medium-sized enterprises MSMEs. Many operate on an informal basis and are unable to create sufficient jobs or provide the people with adequate goods and services.
This is due to unfavourable economic conditions, inadequate access to financial services and insufficient involvement of these companies in value chains. MSMEs take advantage of better framework conditions for growth that benefits all sections of the population. As a result, employment in Mozambique increases, incomes rise and poverty is reduced. In , European Union funding enabled the project to expand its activities to Nampula and Zambezia in addition to the previous provinces of Inhambane, Sofala and Manica.
Objective MSMEs take advantage of better framework conditions for growth that benefits all sections of the population. Approach The project comprises three fields of action: Together with the Mozambique Ministry of Industry and Trade and other governmental and private-sector implementation partners, the project supports reforms that improve the business climate and the range of public services available to MSMEs.
The project promotes inclusive business models through development partnerships with numerous national and international companies, with the aim of integrating MSMEs into their supply chains and improving services.
The concept of inclusive business models is disseminated through national networks. It focuses on the development of innovative financial products and distribution models for MSMEs in rural areas. Last update: December Additional information. Improved framework conditions for a competitive private sector in Mozambique GIZ
