Maputo, Sept. 1, 2025 (Lusa) - The German government announced on Monday that it would provide 45.5 million euros in funding for micro, small and medium-sized enterprises (MSMEs) in the agricultural sector in Mozambique.

In a statement, the German Embassy in Maputo said that this was support from German cooperation, through the KfW development bank, and that the financing programme, called FINOVA, would be launched "soon".

The credit aims to boost agriculture in the country through subsidised credit for working capital and investments, with interest rates of up to 10% per year.

The document said that the programme also included climate insurance and specialised consultancy, "to increase producers' resilience".

"FINOVA is a unique opportunity to finance the future of Mozambican agriculture in an inclusive and sustainable way," it concludes.

In 2024, the German government has committed to funding €90 million for new development projects in Mozambique, of which €10 million will be channelled into the climate partnership.

"After the German-Mozambican intergovernmental negotiations in Berlin on 19 and 20 June 2024, it was agreed to continue and deepen the successful cooperation," said the German Embassy in Maputo at the time.

As a result, the German government pledged a total of €90 million for new development projects, of which €10 million will be channelled within the framework of the climate and development partnership.

LYCE/ADB // ADB.

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