The Governor of the Bank of Mozambique, Ernesto Gove, asked four banks operating in the country to offer more affordable interest rates to small- and medium-sized enterprises (SMEs), reports local newspaper Notícias.

Mr Gove was speaking to reporters after signing agreements with the four local institutions, including Banco Commercial e de Investimentos, Millennium bim, MozaBanco and Banco Oportunidade de Moçambique. The lenders are to take part in a programme under a new credit line for the financial sector granted by the German Government to support the development of SMEs in Mozambique.

Under the agreement with German state-owned development bank KfW, the Bank of Mozambique is responsible for overseeing a part of the programme involving a credit line worth 18 million euros (US$22.4 million).

The funds are intended to finance credit lines to support the development of SMEs, especially to provide technical assistance ensuring the proper use of the grants.

“The four signatory institutions were included because they met the requirements to serve as intermediaries for financing such credit lines,” Mr Gove was quoted saying.