Sharon Cox (202) 473-2035
Adelia Chebeia (258-1) 492 841
WASHINGTON, January 28, 2000âThe World Bank yesterday approved a US$26 million credit to strengthen the participation of Mozambique's private sector in the country's economic growth.
The Enterprise Development Project will support the Government's program of reforms to address a wide variety of continuing weaknesses in its business environment. The project will focus on:
· boosting the competitiveness of Mozambican private firms by strengthening their access to and use of support services external to the firm;
· providing a more efficient market for training and capacity building services and establishing linkages to existing local and foreign buyers and investors;
· enhancing access to term finance by both first-time and other borrowers; and
· strengthening the capabilities of the Ministry of Industry, Trade, and Tourism, the Investment Promotion Center, and business organizations to improve the business environment.
Mozambique has successfully undertaken a series of economic reform programs which is providing a stable environment for growth. However, small to medium sized businesses still face constraints relating to the development of business strategies, technical know-how, markets, finance and Government regulations. By addressing these constraints, the project will help improve the competitiveness of approximately 200 small to medium sized businesses in the manufacturing, agro-processing, and handicraft sectors.
The Enterprise Development Project will be financed by a US$26 million equivalent credit from the International Development Association (IDA), the World Bank's lending arm for the poorest countries. The IDA credit is on standard terms of 40 years maturity, including 10 years grace. The Government, beneficiaries and donors will finance the project with an additional US$21.6 million.
To obtain project documents please contact the World Bank's Infoshop at tel: (202) 458-5454, fax: (202) 522-1500, email: Enquiries