Maputo, Sept. 10, 2026 (Lusa) - Mozambique provided funding of €4 million for 260 agribusiness projects in the first half of the year, during which it also approved 92 initiatives valued at €20.1 million to strengthen agricultural and agro-industrial value chains.
According to budget implementation data for the first half of the year, compiled on Thursday by Lusa, the 260 projects were supported through the Innovative Financing Facility for Agribusiness (FINOVA), totalling 297.8 million meticais (€4 million).
The funds are provided by German Cooperation, via the German Development Bank (KfW), and channelled by the Bank of Mozambique in partnership with national financial institutions. The funding is intended for leading companies in value chains, smallholder farmers and micro, small and medium-sized agribusiness enterprises, with the indicative average value of the supported projects reaching around 1.15 million meticais (€15,400) per initiative.
In the document, the Government considers that the implementation of the facility, officially launched in October last year, has helped to broaden access to finance, strengthen the productive capacity of enterprises and improve coordination between producers, input suppliers, processing units and markets.
The report also highlights the approval of 92 projects through the Catalytic Fund for Innovation and Demonstration (FCID) and the MozRural programme. Of this total, 62 projects from the fourth round of the FCID, valued at $19.65 million (€16.7 million), are intended to finance micro and small enterprises in the provinces of Manica, Sofala, Inhambane and Gaza.
A further 30 projects, under the sixth round of MozRural and valued at $4 million (€3.4 million), are aimed at companies producing and supplying seeds and agricultural inputs in the centre and north of the country.
Taken together, these 92 projects represent funding of $23.65 million (€20.1 million), with an indicative average value of approximately $316,900 (€269,400) per project under the FCID and $133,300 (€113,300) per initiative under MozRural.
The document also notes that the programmes for co-funded grants, vocational training and paid work placements, implemented through the Zambezi Valley Development Agency (ADVZ) and the Northern Integrated Development Agency (ADIN), have the potential to create up to 600 direct jobs, as well as generating multiplier effects in agribusiness, community-based tourism and services.
Among the new initiatives during this period, the Government highlights the signing of a €60 million financing agreement for the Green Value for Growth project, aimed at strengthening the soya, coffee and cashew value chains, promoting value addition, increasing competitiveness and expanding exports.
Loans totalling $20 million (€17 million) were also made available to boost seed production, expand storage facilities and support the purchase of agricultural equipment.
FINOVA was launched in October 2025 by the Mozambican Government and KfW, with a total allocation of €45.5 million earmarked for sustainable rural development and the financing of micro, small and medium-sized agricultural enterprises.
At the time, the Government indicated that €33.5 million would be channelled through the Bank of Mozambique, in partnership with ABSA, BCI, Standard Bank, GAPI and Microbanco Confiança, whilst the remaining €12 million would be managed by ADVZ for rural finance, credit guarantees, climate insurance and technical assistance.
The scheme was set up to address the difficulties in accessing finance in the agricultural sector. According to figures presented at the launch, only around 2% of the credit granted by the financial system to the private sector was directed towards agriculture, despite Mozambique having more than 4.5 million agricultural holdings, the majority of which are small-scale.
PVJ/AYLS // AYLS
Lusa
