Mozambique: Difficulty Accessing Financing Remains Obstacle to Business Growth
Maputo — Difficulty in accessing finance is one of the main obstacles to the growth of small and medium-sized enterprises (SMEs), according to Mozambique’s Confederation of Business Associations (CTA).
According to the economist Egas Daniel, CTA representative, who was speaking on Thursday, in Maputo, countless economic activities generate wealth, create jobs, and add value to the national economy, yet remain virtually invisible to the formal financial system.
Daniel believes that digitalization should be crucial, but “many companies lack structured data, digital records, financial histories, or other mechanisms that would allow financial institutions to accurately assess risk and recognize their true economic potential.”
“Thousands of small and medium-sized enterprises, agricultural producers, logistics operators, service providers, and entrepreneurs remain excluded from access to finance, a resource essential not only for expanding their businesses but also for ensuring their sustainability”, he said.
Daniel highlighted that a company equipped with digital transaction records, payment histories, integration with electronic platforms, production traceability systems, and appropriate governance mechanisms reduces information asymmetry and boosts the confidence of financing institutions.
According to the economist, data has become a strategic asset, as it enables more rigorous risk assessment, the development of financial products better tailored to market needs, expanded access to credit, reduced intermediation costs, and the inclusion of a greater number of businesses and citizens in the formal financial system.
He also said that Mozambique has made progress in the digitalization of payments and the expansion of electronic money. “The next major challenge lies in leveraging this digital transformation to boost economic financing and ensure that small and medium-sized enterprises have access to the resources needed to grow and contribute more significantly to the country’s development.”
By AIM.
