Introduction to Mozambique

Mozambique lies along the South-Eastern coast of Africa with a coastline stretching 2,500 km along the Indian Ocean. The extensive coastline and beautiful turquoise waters combined with the rich culture and traditions of the people make Mozambique especially unique. As an agriculture based country, the major crops being sugarcane, cotton, tobacco and tea, it disposes of abundant natural resources, which include coal, natural gas reserves and minerals - such as gold, precious stones, titanium and bauxite. Peace talks between the Mozambican government and the rebel group, the Mozambican National Resistance, are currently underway to end a war waged by the rebels in August of 2016, which sent thousands of Mozambicans fleeing into Malawi and nearby countries to seek refuge.

MSMEs in Mozambique make up an important part of Mozambique’s economy. In fact, they contribute to 52.1% of the total GDP and employ 42.9% of persons working in the formal sector. In addition, the informal sector is considered to be large in Mozambique, as approximately 75% of the population is engaged in some form of informal economic activity. Trade and manufacturing are the most important activities within the MSME sector. Trade firms make up 57.4% of the total number of MSMEs and 22.9% of sales originate from MSMEs. Agriculture employs most of the labour force among MSMEs, though only account for 1.2% of MSMEs sales.




The technical assistance operation is financed under the Cotonou agreement by the EU in support of EIB.
The Technical Assistance component of the project is implemented in a consortium led by Frankfurt School of Finance & Management.