Mozambique Launches Local Economic Development Fund

The President of  Mozambique, Daniel Chapo, has officially unveiled the country’s Local Economic Development Fund.

The Local Economic Development Fund, according to the Mozambican government, is anew financial instrument aimed at fostering youth entrepreneurship and strengthening district-level economies.

Speaking at the launch of the fund in Maputo, the capital of Mozambique on Thursday, July 31, 2025, President Chapo says the fund would prioritise young applicants, with 60 percent of financing earmarked for youth-led projects.

According to him, individual applicants would receive between 20,000 meticais (about $310) and 200,000 meticais, while cooperatives and micro-enterprises can access up to 500,000 meticais.

The President says “The State does not have much money but it has decided to provide this money to the people so that they can have means of working, producing income, creating jobs and developing the local economy.”

The initiative would target aspiring entrepreneurs who lack access to commercial loans, offering support for viable ventures in municipalities and districts across the country.

Unlike previous state mechanisms such as the District Development Fund – which suffered from widespread defaults – the new fund would operate on strict repayment terms.

Loans are expected to carry a five percent interest rate and must be reimbursed within 12 to 24 months.

To avoid past challenges, beneficiaries would be screened for outstanding debts to public funds.

The first round of financing is expected to begin in September.

Source:Africa Publicity