The African Development Bank (AFDB)’s Board of Directors has approved a $1-million African Private Sector Assistance Fund (FAPA) grant to the government of Mozambique to finance the Nacala Corridor Business Linkages Technical Assistance Project (NCBLTAP).
The project, according to AFDB’s website is in line with the bank’s effort to promote inclusive private sector development and SME linkages with large investments. It aims to promote corridor economic development through the integration of economic activities within infrastructure development along the corridor.
The bank said it has made various infrastructure investments to support the corridor. “In order to strengthen the inclusiveness of these investments, we’ve designed two technical assistance projects, a value addition project in Malawi and a business linkage project in Mozambique.”
The Mozambique NCBLTAP is aimed at improving the efficiency and competitiveness of SMEs in the construction sector situated in the Nacala Corridor and to take advantage of business opportunities provided by the Nacala rail and port projects and other large construction investments.
“The project is designed to complement the bank’s private sector Nacala rail and port project in order to support inclusive and sustainable economic growth along the Nacala corridor,” said AFDB.
“In the next three years, the project will strengthen the business management skills, strengthen industry knowledge and know-how of selected SMEs in the construction industry through training, coaching, mentorship and other support activities.”
According to the bank, these activities will help SMEs to attain competencies required to satisfy requirements and standards of larger partner companies; provide institutional capacity building, and build strong networks and stakeholder platforms for construction sectors.
“We nee these activities to build a continuous dialogue with the government, banks, insurance, tax administration, training institutions and the large private sector operators on various aspects that will further business growth in Mozambique,” AFDB concluded.