Maputo — The Confederation of Mozambican Business Associations (CTA) on Thursday announced that the Bank of Mozambique has approved creation of the Business Development Support Fund (FADE).

"The adoption of this measure will help bring greater fluidity to the productive sector from the excess liquidity reported in the national finances of about 60 billion meticais (about 940 million US dollars) which will represent an alternative form of financing and strengthen the productive and competitive capacity of our businesses', claimed the CTA chairperson, Agostinho Vuma, speaking in Maputo on Thursday morning at the start of this year's edition of the Annual Private Sector Conference (CASP).

Vuma said the central bank's decision will be a corner stone for promoting wide-ranging business access to the new Fund, as well as to the Guarantee Fund already announced by the government.

He claimed the Fund results from the CTA's advocacy for the creation of financial instruments expanding the availability of credit for businesses trying to mobilise larger investments.

FADE, he added, will allow private businesses to increase their production and productivity.

The Fund is intended to promote the inclusion of Small and Medium Enterprises (SMEs) in the local economy, covering their financial needs and other constraints, which are compromising the effective offer of goods and services in the supply chains of large companies and mega-projects.

CASP is projected as a moment for Mozambican private business to hold a dialogue with the government at the highest level (President Filipe Nyusi spoke at the opening session). It discusses the business environment and measures to make the country more attractive to investors.