Financing Opportunities for Energy Access Companies in Mozambique
Access to Financial Services and Products Access to finance is difficult for renewable energy companies in Mozambique due to sectoral and legal framework conditions, high interest rates, required collateral and lack of information. According to World Bank’s Doing Business report, Mozambique scores 25 with regard to getting credit (with 0 being the lowest and 100 the highest score). The degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders, and thus facilitate lending, is especially low with an index of 1 (out of 12). Furthermore, only 7.6% of individuals and firms are listed in a credit registry.[1]
Commercial banks have high lending rates[2], making it difficult for small retailers and micro- or medium entrepreneurs to get access to working capital, e.g. for stocking products. According to the findings of the FinScope MSME Survey Mozambique 2012, about 75% of micro enterprises and 50% of small enterprises lack access to financial services and products in the country.[3]
- ↑ World Bank (2020): Ease of Doing Business in Mozambique https://www.doingbusiness.org/en/data/exploreeconomies/mozambique#
- ↑ U.S. International Trade Administration, “Mozambique -Country Commercial Guide.”
- ↑ Republic of Mozambique (2016): National Financial Inclusion Strategy 2016-2022 https://thedocs.worldbank.org/en/doc/469371468274738363-0010022016/original/MozambiqueNationalFinancialInclusionStrategy20162022.pdf
