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A total of 909 companies affected by cyclones Idai and Kenneth and the COVID-19 pandemic have benefited from technical assistance and business recovery financing in the amount of $2,532,806 (MXN 160,200,000) from the Resilience Fund for Micro, Small and Medium Enterprises (MSMEs), an initiative co-funded by USAID and Gapi and implemented by Gapi.
Of these, the Agriculture and Agribusiness sector deserves special attention, with grants of USD 1,975,731 (MXN 124,965,000), representing 79% of the financing, serving 717 companies, followed by Services, representing 20% of the financing, with grants of USD 481,502 (MEX 30,455,000), covering 185 companies, and Manufacturing and Industry, with beneficiaries of USD 43,952 (MEX 2,780,000), covering 6 companies, representing 1% of the global financing.
“This initiative is part of a broader focus of USAID and Gapi to improve access to finance and resilience of MSMEs, ease credit constraints and support economic recovery in regions severely affected by natural disasters and the pandemic, with a special focus on vulnerable groups such as women and young people” – explains Nância Macaringue, project coordinator.
In fact, 25% of the businesses supported (including training and financing) belong to women. $533,945 (33,772,000 Zambian Shillings) was allocated to support the recovery and resilience of 231 businesses owned or managed by women across the country, with a special focus on the provinces most affected by the cyclone. Still prioritizing young people, 127 companies managed or owned by young people under the age of 29 received approximately $221,028 (13,980,000 Zambian Shillings) in financing.
“It is worth mentioning that, especially for these groups (women and young people), we have designed financial products with characteristics that respond to the main challenges they face. That is why their interest rates are very affordable, varying between 0.75% and 1% per month, and the guarantees are flexible for access and may include goods obtained through financing,” Macaringue stressed.
The North and Central regions were the biggest beneficiaries of the intervention, with $1,317,708 (MKO 83,345,000) in investments, serving 417 companies, or 46%, and $843,731 (MKO 53,366,000) in services, or 42%, for 382 businesses, respectively, of the total disbursements. The Southern region received 12% of the funding provided globally, with $371,368 (ZKO 23,489,000) in financing, covering 110 companies.
With an initial funding of US$4.5 million, of which US$4 million will be disbursed by USAID and US$500,000 by Gapi, the fund is expected to disburse approximately 2,000 loans totaling US$5.6 million (MZN 356,000,000) by May 2025 to MSMEs across the country.
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