Oholo II - Scaling MSMEs through BDS providers


The project aims to increase economic opportunities especially for youth and women in northern Mozambique by promoting the growth of micro, small and medium enterprises (MSMEs). This will be achieved by strengthening the capacity of Business Development Services providers, which support MSMEs to improve their business and financial management practices as well as their access to markets and financial services. 

Pays/région Thème Période Budget
Mozambique
Développement économique inclusif
nothemedefined
Création d'emplois
Développement de petites et moyennes entreprises
01.08.2025 - 30.06.2027
CHF  3’600’000
Contexte Mozambique has faced challenges in converting economic growth into  meaningful reductions inpoverty and inequality, particularly in rural areas and the morthern region. A fast growing population (2.8% annually) faces limited formal job opportunities, pushing many – particularly youth and women – into  low-income, low-productivy informal work. The rural economy relies heavily on  micro, small, and medium enterprises (MSMEs), which connect communities to wider markets and create jobs. While these offer the best short-term job prospects, many face internal weaknesses and external barriers that hinder  their growth. The Business Development Services (BDS) market meant to support them is fragmented and poorly suited to their needs. Since 2024, Switzerland and USAID have worked together to improve MSME performance  and market access, also through strengthened BDS providers. Oholo II will build up on this first phase and support BDS providers to deliver increased and improved services to small, transitioning and medium enterprises who have  the capacity to seek and pay for business services, assuming that with the right support, they can sustain a growth trajectory that drives more job creation, particularly for women and young people.
Objectifs The growth of sector-agnostic MSMEs in northern Mozambique is accelerated through the development of the BDS market system, enabling MSMEs – particularly those owned by youth and women – to thrive as engines of economic growth, job creation and resilience.  
Groupes cibles

Direct: Local business development services (BDS). 

Indirect: Micro, small and medium enterprises (MSMEs), including women, youth  and IDP entrepreneurs.  

Effets à moyen terme

Outcome 1: BDS providers adopt improved practices, diversifying their revenue streams, improving operational management, and financial stability, and accessing to new products and market services. 

Outcome 2: Standards aligned with the new MSME law are developed and used by BDS providers, leading to improved quality of services offered to MSMEs and increased uptake of those services.

Outcome 3: BDS market growth is accelerated, with increased access to finance and market linkages, promoting inclusion and support to MSMEs. 

Résultats

Principaux résultats attendus:  

  • Income of supported BDS from direct payment from MSMEs increase by 25%; 
  • Support to 900 MSMEs, 50% women and 70% young people; 
  • MSMEs supported by BDS providers increase yearly net income by minimum 10% on average; 
  • 600 MSMEs have access to finance and market linkages as a result of engagements with BDS providers. 


Principaux résultats antérieurs:  

  • The BDS for MSMEs expanded from urban to rural areas with operations in four provinces (Zambezia, Nampula, Niassa and Cabo Delgado);  
  • A network of BDS providers (RECAE) with 28 founding members was  established to strengthen the entrepreneurial ecosystem, and enhancing the operational capacity; 
  • The BDS providers used the adapted training curriculum to support 2,390 enterprises (68% youth and 58% women) in northern districts of  Mozambique without direct project involvement (sustainability and scalability); 
  • 52% of the supported MSMEs have diversified their revenue streams; 
  • 41% increase of average sales of the MSMEs supported by BDS providers.  


Direction/office fédéral responsable DDC
Partenaire de projet Partenaire contractuel
Autre organisation internationale
Secteur privé
  • Other OI
  • Sectreur privé étranger Sud/Est


Coordination avec d'autres projets et acteurs

SDC projects: PROMAS, SIM!, Futuro Mcb 

Other donors: World Bank, Sweden, AfDB 

Public sector: Institute for Promotion of Small and Medium Enterprises (IPEME), National Authority for Vocational Education (ANEP), National Institute for Standardization and Quality (INNOQ), Agency for the Integrated Development of the North (ADIN), Coordination Unit of Integrated Development of Nampula (UCODIN) 

Private sector: Confederation of Business Associations (CTA), Mozambican Development Finance Institution (GAPI) 

Budget Phase en cours Budget de la Suisse CHF    3’600’000 Budget suisse déjà attribué CHF    919’700 Projet total depuis la première phase Budget de la Suisse CHF   4’075’000 Budget y compris partenaires de projet CHF   7’675’000
Phases du projet Phase 2 01.08.2025 - 30.06.2027   (Phase en cours) Phase 1 01.01.2022 - 31.07.2025   (Completed)