Building a sustainable system for MSME development in northern Mozambique – PREMIER-Oholo (PRO)
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 improving their business and financial management as well as their access to markets, finance and business development services.
| País / Região | Tema | Período | Orçamento |
|---|---|---|---|
|
Mozambique |
Employment & economic development Other nothemedefined
Employment creation
Sector not specified SME development Business support & economic inclusion |
01.01.2022
- 30.06.2027 |
CHF 7’869’500
|
- 10’675 Micro, small and medium enterprises (MSMEs) in Northern Mozambique, including women and youth entrepreneurs
- Large enterprises to pilot and scale inclusive business models
- Local business development service providers to build the capacity of MSMEs
- Capacities of business development service providers are strengthened with an improved product portfolio and a financially sustainable business plan.
- MSMEs and large companies receive capacity building technical assistance and increase their knowledge of business and financial management.
- Private companies create more formal relationships with farmers and MSMEs.
- Financial institutions increase their outreach and develop new products for financing for MSMEs, youth and women entrepreneurs.
- 308 micro and small enterprises trained in business skills in Nampula and Pemba
- 95% of the trained entrepreneurs adopted improved financial and business practices
- Increased savings for MSMEs (70% increase on average)
- As a result, their revenues grew by an average of 87% and 66 new jobs (38% women) were created
- It is critical to have well–functional local business development services to support MSMEs’ growth
- There are only very few business development service providers in Northern Mozambique and they are weak
- Many large companies want to be more inclusive but don’t know how to do so
- Other OI
- Foreign private sector South/East
- Swiss Private Sector
- Technoserve
-
DAC Sector OTHER SOCIAL INFRASTRUCTURE AND SERVICES
Unallocated / Unspecified
INDUSTRY
BUSINESS & OTHER SERVICES
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Employment policy and administrative management
Sectors not specified
Small and medium-sized enterprises (SME) development
Business support services and institutions
Temas transversais Conflict reduction
Tipo de ajuda Mandate without fiduciary fund
Project and programme contribution
Número de Projetos 7F10843
| Contexto | Mozambique is one of the poorest and least developed countries in the world. High poverty, inequalities, and severe lack of economic opportunities create a sense of social exclusion, especially for youth. Social exclusion is one among other drivers of the conflict in Cabo Delgado attracting young people to join insurgent groups. More than 150’0000 youth enter the labour market every year in northern Mozambique (500’000 youth in whole Mozambique) and the private sector does not generate jobs at the same rate. Many youth turn to vulnerable (self-)employment, mainly in the informal sector as a livelihood. The development of MSMEs can be a vehicle to improve economic opportunities for youth and women and indirectly contribute to stability. MSMEs are struggling to grow due to poor business skills, difficult access to finance and markets and a challenging business environment. The project is the only donor funded program in Mozambique with a holistic approach to developing the market system for local business development services and other service providers that MSMEs need to thrive. |
| Objectivos | Increase incomes and employment in target areas of the Nacala Corridor, inclusive of women and youth. |
| Grupos Alvo |
|
| Resultados a médio prazo |
Outcome 1: Businesses respond to evolving end market demands via improved business management practices that put them on a growth trajectory/pathway. Outcome 2: Businesses scale viable commercial and inclusive sourcing models via improved value-add market/supply chain infrastructure and policy environment. Outcome 3: Financial institutions increase/improve lending and investment products/services for suppliers to meet their needs. Outcome 4: Business development service providers deliver increased/improved services to MSMEs and women- and youth-owned enterprises. |
| Resultados |
Resultados esperados: Resultados das fases anteriores: Results (preparatory phase): Insights: |
| Direcção / Responsável no Departamento Federal |
SDC |
| Parceiros do Projecto |
Parceiro contractual Other International Organization Private sector |
| Coordenação com outros projectos |
SDC projects: PROMAS, Futuro Mcb, SIM Other donors: USAID, World Bank Public sector: regulating the business environment |
| Orçamento | Fase do projeto em curso Orçamento suíço CHF 7’869’500 Desembolsos Suíços até à data CHF 3’820’315 Total Projeto desde a primeira fase Orçamento suíço CHF 554’500 |
| Fases do Projeto | Phase 1 01.01.2022 - 30.06.2027 (Fase do projeto em curso) |
