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.
| País / Região | Tema | Período | Orçamento |
|---|---|---|---|
|
Mozambique |
Inclusive economic Development nothemedefined
Employment creation
SME development |
01.08.2025
- 30.06.2027 |
CHF 3’600’000
|
- 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.
- 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.
- Other OI
- Foreign private sector South/East
-
DAC Sector OTHER SOCIAL INFRASTRUCTURE AND SERVICES
INDUSTRY
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
INDUSTRY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Employment policy and administrative management
Small and medium-sized enterprises (SME) development
Employment policy and administrative management
Small and medium-sized enterprises (SME) development
Temas transversais Conflict reduction
Tipo de ajuda Mandate with fiduciary funds
Mandate without fiduciary fund
Número de Projetos 7F10843
| Contexto | 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. |
| Objectivos | 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. |
| Grupos Alvo |
Direct: Local business development services (BDS). Indirect: Micro, small and medium enterprises (MSMEs), including women, youth and IDP entrepreneurs. |
| Resultados a médio prazo |
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. |
| Resultados |
Resultados esperados: Resultados das fases anteriores: |
| Direcção / Responsável no Departamento Federal |
SDC |
| Parceiros do Projecto |
Parceiro contractual Other International Organization Private sector |
| Coordenação com outros projectos |
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) |
| Orçamento | Fase do projeto em curso Orçamento suíço CHF 3’600’000 Desembolsos Suíços até à data CHF 919’700 Total Projeto desde a primeira fase Orçamento suíço CHF 4’075’000 Orçamento incluindo parceiros do projecto CHF 7’675’000 |
| Fases do Projeto | Phase 2 01.08.2025 - 30.06.2027 (Fase do projeto em curso) Phase 1 01.01.2022 - 31.07.2025 (Completed) |
