UK supports economic development in Mozambique
8 May 2014 04:09 PM
Market traders and
businesses in Mozambique will benefit from two initiatives to improve access to
financial services and health care provision in the country, International
Development Minister Lynne Featherstone has announced in a visit to the
country.
The Department for International
Development is leading a new multi-donor access to finance programme which will
make £13.5 million available to expand access to banking services,
advice, savings and credit facilities in Mozambique so that the sector works
better for consumers.
Nearly 80% of Mozambicans are
locked-out of formal financial services. The new programme will allow 650 small
and medium enterprises and more than two million poor Mozambicans, including
women, to access a wide range of formal financial services and products so they
can better manage their business and household budgets.
Small businesses will also
indirectly benefit from £2 million of DFID funding to Population Services
International (PSI) to help increase choice and access to health products in
communities. The funding will allow PSI to use a network of health promoters,
small businesses and clinics to provide health and family planning products and
services in their communities.
The system uses vouchers and
transactions on mobile phones so that people can access services free, in
places and at times they choose. Small businesses benefit from the service by
generating an income from distributing the products.
International Development
Minister, Lynne Featherstone, said:
The only way for developing
countries to end their dependency on aid is through growth that creates more
jobs and increases tax receipts. Having formal financial services and systems
in place and making use of innovative tools that allow small community traders
to build their businesses locally are vital stepping stones to economic growth
that will ultimately allow people to pull themselves out of
poverty.
The funding announcements were
made as part of a three-day visit to Mozambique by International Development
Minister Lynne Featherstone to address issues related to economic empowerment
and development and social protection for girls and women.
During her stay Ms Featherstone
will also visit a farm supported by DFID, which has been providing chillies to
Nandos UK for their Peri-Peri Sauce. This programme has seen 39 metric-tonnes
delivered to Nandos UK from Mozambique and has trained around 300 farmers in
transferrable agricultural production skills, a number of whom are now
providing vegetables to Spar supermarkets.