“We will bring the money to the districts, including here in Mocuba, so that youth, women, and men can have loans and do business,” announced President Daniel Chapo during a three-day visit ending today in the province of Zambézia, central Mozambique.
The measure, as stated by the Mozambican executive, represents a “strategic step in the governance agenda focused on economic decentralization,” as well as the enhancement of young human capital and the encouragement of community-based entrepreneurship.
According to Daniel Chapo, the FDEL will have a “robust budget component” with 60% of its resources specifically targeted at Mozambican youth, aiming to stimulate innovative ideas, promote small and medium productive initiatives, and create sustainable jobs in communities.
“This fund will galvanize local development with a direct impact on people’s lives. But we want to give special attention to the youth, as they represent the energy and creativity necessary to transform our country. We are talking about a fund born with an inclusive spirit and a forward-looking vision,” Chapo stated.
The FDEL will be managed in collaboration with district governments, municipal councils, cooperatives, and local financial institutions, ensuring that financial support swiftly and transparently reaches communities, especially rural and semi-urban areas, prioritizing agriculture and agro-industry, local tourism, food processing, artisanal fishing, renewable energies, digital technologies, and local commerce.
Specific incentives are also planned for projects led by women and recently graduated young entrepreneurs.
“Our vision is clear: we want a State that not only governs but empowers, investing directly in communities. With this fund, development will no longer be just a plan in Maputo but will become a reality experienced in Muidumbe, Morrumbala, Metangula, Chókwè, Memba, and many other districts of this country,” Chapo emphasized.
The fund’s regulations outline funding sources beyond the State Budget and public entities, including “reimbursement of loans granted and respective interests,” cooperation partners, “funds offered by philanthropic institutions,” or “within the scope of social responsibility for large projects and companies,” among others.
The document, dated March 5, approved by the council of ministers, mandates that each district or municipality “dedicates at least 60% of the FDEL’s resources” to funding youth individual or associative initiatives. The remaining 40% will be allocated to “economic projects led by women.”
The financing model is based on providing “loans refundable to entrepreneurial initiatives at a subsidized interest rate,” which “must follow a co-participation model by the beneficiary,” with terms to be defined later.
“The loans granted are subject to a subsidized interest rate, to be set by Joint Order of the ministers overseeing Planning and Development and Finance areas,” the FDEL regulation specifies.
The Mozambican government announced on February 21 the allocation of over 13 million euros to the FDEL, created as part of measures planned for the first 100 days of governance under the new Head of State, Daniel Chapo.
“For this initial phase, one billion meticais [13.3 million euros] are available for the commencement of this Government measure,” announced Government spokesperson Inocêncio Impissa.
