BCI creates an Environmental Credit Line

On July 11, at the Commercial Bank of Investments’s (BCI) Auditorium in Maputo, the Deputy Minister of Land, Environment and Rural Development, Celmira da Silva, officialised the launch of the BCI Environmental Credit Line.

Celmira da Silva said that the Ministry has placed this financing opportunity as one of the major programs and projects in Mozambique joining others in the environmental area in order to preserve the environment and allow a balanced development. Celmira da Silva appealed to the private sector to invest in clean energy and environmentally friendly technologies, as they bring enormous gains to the Mozambican economy, reinforcing that environmental issues are an opportunity that companies must seize.

Paulo Sousa, Chairman of the Executive Committee (PCE) of BCI stated that the credit line is very extensive and intended to both Individual Clients and Individual Entrepreneurs (MSMEs), if their end is the financing of projects for energy production off-grid.

He also explained that this Credit Line starts with the amount of 3 million Euros, that can be made in short and medium-term operations and leasing of movable property operations. These operations are in Meticais and the term can be up to 5 years, with a limit, for individuals, up to 5 million Meticais, and for companies up to 20 million Meticais, at a 15% fixed rate.

On behalf of the Mozambican Association of Renewable Energies (AMER), Miquelina Menezes, also ALER’s President, praised the initiative and said that this is an important moment for the energy sector, since now there is an instrument available for the development of renewable energy, because so far most renewable energy projects are developed by public entities, precisely because there are no financial conditions for the involvement of the private sector.

This Credit Line is part of the Agreement to finance the Sustainable Economic Development Program, promoted by the financial sector, signed in 2012 between the governments of Mozambique and Germany, said Victor Gomes, Deputy Governor of Bank of Mozambique. Under this program the German government, represented by the German Bank for Reconstruction Credit (KFW) provides financial support, and the Mozambican government, represented by the Bank of Mozambique, executes the credit lines for the promotion of Micro, Small and Medium-Sized Enterprises (SMEs) and renewable energy and energy efficiency products.

According to the German Ambassador in Mozambique, Detlev Wolter, the country has an enormous potential in renewable energy that should be used to increase access to energy for the Mozambican people. He further stated that all partners believe that the private sector will play a crucial role in the development of these resources, noting that German financial cooperation through KFW has provided a total of around 60 million euros for projects in support to private sector and financial sector in Mozambique, as well as long-term technical support.

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