Design and Feasibility Study for a Credit Guarantee Scheme for SMEs in Mozambique
Area of Operation: Mozambique
Duration of Assignment: March 2023 – Present
Name of Client: Ministry of Economy and Finance, Mozambique (National Directorate of Treasury and Economic and Financial Cooperation)
With no currently public-sponsored credit guarantee scheme (CGS) for SMEs in Mozambique, the Ministry of Economy and Finance in Mozambique seeks to establish a universal CGS with support from the World Bank-finance Financial Inclusion and Stability project (FISP).
Specifically, the Ministry of Economy and Finance in Mozambique sought a consultant to conduct a detailed assessment and prepare a draft business plan to inform the design and establishment of an effective and efficient universal CGS that can sustainably expand financing sources for SMEs in Mozambique.
- Preparing a detailed methodology and workplan for the market sounding phase.
- Drafting interview guidelines and questions for FIs and stakeholders and determining the initial list of FIs and stakeholders for interviews.
- Conducting a market-sounding evaluation to understand the barriers to access finance among SMEs and the conditions created by the current regulatory framework.
- Conducting interviews and quantitative questionnaires with financial institutions, developments partners and SME finance programs and with other stakeholders e.g., Bank of Mozambique, the World Bank and others.
- Conducting a literature review to analyse sectors trends, SME major obstacles to financing and to gather benchmark data points.
- Analysing the legal and regulatory framework for UCGS – UCGS design matrix with the options for the facility design, legal set-up and organizational structure, including draft organizational charts.
- Designing a legal and institutional comparative matrix.
- Developing an organizational chart, including governance and ownership structure.
- Determining the mandate, value proposition and business model.
- Designing a logical framework, the M&E framework with indicators matrix, term sheets for the core guarantee products, the pricing policy, and the eligibility criteria of PFIS and selection methodology and the eligibility criteria of SMES.
- Mapping of potential partners and summary of cooperation approach.
- Conducting human resources needs’ analysis and job descriptions for CEO, CFO, CRO; COO.
- Designing financial model and assumptions.
- Establishing roadmap for implementation.