Banco Nacional de Investimento (BNI) has formalised its accession to the Fundo Empresarial da Cooperação Portuguesa (FECOP), signing a partnership agreement that includes a credit guarantee line equivalent to approximately US$16 million. The initiative aims to facilitate access to financing for Mozambican small and medium-sized enterprises (SMEs), reduce risks associated with lending, and promote more competitive credit conditions.

According to a statement issued by the bank, the accession was formalised on Friday, 13, through the signing of a contract that strengthens mechanisms supporting business financing, at a time when access to credit remains a persistent challenge for domestic companies.

The agreement was signed on behalf of BNI by the chair of the executive committee, Abdul Jivane, and by executive administrator Edson Manguinhane, as part of the process to operationalise FECOP in Mozambique.

The bank stated that the credit guarantee line is designed to facilitate SME access to financial resources by mitigating credit risk and creating more competitive conditions for the financing of business activities.

The initiative forms part of BNI's broader strategy to strengthen the national business fabric, promote financial inclusion, support job creation, and contribute to the sustainable development of the Mozambican economy.

"Financing is important, but often even more important than financing is technical support," the bank noted.

The accession comes as FECOP — a cooperation mechanism between Mozambique and Portugal — expands its reach with the aim of reducing financing difficulties faced by micro, small, and medium-sized enterprises through credit guarantees, technical assistance, and other business support instruments.

BNI joins two other financial institutions that formalised their accession to the mechanism at the same time — Moza Banco and Microbanco Confiança — bringing the total number of participating banks in the initiative to six.

The expansion of the network of participating institutions comes as FECOP has already approved five investment projects in Mozambique, valued at €382,000, of which €282,900 is covered by the mechanism's financial guarantees.

BNI's participation is expected to broaden the channels through which businesses can access financing, enabling more companies to seek credit solutions to develop their operations and pursue investment projects.

The institution did not, however, detail the access conditions for the guarantee line, the number of companies that could benefit from the mechanism, or the timeline for the disbursement of resources. The announcement also does not clarify whether the figure disclosed corresponds to an allocation assigned exclusively to BNI or to a broader component of the FECOP facility.