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First Capital Bank Moçambique joins Proparco's Trade Finance programme

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FCB Mozambique - Proparco 2024
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Proparco continues to support the supply of essential products in several African countries and joins forces with First Capital Bank Moçambique. The partnership consists of an envelope of guarantees for trade finance instruments of 10 million dollars granted by Proparco to First Capital Bank Moçambique, and reinforces the deployment of Proparco's trade finance programme in the region.

Dependent on imports for its needs in basic foodstuffs (notably rice, wheat, palm oil and sugar) and medicines, Mozambique is suffering the consequences of the Russian-Ukrainian conflict as well as climatic shocks. Financing these supplies is therefore of strategic importance in guaranteeing the country's current needs for essential goods.

Proparco's Trade Finance programme is specifically designed to meet these needs. By guaranteeing Trade Finance instruments issued by First Capital Bank Moçambique and confirmed by correspondent banks, the first beneficiaries of the guarantee, Proparco secures these transactions and facilitates the development of commercial relations between Mozambican importers and African and international exporters.

The project is part of the FARM (Food & Agriculture Resilience Mission) initiative to promote food security. Through its support for African SMEs, the project is also part of Choose Africa, AFD Group's programme to promote African entrepreneurship.

According to Emmanuel Haye, Head of Africa for Proparco's Financial Institutions and Inclusion Division, “Proparco is delighted with this partnership with First Capital Bank, the first bank to join our trade programme in Mozambique, where trade finance tools are essential for strengthening food security, especially in a global context of increased tensions affecting access to essential goods.”

“On behalf of First Capital Bank Moçambique, I would like to express our gratitude to Propaco for their trust in us. Trade Finance is a key area of our business, and this partnership with Propaco will be vital in driving our growth in this segment. We look forward to explore the potential of this partnership.” said João Rodrigues, CEO of First Capital Bank Moçambique, during the signing occasion.