A $4.5 million MIGA guarantee is supporting an equity investment and a shareholder loan from Banque Nationale de Paris to BNP Nedbank Mocambique SARL. The guarantee offers coverage against transfer restriction and expropriation of funds. The investment will be used for the creation of a corporate and trade finance facility, which will open up lending to more applicants.
In the wake of the civil war and recent floods, banking facilities are key to supporting the country's reconstruction efforts. By expanding BNP Nedbank's operations, the project will strengthen the financial sector and provide additional longterm finance to firms in leading industrial sectors. Training programs, new computer systems, and the introduction of best practices are expected to raise local banking standards.
