MAPUTO – Mozambican President Daniel Chapo has committed 60 per cent of the country’s Local Economic Development Fund (FDEL) to young entrepreneurs, with the aim of driving grassroots development across districts and municipalities.
Chapo made the pledge on Thursday during a national conference of the Mozambique Youth Organisation (OJM), the youth wing of the ruling Frelimo Party, where he called on young people to embrace entrepreneurship as a tool to transform their communities.
The FDEL, according to Chapo, will be accessible across all districts and municipalities and is expected to support income-generating ventures by removing the barriers many young people face in accessing formal credit. He described it as part of a broader effort to support small businesses and stimulate job creation.
While the president did not disclose the total budget allocation, his announcement drew comparisons to the now-defunct District Development Fund (FDD), which was introduced by former president Armando Guebuza in the early 2000s. The FDD allocated seven million meticais annually to each district, but most of the loans under the scheme were never repaid, and its long-term impact remains unclear.
Chapo did not address how the FDEL would avoid the pitfalls of the FDD but said additional financing options are in the pipeline, including a Mutual Guarantee Fund and an Economic Recovery Fund, tailored for youth-led businesses.
Calling for self-reliance, he urged members of the OJM to focus on creating solutions rather than waiting for government intervention. He also challenged the youth wing to strengthen its financial independence and build a future-oriented organisation capable of responding to national challenges.
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