MOZAMBIQUE - Economy
President, Banco Nacional de Investimento (BNI)
Adriano Maleiane has over 33 years of banking experience having held various positions, namely being Central Bank Governor for 15 years. He is currently the CEO of BNI and also non-executive Director of Tongaat Hullet. Prior to holding these positions he was the non-Executive Chairman of VISABEIRA, a Portuguese group. He holds an MSc in Financial Economics from SOAS, University of London, a BSc in Economics from the Universidade Eduardo Mondlane, and a Diploma in Accounting from Instituto Comercial de Maputo.
Unfortunately, access to credit, especially for national entrepreneurs to fund their participation in megaprojects at different stages (upstream, medium stream, and downstream), is still difficult and the new discoveries of natural resources pose even greater challenges to national credit institutions taking into account their inadequate funding structure, being specialized in short-term lending operations. To mitigate this situation, the government has decided to establish Banco Nacional de Investimento (BNI), a national investment and development institution. In this capacity, BNI provides financial advisory services and finance infrastructure to all sectors of the economy, as well as their respective value chain using its balance sheet funds, or through a co-financing approach. As of December 2012, BNI is 100% owned by the Mozambican government. The main objective is to bridge the government’s development lines of credit to the private and public sectors.
We prepare them for listing on the stock exchange. In Mozambique, the main source of funding for SMEs is the commercial banks, which is not recommendable for seed capital. Therefore, our role is to offer an alternative approach by helping them in IPO operations and taking a minority stake with exiting clauses. This financial arrangement improves SME risk profiles and makes them eligible to be listed in the second stock exchange window and bankable for commercial banks and other financial providers.
It can accomplish that by making sure all stakeholders are involved in every project, especially non-renewable resource projects, and this can be done by setting up friendly legislation and streamlining procedures for starting up and doing business. I am talking about improving the business environment, even considering the huge effort already made by the government in this respect, as investors can now register an SME in a single day.
I think both are very significant. The regulatory framework doesn’t cost anything, so it should be prioritized. For physical infrastructure, it is possible, along with a good regulatory framework, to finance projects using the public-private partnership (PPP) method. With the private sector involved, it is possible to improve infrastructure such as roads and telecommunications, which are vital to boosting the competiveness of the Mozambican economy.
It means that investors’ money in Mozambique is safe and that borrowers can raise external funding and get a lower spread. In this sense, it was a positive move to facilitate development and deepen the capital and foreign currency markets. It also sends a signal that the country’s macroeconomic management is holding, solidifying the country’s risk profile.
The country has grown by around 7% annually for the past decade, and I expect the process to continue. Within five years, I expect GDP to have grown from $12 billion to about $30 billion and fourfold by 2030, taking into account the output of the current investment in mineral resources. This increase in the country’s GDP will consequently increase GDP per capita.
MOZAMBIQUE - Health & Education
Minister of Education and Human Development,
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