The Metarica District Government in southern Niassa is concerned about the low repayment rate of funds granted through the Local Economic Development Fund (FDEL), a new financing instrument designed to support economic initiatives and help improve living conditions in Mozambican communities.
The concern was raised this Monday during a meeting with borrowers led by the Administrator of Metarica District, Saleão Gabriel, who demanded greater accountability from beneficiaries and called for tighter oversight of funded projects.
At the end of last year, Metarica authorities approved 48 projects under the FDEL, with the respective funds disbursed in March of this year. According to the guidelines set out in the project manuals, several initiatives—particularly in catering, commerce, and services—were scheduled to begin repayments within two, three, to six months after implementation.
However, six months after funding was issued, only one of the 48 borrowers has made their first installment payment, a situation that deeply concerns the district government.
Gabriel noted that delayed repayments threaten the core objective of the FDEL, as recovered funds are intended to finance other citizens whose projects are awaiting approval, thereby sustaining a cycle of local economic development.
The administrator attributed part of the problem to weak oversight and monitoring, faulting the technical evaluation team for failing to adequately follow up on how initiatives are being carried out in the communities.
To reverse this trend, Gabriel issued a 15-day deadline for non-compliant borrowers to settle their affairs and begin paying back the funds.
In response, the head of the Technical Project Evaluation Commission, Manuel André, reaffirmed the team's commitment to strengthening oversight and monitoring so beneficiaries meet their contractual obligations.
The primary challenge now is ensuring the FDEL fulfills its mission: converting financial assistance into sustainable businesses, jobs, and improved living standards for local families. (Ma Mataka)
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