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Reading: Small businesses create jobs as private sector drives recovery in northern Mozambique
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Home » Blog » Small businesses create jobs as private sector drives recovery in northern Mozambique
Business & Economy

Small businesses create jobs as private sector drives recovery in northern Mozambique

1 day ago
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CABO DELGADO, Mozambique (XOL Africa) — Small businesses in Mozambique’s northern Cabo Delgado province are creating jobs and expanding production with support from a World Bank Group-backed program aimed at putting private enterprise at the center of the region’s economic recovery.

The CONECTA Negócios project has mobilized more than $5.5 million in private investment through matching grants for hundreds of businesses and supported more than 960 new and better jobs, according to the World Bank.

The initiative comes as Cabo Delgado continues to deal with the economic effects of conflict, displacement and climate-related shocks. Mozambique also has a young population, with about two-thirds of its people under 25, while around 65% of Mozambicans under 35 report looking for work, according to the World Bank.

The program combines financing with business training and technical assistance, targeting micro, small and medium-sized enterprises that face difficulties accessing conventional bank finance because of limited credit histories, inadequate collateral and a lack of expansion capital.

“We have evolved from a small company with a vision for growth into an operation with greater capacity, over 120 employees, and innovative waste management solutions in Mozambique,” said Nazmin Megji, who oversees quality, environment and safety at MozCon, a company supported by the program.

MozCon originally focused on the oil and gas industry but shifted its operations after identifying an opportunity in hazardous waste management. The company is now described by the World Bank as the only firm in the region managing and recycling hazardous solid waste from major regional projects.

The company invested $150,000 of its own capital and received a $400,000 matching grant through CONECTA Negócios. The investment has helped create more than 80 jobs, while the company is developing partnerships with major industry players, including negotiations with French energy company Total.

MozCon is also exploring the use of its waste-processing technology to produce motorcycle fuel.

The program has also provided financing and training to businesses in food processing and agriculture.

Madopera Comercial invested $250,000 to establish a fortified maize flour processing facility in Cabo Delgado, including $75,000 in equity from the company. With grant support, it installed a processing line capable of producing 50 tons of flour a day, compared with 10 tons previously.

“With the support of the CONECTA Negócios Catalytic Fund, we increased our production capacity from 10 to 50 tons per day, doubled our workforce, and are ready to bring our products to the entire country,” said Conde Madopera, the company’s director general.

Madopera now sources maize from more than 60 smallholder farmers, linking the company to local agricultural producers and creating a wider supply chain around its expanding operations.

By April 2026, more than 7,000 micro-enterprises and about 700 small and medium-sized companies had completed targeted training programs through CONECTA Negócios, according to the World Bank.

The training covers business management, production, marketing and preparation for expansion, with some companies also receiving support toward international quality certification.

“CONECTA Negócios gave me the tools to transform my business. I learned how to manage it better, communicate with clients, and prepare my company for growth and new opportunities,” said Zuide Sabibo, a micro-entrepreneur at Nutri Verde.

Douglas Norberto, a manager at Nutri Verde, said the training changed the company’s approach to management and operations.

“The CONECTA Negócios training sessions changed the way we think about and manage the company,” Norberto said. “We created new internal structures, improved our brand, and developed processes to ensure greater quality and competitiveness.”

The World Bank said the program’s approach is intended to create effects beyond individual companies by connecting growing businesses with farmers, suppliers, workers and other local enterprises.

For Cabo Delgado, where economic activity has been disrupted by years of conflict and displacement, the focus on locally owned businesses represents an effort to build employment and income through private-sector activity.

The World Bank said the region’s recovery will take time and that businesses continue to face operational challenges linked to insecurity and limited access to remote areas.

But the project is designed to combine financing, skills development and market access so businesses can continue operating and expanding beyond the period of direct project support.

The World Bank said the experience in Cabo Delgado demonstrates how financing and technical assistance for micro, small and medium-sized enterprises can support job creation in fragile and conflict-affected economies.

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