With the approval of Law No. 20/2020, of December 31, Credit Institutions and Financial Companies Act, a new type of financial company was established, namely Mutual Guarantee Companies.

On the other hand, the Loan Guarantee Fund for promoting easier access to financing for Micro, Small and Medium-Sized Enterprises (MSMEs) was created by Decree No. 37/2024, of June 10.  In view of this, in order to manage the Mutual Guarantee Fund, a new type of financial company was established, the Mutual Guarantee Fund Management Companies, by Decree No. 38/2024, of June 10.

Mutual Guarantee Companies aim to contribute to the leveraging of the national economy by making access to credit flexible through the establishment of a mutual MSMEs support scheme based on guarantees and counter-guarantees. For their part, Mutual Guarantee Fund Management Companies aim at the management of Mutual Guarantee Funds, as well as the conduct of other legally permitted operations.

In order to operationalize these two new types of financial companies, their minimum share capital needs to be set, a key element for financial institutions to be able to absorb potential losses and carry out their activities efficiently. 

This backdrop supported the approval of Notice No. 11/GBM/2024, of August 30,which establishes the minimum share capital of mutual guarantee companies and mutual guarantee fund management companies, established at thirty million meticais for each type.

Read the Notice, here.