Gapi’s Corporate Governance and Financial Capacity Reinforced

Gapi-SI shareholders approved amendments to the statutes to strengthen good corporate governance practices. The changes, among many aspects, consolidate and clarify the functions of its governing bodies and the object of its activity as a Development Finance Institution.

With 30 years of experience in implementing financing and technical assistance programs for the development of small and medium-sized enterprises as well as financial inclusion, we have the maturity and reputation to face the challenges the country is going through and mobilize more resources that contribute to the inclusive development of Mozambique” said António Souto, recalling that it was in mid-1988 that the Friedrich Ebert Foundation of the Federal Republic of Germany and the People’s Development Bank joined forces to start the creation of Gapi.

The new statutes incorporate rules inserted in the recent amendments to the Commercial Code, as well as the recommendations of the African Association of Development Finance Institutions (AADFI) on the management norms of this kind of institutions.

These resolutions were approved at a General Meeting held on July 11, 2018, at  Gapi-SI headquarters in Maputo, in which all the shareholders participated and was led by Dr. Abdul Carimo Issa, who was recently reappointed to the position of Chairman of the Board.

This meeting follows on the heels of a strengthening of Gapi’s institutional robustness which included the election of new officers of the governing body, a month ago, electing the economists Luis Sitoe and Antonio Souto as Chairman of the Board of Directors and Chief Executive Officer, respectively.

Gapi’s shareholders are, however, starting to implement a project to strengthen the company’s own funds, including issuing new shares to support a capital increase of more than US$2 Million (MZN 120 000 000) which has already been done. Through this project the shareholders intend on strengthening the institution’s capacity to introduce new financial instruments indispensable for the implementation of rural development programs and support to the national business sector.

 

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