Catalytic Funds in Mozambique are driving hundreds of businesses towards formalization, according to recent reports. These subsidies are incentivizing companies to register and operate within the legal framework, significantly expanding the state’s tax base. The initiative, launched to stimulate economic activity, is proving successful in bringing informal businesses into the formal sector. This increased formalization strengthens the economy and provides greater revenue for public services. Authorities report a tangible growth in the number of registered businesses thanks to the fund. The program aims to foster an environment more conducive to investment and sustainable development within the country, while simultaneously increasing state revenue. This development signals a positive step towards a more robust and transparent Mozambican economy.