Financial Crime World

Mozambique Makes Considerable Progress in Financial Inclusion Efforts

Maputo, Mozambique - Despite Challenges Remaining

According to a recent report, considerable progress was made in 2020 in the actions planned to promote financial inclusion in Mozambique. Out of the total 54 actions laid down in the National Strategy for Financial Inclusion (NFIS) action plan, 14 (26%) were carried out, 35 (65%) are in progress, and 5 (9%) have not yet been started.

Achievements in Financial Inclusion

The report highlights the country’s achievements in financial inclusion, including:

  • An increase in bank accounts from 4.885 million in 2019 to 5.117 million in 2020, representing a growth of 5%.
  • 66% of adults have electronic money accounts opened with Electronic Money Institutions (EMIs), compared to 56% in 2019.

Challenges Persist

However, challenges persist, particularly in rural areas. To address these issues and ensure the effective implementation and achievement of NFIS objectives, actions with a high short-term impact (12 months) are essential.

Key Areas for Attention

The report identifies four key areas that require attention:

  • Implementation of National Financial Inclusion Committee’s (NFIC) recommendations
  • Continuous modernization of the legal and regulatory framework
  • Strengthening of the insurance and capital market
  • Design of financial services and products tailored to the needs of the population

Progress Made in 2020

In 2020, several actions were implemented to promote financial inclusion:

  • The Bank of Mozambique launched the first edition of its Regulatory Sandbox for fintechs, approving three fintechs.
  • A call for applications was launched for the second edition, accepting seven fintechs.
  • The government made progress in digitalizing state payments, paying 18,466 beneficiaries of the Direct Post-Emergency Social Support Program using mobile ATMs and near-field communication cards.
  • Electronic accounts were opened for 105 beneficiaries residing in Beira city, and 9,110 electronic money accounts were opened for beneficiaries in Montepuez district.

Conclusion

The report concludes that while progress has been made, more needs to be done to achieve the NFIS objectives. Defining actions with a high short-term impact will be crucial to ensuring the effective implementation of the strategy and achieving financial inclusion goals.