3 Financial Inclusion in Mozambique, experience and main ... · protection and financial education Goal Goal Goal Ensuring availability, proximity and effective use of a range of

Outline

THE 2015 AFI GLOBAL POLICY FORUM INSPIRING INNOVATION TO ADVANCE INCLUSION

1. The past1.1. Overview1.2. Legal Framework

2. The Present2.1. Financial Inclusion Policies2.2. Financial Education Initiatives2.3. Financial Inclusion Indicators

3. The Future3.1. Main Challenges

1

1. The Past

1.1. OVERVIEW


q In Mozambique the concern for inclusive growth has always guided government policies;

q The Government policies have been implemented in order to promote the increase of employment, household income and the human development indices.

3

1.1. OVERVIEW


4

1975 1992 2004/2007 2011Ø Savings campaigns

nationwide;

Ø Establishment of a development bank with agencies across the country

Ø Civil war.

Ø Beginning of thestructuraladjustmentprogram;

Ø Financial sector reforms;

Ø Institutional separation of Commercial and central bank functions;

Ø Openness of financial sector to Private Investors

Ø New categories of financial operators;

Ø Microfinance framework reforms;

Ø Rural Development Strategy;

Ø Economy Bancarization Strategy.

Ø Operation of Electronic Money Institutions;

Ø Creation of the Mozambique Single Network;

Ø Joined the Alliance for Financial Inclusion.

National Independence

General Peace Accords

Presence of financial Institutions across the

country

Innovation and financial

Inclusion

1.1. OVERVIEW


q Now Mozambiqueexperiences a remarkableincrease in annual GDP andprice stability:

ü GDP (annual variation):7% (March, 2015);

ü CPI Mozambique (annualvariation): 1,4% (June,2015).

5

2.3%

17.4%

6.1%

2.0% 3.5%1.9% 1.4%

0%2%4%6%8%

10%12%14%16%18%20%

2009 2010 2011 2012 2013 2014 2015 (june)

CPI Mozambique CPI MaputoAverage

6.9%

6.4%

6.7%

7.1%7.2% 7.1% 7.2%

5.8%

6.0%

6.2%

6.4%

6.6%

6.8%

7.0%

7.2%

7.4%

2008 2009 2010 2011 2012 2013 2014

GDP - Annual Var. (%) Average

1.2. LEGAL FRAMEWORK


q The following regulations were approved to implement thegoals established in the various Government strategies:

(1991 – 2015)

6

Decree nº. 57/2004,Regulation of Microfinance Institutions

Notice nº. 10/GBM/2007 Special Regime for Banks and Microfinances to open branch in rural areas

Law nº. 2/2008, National Payment System Law

Decree nº. 30/2014, Openning and closure of branches and Interbank Single Network

Notice nº. 1/GBM/2015 and Notice nº. 2/GBM/2015 Rules and Criteria for Openning and Closure of Bank branchesInterbank Single Network

Law nº15/99 amended by Law nº9/2004 - Bank Law

Notice nº. 3/GBM/2015 andNotice nº. 6/GBM/2015 Agent Banking RegulationAndTrust Account for e-money issued

Law nº28/91

2. The Present

2.1. FINANCIAL INCLUSION POLICIES

THE 2015 AFI GLOBAL POLICY FORUM INSPIRING INNOVATION TO ADVANCE INCLUSION 8

(1)• Develop a market conduct function

(2)• Strengthen the role of bank

supervision

(3)• Mantain the incentives to promote

bancarization of the economy

(4)• Increase and massify the use of

alternative means of payment.

(5)

• Promote a greater scope, diversification and competitiveness to the provision of financial services.

The 5-year Program of TheGovernment of Mozambique - PQG(2015-2019).

The Financial Sector Development Strategy – FSDS

(2013-2022)

Goal - Promote the development of a sound, diverse, competitive and inclusive financial sector.

Target: by end 2022, not less than 35% of the active adult population of Mozambique should have physical or electronic access to at least one financial service provided by a regulated financial institution



q The Financial Sector Development Strategy defines thefollowing objectives:

9

Financial Inclusion

goals

Engage all stakeholders

Promote competition

Promote financial literacy

Consumer protection framework

Penetration of financial services

Reduction of transaction costs

Increase MSME access to finance

Develop a National Financial Inclusion

Strategy


THE 2015 AFI GLOBAL POLICY FORUM INSPIRING INNOVATION TO ADVANCE INCLUSION10

PillarsPillar 1 Pillar 2 Pillar 3

Access to and use of financial services

Strengthening financial

infrastructure

Consumer protection and

financial education

Goal Goal GoalEnsuring availability,

proximity and effective use of a

range of appropriate financial services for

businesses and individuals in rural and

urban areas

Strengthen security and efficiency of the

national payment system, financial

information infrastructure and the

execution of guarantees.

Ensure that financial

consumers are informed, trained

and protected.

National Financial Inclusion Strategy

2.2. FINANCIAL EDUCATION INITIATIVES


• Support financial inclusion by disseminating conditions of access to minimum banking services and raise awareness to the importance of savings

Financial Education Program of the Bank System

• Inform, train and guide the society on concepts and insurance products;

• Raise awareness about the importance of having insurance and the exposure of different types of risks

Financial Education Strategy in Insurance

• Promote the capital market and increase the visibility of the Mozambique Stock Exchange

• Encourage the commitment of the companies to the stock market.

Financial Education

Program for the capital

marketFina

ncia

l Edu

cati

on In

itia

tive

s G

oals

2.3. FINANCIAL INCLUSION INDICATORS


Bank Branches 2007-2015

12

Total: 274

Total: 583



Microfinance

0

3000000

6000000

9000000

12000000

15000000

18000000

21000000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

(Ju

ne)

E-Money Accounts Mobile Subscribers

2,840

3,029

4,674

9,309

11,585

0 20000

2011

2012

2013

2014

2015 (June)

E-Money Agents

ü 20% of mobile subscribers have an e-money account;ü 26% of active population of Mozambique have an e-money account

E-Money

11

72

19

314

40

050

100150200250300350

Credit Unions

Microbanks Branches

2007 2015



Financial Inclusion Index

9.3 9.4

10.310.6 10.8

11.2

13.2 13.3

14.0 14.2

9

10

11

12

13

14

15

16

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Financial Inclusion Index Mozambique

The FII increased by 53% between 2005 and 2014.

85

75

62

54

50

38

30

27

25

20

14

12

3

5

8

10

18

20

39

7

13

4

43

24

2

6

3

9

8

23

8

15

21

16

16

12

10

14

27

27

24

19

23

51

41

60

27

52

Mauritius 2014

South Africa 2014

Namibia 2011

Swaziland 2014

Botswana 2014

Lesotho 2011

Zimbabwe2014

Malawi 2014

Zambia 2015

Mozambique 2014

Tanzania 2013

DRC 2014

Banked Other formal (non-bank)Informal only Excluded

Source: Finmarktrust, Finscope (2015)

Country Comparison Access Strands

3. The Future


3.1. MAIN CHALLENGES

Improve the Access and Usage of Financial services

Strengthen the financial infraestruture

Ensure consumer protection and education

Improve the collection of statistical data

ü Expand and diversify the network of access points;

ü Improve the legal and regulatory framework;

ü Develop a range of products for the MSME, low-income population and farmers.

ü Improve the infrastructure of the National Payment System;

ü Improve infrastructure to expand healthy credit;

ü Improve the legal and regulatory framework and oversight for the protection of financial consumers;

ü Increase the range and quality of information available;

ü Increase the level of financial knowledge.

ü Reduce the overcounting of data (e.g. Bank and e-money Account);

ü Improve data collection by gender;

ü Create a national biometric system.


q Ensure interoperability between the bank and the non-bank system.

3.1. MAIN CHALLENGES

Bank SystemNon-Bank System

(e-money)

Interoperability

www.afi-global.org

THANK YOU VERY MUCH

Maputo, 3rd September, 2015

Documents

3 Financial Inclusion in Mozambique, experience and main ... · protection and financial education Goal Goal Goal Ensuring availability, proximity and effective use of a range of