Mozambique has high level of financial exclusion

12 September 2012

Mozambique us the country with the highest rate of financial exclusion of a group of 11 African nations, seven of which are members of the Southern African Development Community (SADC), according to indicators from the Bank of Mozambique.

Cited by daily newspaper Notícias, the indicators showed that 78 out of every 100 Mozambican citizens have no access to any type of financial services, and the central bank cited infrastructure limitations, dispersion of the population and high cost of services and products as some of the obstacles to greater financial inclusion.

In order to promote the creation and consolidation of a universal financial system, particularly in rural areas, the Mozambican government approved a rural finance strategy in 2011, and the central bank approved incentive measures for financial institutions that intended to expand their activities to rural areas, as well as to improve criteria for supervision.

Despite this, according to Notícias, the government recognises that problems continue with access to financial products and services with favourable conditions, considering for example, that bank coverage currently only reaches 58 of a total 128 districts in the country.

As of Wednesday and for three days the city of Maputo will receive 170 delegates from at least 30 African countries for a seminar on rural finance and rural cooperatives in sub-Saharan Africa.

Amongst the topics to be discussed are innovation in rural finance, rural finance within financial systems and rural cooperatives. The debates are expected to build foundations for the challenges of increasing production and productivity. (macauhub)