Just 4.3 pct of Mozambican population has access to financial services

26 September 2013

Just 860,000 people or 4.3 percent of the Mozambican population, currently estimated to total 23 million people, have access to formal financial services, according to the State Administration Ministry.

According to Mozambican news agency AIM, that figure was given at a meeting held in Inhassoro, in Inhambane province, at the presentation of the progress made by the campaign for savings deposits and the Rural Finance Strategy.

Neither retail banks and micro-finance institutions offer long term financial services for agricultural equipment such as tractors, which is a “limiting factor for the rural population, which is mostly agricultural.”

As well as this retail banks charge interest at rates of up to 30 percent as well as applying conditions (guarantees, historical credit ratings, amongst others), which, “excludes small-scale farmers from access to credit as rural finances are mostly linked to the agricultural sector.”

During the meeting’s closing session, the Minister for State Administration, Carmelita Namachulua, said that the provinces should work on campaigns to encourage savings particularly through informal savings groups, “in order to stimulate the rural economy and the process of local development itself.” (macauhub)