António Souto, economist and CEO of Sociedade de Investimentos Gapi, argued this Thursday (22) that digitalisation and microfinance are essential tools for promoting financial inclusion in Mozambique.
The statements were made at the seminar on digitalisation and microfinance in financial inclusion, held in Maputo, promoted by the Mozambique Chamber of Commerce (CCM), in partnership with New Faces New Voices (NFNV), the Mozambican Association of Microfinance Operators (AMOMIF) and Gapi, which brought together experts and players from the financial sector to discuss development strategies and solutions.
During his speech, António Souto stressed that ‘digitalisation is not just a global trend; in Mozambique, it is a priority if we want to include rural and low-income populations in the financial system’.
According to the economist, through microfinance there is a unique opportunity to bring financial services to marginalised segments that would otherwise have no access to credit or insurance.
António Souto warned of the risks of inequality that can arise if the financial sector is not properly orientated towards inclusion. ‘Excessive concentration in commercial banking has exacerbated social inequalities,’ he said.
For the economist, microfinance offers an alternative and viable solution to ensure that financial services reach the most vulnerable populations, emphasising that ‘a large financial sector does not mean that it is inclusive’.
The seminar also addressed the need to modernise microfinance through strategic partnerships with fintechs, a move that António Souto considers fundamental to improving the effectiveness of the financial system.
‘Co-operation between microfinance and fintechs is the future,’ he argued, adding that ’with digital technologies, we can expand the reach of financial services, even to the most remote areas of the country.’
‘Digitalisation is not just a global trend; in Mozambique, it is a priority if we want to include rural and low-income populations in the financial system’
Reflecting on the digital transformation underway in Mozambique, the economist stressed that the way forward must involve concrete projects that help not only with financial inclusion, but also with formalising micro-businesses.
‘This seminar marks the beginning of a deeper reflection on how microfinance can contribute to financial inclusion, especially with regard to women’s empowerment,’ he emphasised.
The organising institutions, he said, will form a consortium with the aim of ‘carrying out complementary interventions focused on empowering women entrepreneurs, providing them with better access to financial services, supported by digital tools’.
‘This consortium will be a key part of our next step: implementing projects that promote financial inclusion, with special attention to women entrepreneurs,’ he emphasised. António Souto also reaffirmed that ‘we are talking about creating real opportunities for women to grow their businesses and formalise their activities’, highlighting the commitment of the entities involved to work together for the sustainable development of Mozambique.
During the workshop, the importance of listening to the various institutions interested in the financial inclusion agenda was also emphasised. The consortium will hold discussions with experts in the sector to ensure better preparation for implementing the programme.
‘We want to build a future in which fintechs, microfinance and the government are aligned in their mission to reduce barriers to financial access,’ said António Souto. ‘This debate is essential to ensure that everyone is prepared and committed to the success of this mission.’
Managing Public Debt
The economist also took the opportunity to warn about the responsibility of managing public debt more prudently, emphasising that Mozambique faces significant challenges in this area. ‘Public debt has been growing at a worrying rate, which is limiting resources for essential sectors such as health, education and agriculture,’ he said. ‘We need more efficient and inclusive debt management that promotes sustainable development,’ he added.
The seminar, which was attended by various personalities from the financial sector and civil society, was considered a milestone in the discussions on the need to integrate digital technologies into the microfinance sector in order to promote more comprehensive financial inclusion and reduce poverty in Mozambique.
As Souto concluded, ‘financial inclusion is not just a question of economic development, it’s a question of social justice. We need to ensure that no one is left behind.’
Felisberto Ruco
