It is still a luxury to have a bank in Mozambique: only six people per square kilometre of national territory have one, according to the Bank of Mozambique’s financial inclusion indicators for the third quarter of the current year.
This number has not changed since the beginning of the year. The 2017 Census of the National Statistics Institute (INE) indicates that average population density is 36 people per square kilometre, of whom only six have a bank account.
So, in areas with fewer people per square kilometre, such as Niassa province, where there are an average of 14 people per square kilometre, the situation is critical.
In the city of Maputo, the scenario changes, with around 3,670 people per square kilometre.
From 2016 to 2019, in its approach to financial inclusion, the government, through its “One District, One Bank” programme, mitigated the problem, but is still a long way from solving it completely, and progress should be faster, with more infrastructure to attract investment.
Looking at it separately – by people per square kilometre – the situation may seem easier to resolve. But figures from the INE indicate that, in 2017, globally, only 9.3% of the population had access to a bank account across the country.
However, according to the FinScop report, around 60% of Mozambicans have access to financial services, in global terms, which indicates that the proportion of the population with a bank account increased from 20% to 21% between 2014 and 2019.
The 2019 FinScop report is the third, following those of 2009 and 2014. In the latter, 5,073 households were covered, with respondents 16 years of age or older.
In terms of access to bank cards, the situation gets worse. The Bank of Mozambique’s financial inclusion figures indicate that, on average, around four people per square kilometre have a bank account. That number dropped slightly in the last months of this year.
To transfer, withdraw and in some cases deposit money, people need ATMs. Despite their importance, there are only 21 ATMs in every 10,000 square kilometres in Mozambique.
As for point of service (POS) terminals, the situation improves, with at least 452 units per square kilometre. As for bank branches, only 125 of Mozambique’s 154 districts have them.
Having access to banking services, including a bank account, is essential for several reasons, foremost having money stored in a safe place and guarded from theft, fire, flood, etc..
Other advantages are the possibility of gaining access to financial products and services such as credits, loans and financing. Bank accounts also allow people to pay the bills for water, electricity, TV and to recharge mobile phones, as well as paying for other available products and services.
And worldwide, how are the statistics going?
According to data from the World Bank, it is estimated that, in 2017, 1.7 billion adults around the world did not have at least one bank account. So financial inclusion, globally, is still out of reach.
