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“Zambezia and Inhambane Ranked as Least Saving Provinces” – Bank of Mozambique

“Zambezia and Inhambane Ranked as Least Saving Provinces” – Bank of Mozambique

The level of savings measured by total deposits made in financial institutions at the national level stood at around 53% of the Gross Domestic Product (GDP) in the year 2021, a drop by 1.1 pp compared to the year 2020, reveals the Financial Inclusion Report 2021 produced by the Bank of Mozambique.

According to the document, financial savings analyzed in demographic terms did not escape fashion, standing at 30.2 million meticais per thousand adult people in 2021, compared to 32.4 million meticais observed in 2020, thus representing a reduction of 2.9%.

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“With the exception of Maputo province, Sofala province shows with the high levels, on the order of 30.8% of total deposits as a percentage of GDP, followed by Manica and Nampula provinces, both with 17.1% of total deposits as a percentage of GDP. The lowest levels are evident in the provinces of Zambezia and Inhambane, with financial savings levels of 7.8% and 8.7% respectively,” indicates the Financial Inclusion Report 2021 quoted by O País.

In turn, financial inclusion, that is, the number of people with access to financial services in the country suffered a reduction. Calculations by the Bank of Mozambique indicate that the Overall Financial Inclusion Index stood at 12.76 points in 2021, compared to 13.93 points in 2020, a reduction of 1.2 points.

“This circumstance results, fundamentally, from the reduction of access points – bank branches, microbanks and credit cooperatives, banking agents, ATM and POS -, with special focus on the city of Maputo, as well as the retraction of economic activity over the period under analysis (COVID-19 effect),” the central bank document states.

According to the financial system regulator, financial inclusion is essential for sustainable economic development, since it stimulates financial savings, financing to the economy and, consequently, the expansion of economic activity, income generation and poverty reduction.

It is also through financial inclusion that a country registers economic development, reduces social inequalities, and improves the well-being of the population, according to the Bank of Mozambique.

The document also states that by 2021, there was a downward trend in bank financing in the country, measured in demographic terms. In effect, for every thousand adult people, about 14.3 million meticais were granted, against 14.7 million meticais in 2020.

Regarding the number of branches, agents and other representations of financial institutions, there was a reduction of 2.8% of bank branches, 11.5% of micro-bank branches, 50% of investment companies and 42, 9% of credit cooperatives, while the electronic money agents registered a considerable increase of 36.2%, according to data collected by the central bank.

The total number of bank accounts rose from 5,116,741 in 2020 to 5,293,240 in 2021, a rise of 3.4%. In terms of gender segregation, a downward trend in banking is observed in both genders.

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“The total number of adult women holding bank accounts went from 196 per 1,000 adults in 2020 to 194 in 2021, that is, a reduction of two accounts for every 1,000 adults. The male population now has 426 accounts per 1000 adults in 2021, compared to 427 in 2020, which is a reduction of one account per 1000 adults compared to 2020,” says the report.

According to the document, the capital of the country, as always, leads the level of banking with 2153 accounts, followed by the provinces of Maputo, Sofala and Gaza, with 413 accounts, 352 accounts and 324 bank accounts, respectively, per 1000 adults. This is in 2021.

In 2020, in the capital Maputo, there were 2079 accounts, followed by 417 accounts in Maputo province, 352 accounts in Sofala province and 320 accounts in Gaza province, per thousand adults, pointing to an upward trend of banking in Maputo City and Gaza.

“Zambezia, Nampula and Niassa, with 115, 163 and 183 accounts per thousand adults, respectively, were provinces with low levels of banking in 2021, with Niassa also seeing a reduction in its level of banking from 192 accounts per thousand adults in 2020, to 183 in 2021, when the other two provinces had an increase,” reads the Financial Inclusion Report 2021.

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