In 2023, credit to the economy fell by 9.6 per cent, from 16.6 million to around 15 million meticals per 1,000 adults, according to the 2023 Financial Inclusion Report consulted this Tuesday (29) by Diário Económico. The analysis, carried out by the Bank of Mozambique, attributes this contraction to the country’s economic conditions and restrictive monetary policies.
According to the report, rising interest rates and lower demand for credit have significantly influenced the volume of finance available to both companies and families. ‘Demand for credit was impacted by a tighter economic climate and restrictive monetary policies, resulting in a decrease in credit granted,’ the document states.
In addition, the analysis notes a reduction in the number of points of access to financial services. The number of bank branches fell to 9.1 per 10,000 square kilometres, compared to 9.3 in 2022.
The number of bank agents also fell, from 28.0 to 12.5 per 10,000 km². Similarly, the number of ATM and POS terminals fell to 18.5 and 377.9 respectively, compared to 19.6 and 488.6 the previous year.
On the other hand, the Financial Inclusion Index (IIF) grew by 1.14 points, standing at 15.13 in 2023. This increase is attributed to the growth of non-bank agents and the greater adoption of electronic money services and bank accounts.
‘The financial inclusion index recorded a positive advance, driven above all by the increase in non-bank agents and the expansion of e-money services,’ the report emphasises.
The document also indicates moderate growth in the insurance market, with a positive variation of 0.2 per cent in nominal terms, bringing the insurance penetration rate to 2.03 per cent, compared to 1.85 per cent in 2022.
In the capital market, market capitalisation saw a significant increase, from 138.5 billion meticals in 2022 to 183.8 billion in 2023, representing an increase of 32.7%. In proportional terms, market capitalisation reached 25.8% of GDP, exceeding the target of 9.2% set by the National Financial Inclusion Strategy 2016-22.
For next year, the Bank of Mozambique anticipates new measures to facilitate access to credit and expand financial inclusion, with the introduction of basic bank accounts and a unique bank identification number, aimed at increasing accessibility to the financial system.
Text: Felisberto Ruco
