The Bank of Mozambique (BdM) recently announced that the number of bank accounts in the country grew by 5% until May 2024, reaching almost six million. In contrast, the growth in Electronic Money Institution (EMI) accounts was significantly higher, with a three-fold increase, as reported by the Lusa newsagency.
According to the BoM’s most recent statistical report, the total number of bank accounts rose from 5,687,975 at the end of 2023 to 5,977,930 in May this year. In the same period, the number of EMI accounts increased by around 7 per cent to 17,919,678.
At the same time, the number of bank cards fell by approximately 10 per cent to 3,146,560. Physical bank branches, on the other hand, increased from 653 to 654, extending their coverage to 131 of the country’s 154 districts.
ATM coverage in Mozambique fell from 12.9 per 100,000 inhabitants to 7.8, while the number of POS payment terminals fell from 190.8 to 184.8 per 100,000 inhabitants.
The country currently has three Electronic Money Institutions, associated with the main mobile telecommunications operators, which provide financial services via mobile phones, including transfers and payments.
‘ATM coverage in Mozambique fell from 12.9 per 100,000 inhabitants to 7.8, while the number of POS payment terminals fell from 190.8 to 184.8 per 100,000 inhabitants’
The number of digital wallet agents increased by 8 per cent in three months, totalling more than 242,000 across the country. In 2023, mobile wallets set a new record with more than 400 million transactions, according to the BdM.
The International Monetary Fund (IMF) highlighted this week that the digitalisation of social payments could improve the effectiveness of social protection in Mozambique.
The IMF recommended that with growing financial inclusion, with 93.2 per cent of the adult population having EMI accounts by the end of 2023, exploring payments via electronic money could help overcome the financial challenges faced by social protection.
Despite advances in financial inclusion, the IMF emphasises that social benefits have remained stagnant since 2018. The Fund’s report emphasises the need for annual adjustments to preserve the purchasing power of beneficiaries and strengthen the effectiveness of the social safety net.
