MICROCAPITAL BRIEF: Mozambique Launches Rural Finance Strategy

Mozambican Ministry of State Administration recently launched its Rural Finance Strategy, a five-year program that aims to provide financial access in rural areas of Mozambique. Currently, commercial banks exist in 60 of the country’s 128 districts. Recent surveys indicate that between 2.7 percent and 5 percent of family farmers have access to credit.  It is intended that the strategy will allow for more than 80 percent of the country’s districts to gain access to rural finance. The Ministry claims that the strategy will help “increase agricultural production and productivity and other economic activities, would improve the marketing of goods, and would increase household income.” The details of the strategy are currently not available.

The US-based microfinance information exchange lists nine microfinance institutions in Mozambique serving 36,868 borrowers with an outstanding loan portfolio of USD 39.6 million. In addition, these institutions hold USD 38.7 million in deposits for 137,714 costumers.

By Ariana Malushi, Research Associate

Sources and Additional Resources

Club of Mozambique: “Rural finance strategy launched”
http://www.clubofmozambique.com/solutions1/sectionnews.php?secao=abusiness&id=23488&tipo=one

MicroCapital.org Story, November 1, 2011,“MICROCAPITAL BRIEF: Standard Bank: Majority of Africans Lack Access to Microfinance, Other Financial Services”
https://www.microcapital.org/microcapital-brief-standard-bank-majority-of-africans-lack-access-to-microfinance-other-financial-services/

MicroCapital.org Story, August 14, 2011, “MICROCAPITAL BRIEF: MFTransparency, Mozambican Association of Microfinance Operators (AMOMIF) Launch Transparent Pricing Initiative in Mozambique”
https://www.microcapital.org/microcapital-brief-mftransparency-mozambican-association-of-microfinance-operators-amomif-launch-transparent-pricing-initiative-in-mozambique/

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