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In Mozambique, like many developing economies, financial inclusion has been a key focus area for government bodies, non-governmental organizations, and private sector entities. In a country where a significant portion of the population still remains unbanked or underbanked, digital finance and mobile money platforms present a remarkable solution to bridge this gap. Leveraging digital finance not only helps in enhancing financial inclusivity but also contributes to the broader socio-economic development of the country.
Against this backdrop, a new strategic partnership has been designed between GIZ Mozambique and M-Pesa, a leading mobile money transaction service. GOPA AFC supported GIZ Mozambique in the design of this partnership, with the objective of fostering a sustainable and profitable model to create an inclusive financial services ecosystem for smallholder farmers, rural micro, small, and medium enterprises (MSMEs), and the low-income population, particularly women and youth.
M-Pesa, with its extensive mobile money agent network, has been at the forefront of delivering financial services to underserved communities in Mozambique. As part of its commitment to further expand its offerings and footprint in Mozambique, M-Pesa has joined forces with GIZ, an organization with extensive expertise in financial inclusion, financial literacy, and mobile money, and an excellent understanding of the Mozambican rural context.
This partnership is geared towards designing innovative financial products, developing financial literacy initiatives, and leveraging M-Pesa’s agent and merchant network. A key focus is to extend the reach of financial services to the rural populace, thereby bridging the gap between the formal financial system and unbanked or underbanked communities.
The partnership aligns with the strategic objectives of Mozambique's Financial Inclusion Strategy for 2024 - 2030 (ENIF), particularly those aimed at promoting digital financial services and incentivizing digital saving products.
The potential for this partnership was discussed in various individual meetings and a workshop organized by the Mozambican Banking Association in November 2023. The workshop invited all major banks and mobile money players, where GIZ's technical assistance was offered to all participants. Following this, M-Pesa approached GIZ to form a partnership, demonstrating their commitment to extend their services to rural areas and improve service quality.
“M-Pesa’s current operations are mainly focused on urban areas in Mozambique. GIZ’s support would encourage them to expand operations to rural and remote areas and specifically target smallholder farmers and micro, small and medium enterprises in selected GIZ priority provinces. GIZ support will accelerate the process substantially and will encourage them to explore new target segments in rural areas. M-Pesa has requested technical assistance from the GIZ— supported by GOPA AFC— as GIZ has good experience in designing products and services for the low-income segments in rural areas and has extensive experience with smallholder farmers”, comments GOPA AFC expert Sachin Bansal.
AFC has been supporting GIZ for many years to enhance financial inclusion in Mozambique. The support provided by AFC includes working with GIZ partners in establishing agent networks, designing new financial products and delivery channels, designing financial literacy and gender initiatives and working with the regulators and banking association.
This joint effort is well-positioned to make meaningful progress in advancing financial inclusion in Mozambique. By harnessing the potential of digital finance, it strives to foster a more inclusive, sustainable, and prosperous future for the people of Mozambique.
For further information, please contact Vladislav Nimerenco (Vladislav.Nimerenco [at] afci.de).