Outline. 1. The past 1.1. Overview 1.2. Legal Framework

Transcription

1 Outline 1. The past 1.1. Overview 1.2. Legal Framework 2. The Present 2.1. Financial Inclusion Policies 2.2. Financial Education Initiatives 2.3. Financial Inclusion Indicators 3. The Future 3.1. Main Challenges 1

2 1. The Past

3 1.1. OVERVIEW q In Mozambique the concern for inclusive growth has always guided government policies; q The Government policies have been implemented in order to promote the increase of employment, household income and the human development indices. 3

4 1.1. OVERVIEW National Independence General Peace Accords Presence of financial Institutions across the country Innovation and financial Inclusion / Ø Savings campaigns nationwide; Ø Establishment of a development bank with agencies across the country Ø Civil war. Ø Beginning of the structural adjustment program; Ø Financial sector reforms; Ø Institutional separation of Commercial and central bank functions; Ø Openness of financial sector to Private Investors Ø New categories of financial operators; Ø Microfinance framework reforms; Ø Rural Development Strategy; Ø Economy Bancarization Strategy. Ø Operation of Electronic Money Institutions; Ø Creation of the Mozambique Single Network; Ø Joined the Alliance for Financial Inclusion. 4

5 1.1. OVERVIEW q Now Mozambique experiences a remarkable increase in annual GDP and price stability: ü GDP (annual variation): 7% (March, 2015); 7.4% 7.2% 7.0% 6.8% 6.6% 6.4% 6.2% 6.0% 5.8% 7.1% 7.2% 7.1% 7.2% 6.9% 6.7% 6.4% GDP - Annual Var. (%) Average ü CPI Mozambique (annual variation): 1,4% (June, 2015). 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2.3% 17.4% 6.1% 2.0% 3.5% 1.9% 1.4% (june) CPI Mozambique Average CPI Maputo 5

6 1.2. LEGAL FRAMEWORK q The following regulations were approved to implement the goals established in the various Government strategies: ( ) Law nº28/91 Law nº15/99 amended by Law nº9/ Bank Law Decree nº. 57/2004, Regulation of Microfinance Institutions Notice nº. 10/GBM/20 07 Special Regime for Banks and Microfinanc es to open branch in rural areas Law nº. 2/2008, National Payment System Law Decree nº. 30/2014, Openning and closure of branches and Interbank Single Network Notice nº. 1/GBM/2015 and Notice nº. 2/GBM/2015 Rules and Criteria for Openning and Closure of Bank branches Interbank Single Network Notice nº. 3/GBM/201 5 and Notice nº. 6/GBM/201 5 Agent Banking Regulation And Trust Account for e-money issued 6

7 2. The Present

8 2.1. FINANCIAL INCLUSION POLICIES The 5-year Program of The Government of Mozambique - PQG ( ). The Financial Sector Development Strategy FSDS ( ) (1) (2) (3) (4) (5) Develop a market conduct function Strengthen the role of bank supervision Mantain the incentives to promote bancarization of the economy Increase and massify the use of alternative means of payment. Promote a greater scope, diversification and competitiveness to the provision of financial services. Goal - Promote the development of a sound, diverse, competitive and inclusive financial sector. Target: by end 2022, not less than 35% of the active adult population of Mozambique should have physical or electronic access to at least one financial service provided by a regulated financial institution 8

9 2.1. FINANCIAL INCLUSION POLICIES q The Financial Sector Development Strategy defines the following objectives: Promote financial literacy Promote competition Consumer protection framework Penetration of financial services Reduction of transaction costs Increase MSME access to finance Engage all stakeholders Financial Inclusion goals Develop a National Financial Inclusion Strategy 9

10 2.1. FINANCIAL INCLUSION POLICIES National Financial Inclusion Strategy Pillars Pillar 1 Pillar 2 Pillar 3 Access to and use of financial services Ensuring availability, proximity and effective use of a range of appropriate financial services for businesses and individuals in rural and urban areas Strengthening financial infrastructure Consumer protection and financial education Goal Goal Goal Strengthen security and efficiency of the national payment system, financial information infrastructure and the execution of guarantees. Ensure that financial consumers are informed, trained and protected. 10

11 2.2. FINANCIAL EDUCATION INITIATIVES Financial Education Initiatives Goals Financial Education Program of the Bank System Financial Education Strategy in Insurance Financial Education Program for the capital market Support financial inclusion by disseminating conditions of access to minimum banking services and raise awareness to the importance of savings Inform, train and guide the society on concepts and insurance products; Raise awareness about the importance of having insurance and the exposure of different types of risks Promote the capital market and increase the visibility of the Mozambique Stock Exchange Encourage the commitment of the companies to the stock market. 11

12 2.3. FINANCIAL INCLUSION INDICATORS Bank Branches Total: 274 Total:

13 2.3. FINANCIAL INCLUSION INDICATORS Microfinance E-Money Credit Unions Microbanks Branches E-Money Accounts Mobile Subscribers 2015 (June) 2015 (June) ,585 9,309 4,674 3,029 2, E-Money Agents ü 20% of mobile subscribers have an e-money account; ü 26% of active population of Mozambique have an e-money account 13

14 2.3. FINANCIAL INCLUSION INDICATORS Financial Inclusion Index Country Comparison Access Strands Financial Inclusion Index Mozambique 2014 The FII increased by 53% between 2005 and Mauritius 2014 South Africa 2014 Namibia 2011 Swaziland 2014 Botswana 2014 Lesotho 2011 Zimbabwe2014 Malawi 2014 Zambia 2015 Mozambique 2014 Tanzania 2013 DRC Banked Informal only Other formal (non-bank) Excluded Source: Finmarktrust, Finscope (2015)

15 3. The Future

16 3.1. MAIN CHALLENGES Improve the Access and Usage of Financial services Strengthen the financial infraestruture Ensure consumer protection and education Improve the collection of statistical data ü Expand and diversify the network of access points; ü Improve the legal and regulatory framework; ü Develop a range of products for the MSME, lowincome population and farmers. ü Improve the infrastruct ure of the National Payment System; ü Improve infrastruct ure to expand healthy credit; ü Improve the legal and regulatory framework and oversight for the protection of financial consumers; ü Increase the range and quality of information available; ü Increase the level of financial knowledge. ü Reduce the overcounting of data (e.g. Bank and e- money Account); ü Improve data collection by gender; ü Create a national biometric system. 16

17 3.1. MAIN CHALLENGES q Ensure interoperability between the bank and the nonbank system. Bank System Interoperability Non-Bank System (e-money) 17

18 THANK YOU VERY MUCH Maputo, 3 rd September,