Pr�sentation PowerPoint

							INNOVATIVE APPROACHES TO RURAL FINANCIAL
   SERVICES PROVISION WITH EMPHASIS ON
         SMALLHOLDER PRODUCERS



      THE EXPERIENCE OF
        MOZAMBIQUE
                         BACKGROUND
Population           :    17,5 million
GDP                  :    4321m US$
Growth rate         :     7.1%
GDP per Capita       :    US$ 240
Inflation            :    13.8%
Agriculture
Contribution to
GDP                 :     22%
National currency   :     Metical /24000 a USD
                Financial sector
   Reforms were introduced in early 90‘s by
    allowing new entries in the system;

   Banking Act was approved in 1991 and
    revised in 1999;

   State Banks were privatised from 1996
    because of accumulation of NPLs.
         Financial Sector Cont...
   From 3 Banks in late 1980‘s now we have:
    - 11 Commercial Banks
        - 1 is a Microfinance bank
    -    5 Co-operative Banks
    -    3 leasing companies
    -    3 other institutions
    -    35 Exchange houses
    -    3 Insurance companies
    -    1 Stock Exchange
        Geographical Distribution
There are 207 branches
 12% North (Nampula, Niassa and Cabo
  Delgado)
 22% in Center (Sofala, Manica, Tete and
  Zambezia)
 66%    in South (Maputo, Gaza and
  Inhambane)
   47% in Maputo
    Geographical Distribution cont……
   We have one branch for each 82,000
    habitants
   or 1 branch for each 3,782 Km2.

   As we can see the rural do not have
    access to financial services.
                 INNOVATIONS
   The Governor has issued a notice with new
    minimum capital for a commercial bank. The
    minimum is 70 billion meticis, equivalent to
    US$ 3.5 million.
   The capital could be reduced to 70% or 50%
    if a Bank is opened in some provinces
    already identified.
   BM has also registered Microfinance
    institutions. (13 associations, 6 NGO and 6
    individuals)
               INNOVATIONS Cont…
   These institutions are basically NGOs and are
    only allowed to lend.Taking deposits is not
    allowed.

   In the revision of the banking Act a new kind
    ok bank was created, the microbank.

   Microbanks will be second tier banks with
    different prudential ratios.