Mobile Money:

Impact and Challengers

Addis Ababa, 30th June 2015

PRESENTATION OUTLINE PRESENTATION OUTLINE

Overview

Legal Framework

Country profile

Challenges

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Overview

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Mozambique is part of the Southern Africa region with approximately 800.000 km2; population is around 24,4 millions with an adult population of 14,4 millions, for 2014.

Around three quarters of the adult population do not have formal bank account.

About 80% of the adult population have access to mobile phone

Legal framework

2007 – The Bank of Mozambique set up its bankarization strategy, establishing as one of objectives – the use of new technologies such as mobile payments, among others to offer financial services based on the experiences of other countries.

2009 Emend of the Financial Institutions act, to allow mobile financial services providers to operate in the markets, not as an MNO but as a stand alone company, either in a bank led model or non-bank led model.

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Country Profile General indicators

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Nº

Indicador Dec 2007 Dec 2011 May 2015

1. Bank branches 274 522 576

2. Microbanks agencies and credit unions

10 18 40

3. Mobile Payment Agents 0 7,151 9,615

4. Number of ATMs 431 1,136 1,421

5. Number of POS 3.645 12,481 15,700

6. Number of bank accounts 1.237.548 3,3347,450 3,443,617

7. Mobile money users - 2,961,432 3,572,005

8. Mobile phone subscribers 3.394.953,00 7.855.345 12,064,652

Results

Households are moving from “saving on the mattress” to save on mobile phone and in some circumstances the mobile money a are used as a mean of payment;

The is an increase on the financial resources available to invest, since the money received in exchange of e-money has to be held on the trust account in a commercial bank;

There is an increase on the volume of ETF through mobile phones which may suggest that household are moving from buses and relatives to mobile phones to send money;

Step-forward to have a formal bank account which might help to get a loan or save without a limit.

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Challenges of Regulator

Create an enabling environment; Set up a regulatory framework to promote consumer

protection and innovations on mobile money; Promote financial education campaign; Set up a strategy to ensure interoperability among e-

money issuer and to ensure a non exclusivity of mobile payments agents;

Set up rules which protects the funds held in trust account;

Implement a cooperative oversight with other regulators such as communication authorities, on the process of licencing and oversight of e-money issuer.

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Challenges

Implement the MoU signed between the Bank of Mozambique and the telecommunications authority in other to:

Achieve interoperability among e-money issuer; Involve the communications authority on the

process of licencing and oversight of e-money issuer.

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Thank You

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