Mozambique has experienced a decrease in ATMs and POS terminals for five consecutive years, dropping to 7.4 ATMs per 100,000 adults. Conversely, digital wallet agents from Electronic Money Institutions have increased significantly, reaching 1,686 per 100,000 adults in 2024. The government aims to tax commissions from agents and EMIs, as the number of bank accounts grows by 10%.
In Mozambique, the number of cash machines has decreased for the fifth consecutive year, now standing at 7.4 ATMs per 100,000 adults, according to the Bank of Mozambique’s latest financial inclusion report. The number of ATMs has declined from 11 per 100,000 adults in 2019 to a total of 1,413 by last year, reflecting a significant downward trend in physical banking infrastructure.
Similarly, the coverage of point-of-sale (POS) terminals has also faced a decline, from over 229 per 100,000 adults in 2019 to just 190 at the end of the previous year, totaling 35,470 terminals nationwide. This shift illustrates a broader concern regarding physical payment methods in the region.
In contrast, the number of digital wallet agents, categorized as Electronic Money Institutions (EMIs), has been on the rise, reaching an unprecedented 1,686 agents per 100,000 adults in 2024, a significant increase from 350 in 2019. Mozambique currently operates three EMIs, allowing citizens access to financial services via mobile phones, thereby enhancing financial inclusivity.
The growth of EMI agents continues, with a reported 12.2% increase in the first half of 2024, bringing the total to over 252,000 agents spread across all 154 districts. This increase exemplifies the shifting landscape towards mobile financial services in the nation.
The Mozambican government has expressed intentions to impose taxation on the commissions earned by agents and EMIs, which collectively manage nearly 20 million accounts. The government’s 2024 actions included drafting legislation to tax these commissions, aiming to widen the tax base and improve public revenue from the expanding digital economy.
The total number of bank accounts in Mozambique rose by 10% in 2024, reaching 6.2 million. However, the proliferation of EMIs has outpaced this growth, with EMIs recording 19,870,700 accounts, up by 18.5% over the same period. This represents a significant increase from the 10,833,801 e-money accounts recorded in 2020, illustrating a paradigm shift towards digital financial solutions over traditional banking methods.
In summary, Mozambique is witnessing a continuing decline in cash machine and POS terminal numbers, highlighting a shift towards mobile financial solutions. The growth of Electronic Money Institutions and their agents is notable, as is the government’s initiative to tax these emerging financial avenues. The statistics illustrate a significant transition in the nation’s financial landscape, emphasizing the increasing reliance on digital services for economic activities.
Original Source: clubofmozambique.com
