The number of ATMs in Mozambique has fallen for the fifth year in a row, now at 7.4 per 100,000 adults, while the number of EMIs and their agents is significantly increasing, with 19.87 million e-money accounts. The government has proposed a tax on EMIs to broaden the tax base. This reflects a shift towards digital financial services, though traditional banking services are declining.
In Mozambique, the number of ATMs has decreased for the fifth consecutive year, with current coverage at 7.4 machines per 100,000 adults, as per data from the Bank of Mozambique. This decline is notable as the number of ATMs per 100,000 adults was 11 in 2019, but has now fallen to a total of 1,413 machines by 2024.
Furthermore, the availability of Point of Sale (POS) payment terminals has also declined, dropping from over 229 per 100,000 adults in 2019 to 190 by the end of last year, summing up to 35,470 terminals nationwide. However, the landscape of financial services has seen a contrasting trend with the rise of digital wallet agents.
The number of agents for Electronic Money Institutions (EMIs) has surged significantly, reaching 1,686 per 100,000 adults in 2024, a marked increase from 350 in 2019. Currently, there are three EMIs in Mozambique, each affiliated with mobile telecommunications operators, facilitating financial transactions through mobile technology.
In the first half of 2024, the number of EMI agents increased by 12.2%, exceeding 252,000, thereby enhancing financial service accessibility across all 154 districts. The government has proposed legislation to tax commissions collected by these agents and EMIs while highlighting that nearly 20 million accounts are held under their purview.
Progress from last year includes the government’s initiative to compile data on agents and superagents to expand the tax base, thus potentially increasing revenue from the digital economy. Additionally, 787 new mobile wallet agents have been registered and assigned tax identification numbers.
The overall number of bank accounts in Mozambique increased by 10% in 2024, reaching 6.2 million, yet EMIs have surpassed this figure significantly with 19,870,700 accounts, marking an 18.5% increase. This growth is substantial compared to four years prior when the number of e-money accounts stood at 10,833,801.
The decline in ATM and POS terminal accessibility in Mozambique highlights a troubling trend in traditional banking services. However, the surge in digital wallet usage and EMI agents indicates a shift towards mobile technology for financial transactions. As the government seeks to regulate and tax this growth, the landscape of financial services in Mozambique is rapidly evolving, with a notable disparity between traditional bank accounts and e-money accounts.
Original Source: clubofmozambique.com
