Mobile Money:

1
Addis Ababa, 30th June 2015

• Mobile Money
• Impact and Challengers

2
PRESENTATION OUTLINE

• Overview
• Legal Framework
• Country profile
• Challenges

2
3
Overview

• 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

3
4
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.

4
5
Country Profile General indicators
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
5
6
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.

6
7
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.

7
8
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.

8
9
Thank You
9