Mozambique has witnessed a continued decline in ATM coverage, with only 7.4 machines per 100,000 adults in 2024, while the number of digital wallet agents and EMIs has seen substantial growth. The government aims to tax commissions from EMIs to boost revenue. Moreover, bank account numbers have grown, but the increase in EMI accounts surpasses traditional bank accounts, indicating a shift towards digital financial solutions.
In 2024, Mozambique experienced a decline in ATM coverage for the fifth consecutive year, with just 7.4 machines per 100,000 adults, as reported by the Bank of Mozambique. This decline has continued from 11 ATMs per 100,000 adults in 2019 to a total of 1,413 ATMs in 2023.
Similarly, the availability of POS payment terminals has decreased, dropping from over 229 per 100,000 adults in 2019 to 190 by the end of the last year, totaling 35,470 terminals nationwide. In contrast, the number of agents from Electronic Money Institutions (EMIs) has surged, reaching 1,686 per 100,000 adults in 2024, a significant increase from 350 in 2019.
Mozambique is now served by three EMIs owned by the leading mobile telecom operators, facilitating financial transactions through mobile phones, thereby broadening access to financial services. The EMI agents have increased by 12.2% in the first half of 2024, surpassing 252,000 across all 154 districts in the country.
Amidst these developments, the government of Mozambique has initiated steps to tax commissions from EMI agents and other EMIs. With nearly 20 million accounts reported, this move is part of the government’s strategy to enhance revenue collection from the burgeoning digital economy, although details of the tax bill submitted to Parliament have not been disclosed.
In 2024, the number of bank accounts in Mozambique increased by 10% to 6.2 million, yet the growth of EMIs was more notable, with their accounts rising by 18.5% to nearly 19.9 million. This marked a significant increase from 10.8 million e-money accounts recorded four years earlier in 2020.
The reported data reflects the contrasting trends in traditional cash withdrawal services and the expansion of digital financial services within Mozambique, highlighting a significant shift towards digital finance in recent years.
The financial landscape in Mozambique is experiencing notable transformations, characterized by a consistent decline in ATM and POS payment terminal availability, juxtaposed with a remarkable increase in digital wallet agent numbers and EMI accounts. The government’s intentions to tax these digital platforms underscore a strategic approach toward enhancing revenue collection from the growing digital economy. Overall, the data indicates a pivotal shift towards digital financial services, which may redefine accessibility and economic participation in the nation.
Original Source: clubofmozambique.com
