Mozambique’s ATM and POS coverage has declined for five consecutive years, currently standing at 7.4 ATMs and 190 POS terminals per 100,000 adults. However, digital wallet agents and Electronic Money Institutions have seen substantial growth. The government plans to tax EMIs, which have approximately 20 million accounts. Bank accounts increased by 10% in 2024, amid a much larger growth in EMI accounts, which rose by 18.5%.
Mozambique has experienced a decline in ATM coverage for the fifth consecutive year, with the number dropping to 7.4 ATMs per 100,000 adults in 2024, according to central bank data. This decline follows a peak of 11 ATMs per 100,000 adults recorded in 2019, with the total number of ATMs now at 1,413.
Additionally, Point of Sale (POS) payment terminals have also seen a decrease in coverage, falling from over 229 per 100,000 adults in 2019 to 190 by the end of last year, totaling 35,470 terminals nationwide. Conversely, the presence of digital wallet agents has surged, reaching 1,686 agents per 100,000 adults in 2024, an increase from 350 in 2019.
Currently, three Electronic Money Institutions (EMIs) operate in Mozambique, offering vital financial services through mobile phones. This growth in digital wallet agents provides more accessible financial services for citizens. By the first half of 2024 alone, EMI agents rose by 12.2% to over 252,000, successfully covering all 154 districts.
The Mozambican government plans to levy taxes on the commissions earned by agents and EMIs, which serve almost 20 million accounts, as stated in a recent government document. Legislation is underway to broaden the tax base and enhance revenue collection from this burgeoning segment of the digital economy.
The number of registered mobile wallet agents has been impressive, with 787 agents assigned tax identification numbers. Furthermore, the growth in bank accounts in Mozambique reached 6.2 million in 2024, marking a 10% increase. However, accounts held with EMIs have increased significantly more, totaling 19,870,700, which is an 18.5% rise within the same time frame.
In summary, Mozambique is facing a significant decline in traditional financial services such as ATMs and POS terminals, with an increasing reliance on digital wallet agents and Electronic Money Institutions. Despite the decrease in traditional banking infrastructure, digital financial services are proliferating, suggesting a shift towards mobile banking. Concurrently, the government aims to enhance revenue from this sector by imposing taxes on EMIs and their agents, highlighting the evolving landscape of financial services in the region.
Original Source: clubofmozambique.com
