AMOMIF (Mozambican Association of Microfinance Operators) will take part in the negotiations on social consultation and setting the minimum wage, which began on Friday, April 5, in Maputo.
The organization, which will be represented by Enoque Changamo, a member of AMOMIF’s Board of Directors and president of Caixas Comunitárias de Moçambique (CCOM), believes that the format of the discussion on the minimum wage is flawed and harmful to microfinance institutions (MFIs). In fact, as long as microfinance and microinsurance remain part of the so-called “sector 8”, which is where banks and insurance companies participate, the establishment of the minimum wage for MFIs will be incorrectly influenced by the profits and large volumes of business that characterize the large commercial banks.
“In the 2023 negotiations, the minimum wage for banks and insurance companies was set at 16,061 meticais, while for MFIs it was set at 14,241 meticais, a difference of just 1,800 meticais. Of the 50 or so MFIs that are currently members of AMOMIF, almost none can sustain a payroll where the minimum amount is so high,” said the president of AMOMIF, António Souto.
In addition, another aspect that worries AMOMIF is the issue of the wage division, which does not respect the principles of fairness. The manager of the Microfinance Institutions pointed out that “In localities where there are microfinance operators, it happens that a servant at one of these institutions earns as much or more than a nurse’s assistant in the same locality. Thus, people who are neighbors but have very different technical qualifications are negatively discriminated against due to a misconception of what the financial sector is.”
The salary issue is one of the causes that has inhibited MFIs from becoming formal entities or following legal procedures when hiring employees, at the risk of being penalized by the competent authorities.
In order to overcome this negotiation model, the AMOMIF board is calling on its members to share their views and recommendations in support of the delegation which, led by the president of CCOM, will bring the voice and concerns of the sector to the discussion table. To this end, the AMOMIF secretariat will set up a group on the whatsapp platform to receive contributions from all interested parties.
