Financial inclusion: MEF plans to connect savings groups to the formal system

Mozambique’s Ministry of Economy and Finance (MEF) is planning to connect around 3,300 savings groups to the national financial system by September 2024. The measure was announced by the director general of the Fund to Support the Rehabilitation of the Economy (FARE), Augusto Isabel, during the 11th Forum of Savings and Revolving Credit Groups (GPCR), held in Maputo under the theme “Promoting the Sustainability of Savings and Revolving Credit Groups and their Connection to the Formal Financial System”.

This initiative is in line with the National Financial Inclusion Strategy, which seeks to facilitate access to financial services for all Mozambicans. Augusto Isabel emphasized that the aim is to reach 3300 Revolving Savings Credit groups, with an average of around 25 members in each group, as part of the Rural Enterprise Financing Project (REFP).

He stressed the importance of financial inclusion for all citizens, pointing out that in 2016 the country already had more than 12,000 rotating savings credit groups, which accumulated total savings of 11 million dollars. Despite considering these figures significant, FARE is committed to integrating these savings into the financial system to improve control over the resources circulating in these communities.

The measure aims not only to strengthen financial inclusion, but also to boost the country’s socio-economic development by providing access to financial services to more people. Linking savings groups to the formal financial system can open up opportunities for investment and economic growth in various communities, contributing to the expansion and stability of the national economy.

The MEF is working closely with other entities and organizations to achieve these objectives, and it is hoped that this integration of savings groups into the formal financial system will bring significant benefits to the population and economy of Mozambique.