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.

Mono Technologies Nigeria Limited, a leader in open banking infrastructure in Africa, has announced a partnership with Mastercard to transform digital payments across the continent. The collaboration aims to introduce secure and efficient account-to-account (A2A) payments using Mastercard’s Gateway technology.

This is the first A2A payment implementation via Mastercard Gateway in the Eastern Europe, Middle East and Africa (EEMEA) region, which highlights a significant milestone for the digital payments industry in the region.

According to the Empower Africa website, the combination of Mono’s open banking solutions and Mastercard’s payment technology offers businesses a simplified A2A payment option. This new solution opens up several possibilities for merchants, fintech companies, telecom providers, governments and financial institutions, improving the payment experience for individuals and businesses.

“The partnership is a crucial step towards promoting financial inclusion, innovation and growth in Africa’s digital economy,” Mastercard and Mono said in a joint statement.

For Mastercard, this collaboration strengthens its Alternative Payment Methods (APM) strategy in Nigeria and advances its vision of a multi-rail Mastercard Gateway.

“The integration of Mono’s open banking solution aligns perfectly with our commitment to expand and improve payment methods for our customers,” emphasized Folasade Femi-Lawal, Country Manager and Area Business Head at Mastercard, West Africa.
Mono aims to empower businesses with efficient direct payments and access to valuable customer financial data. With more than 50 financial connections established across Africa, Mono plays a key role in driving the Internet economy on the continent and enables companies to customize and innovate their services.

The South African rand strengthened ahead of inflation data from the United States and the minutes of the Federal Reserve meeting, which took place on April 10. The rand traded at 18.47 against the US dollar, around 0.9% stronger than the previous close. The dollar index last traded up 0.02% against a basket of currencies.

South Africa did not release any economic data on Tuesday. Gold and ore production and manufacturing figures for February will be released on Thursday. The rand, like most emerging market currencies, is guided by US economic data and monetary policy, in addition to local factors.

US consumer price inflation for March will provide more clues about the future path of Fed policy. On the stock market, the Top-40 index closed up 0.14%, while the broader All-hare index rose 0.2%. The benchmark South African government bond for 2030 was stronger, with the yield falling 9.5 basis points to 10.490%.