Declining ATM Coverage in Mozambique Amidst Rising Digital Wallet Agents
Mozambique’s ATM coverage has decreased for five years, reaching 7.4 ATMs per 100,000 adults. Conversely, the number of digital wallet agents and EMIs significantly expanded, with over 1,686 agents per 100,000 adults in 2024. The government plans to tax commissions of agents and EMIs as the number of bank accounts grew by 10%, reaching 6.2 million, while EMI accounts surged to nearly 20 million.
In Mozambique, ATM coverage has fallen for the fifth consecutive year, with the current statistic standing at 7.4 ATMs per 100,000 adults, as indicated by the Bank of Mozambique’s recent financial inclusion report. The country had 11 ATMs per 100,000 adults in 2019, with the number declining to a total of 1,413 by last year.
Similarly, the number of Point of Sale (POS) payment terminals showed a declining trend, dropping from over 229 per 100,000 adults in 2019 to 190 by the end of last year, totaling 35,470 across the nation. In contrast, the proliferation of digital wallet agents has significantly increased, reaching 1,686 per 100,000 adults in 2024, up from 350 in 2019.
Currently, Mozambique has three Electronic Money Institutions (EMIs) that provide financial services through mobile phones, facilitating money transfers and service payments. This accessibility allows the population to obtain financial services using mobile phones and EMI agents located in the streets, simplifying transactions.
In the first half of 2024, the number of EMI agents expanded by 12.2%, surpassing 252,000 and covering all 154 districts in Mozambique. The government has initiated plans to tax the commissions earned by agents and EMIs, which together manage almost 20 million accounts, thus broadening the tax base and enhancing revenue collection from the digital economy sector.
A government report indicated actions taken in 2024, which included drafting legislation to tax these commissions, although further details remain undisclosed. Notably, 787 mobile wallet agents registered and received a tax identification number (NUIT) during this process, marking a step towards formalizing this sector.
Bank account numbers in Mozambique increased by 10% in 2024, totaling 6.2 million accounts; however, EMIs observed a substantial growth with their accounts rising by 18.5% to 19,870,700. This signifies a trend where e-money accounts have outpaced traditional banking growth, having nearly tripled in comparison to four years earlier, when they numbered 10,833,801 in 2020.
The decline in ATM and POS coverage in Mozambique highlights a shift in the financial landscape towards digital solutions such as mobile wallets. With the government aiming to tax the commissions of EMIs and a significant rise in the number of EMIs and their accounts, accessible financial services are becoming increasingly prevalent. This transition underscores the need for effective regulation and adaptation within the evolving digital economy.
Original Source: clubofmozambique.com
