| Project Detail |
Increasing the provision of financial services to the rural population is one of the Governments main objectives. The project aims to offer diversified financial services 85% of the population without access, namely to micro and small entrepreneurs and women and men farmers. The services will be provided in a professional and profitable manner by a micro bank financed by a privately-owned Swiss private sector that will also develop a full professional curriculum for employees of banking and rural insurance institutions.
Background Efforts to reduce poverty and other social advances in Mozambique have not benefited all people equally. One of the main constraints to inclusion is the almost inexistence of financial services available to small businesses and farmers in rural areas. Financial services in Mozambique reach only 10% to 20% of the potentially active and bankable poor. The 2009 FinScope Survey estimated that 79% of adults do not have savings accounts and only 8% of adults have access to believe. The Micro Bank Fides Mozambique - MBFM, intends to offer diversified financial services to micro and small businessmen, women and men farmers, in a way adapted to their needs. MBFM is a microfinance institution built as a public-private development project funded by Swiss Cooperation in partnership with Swiss Microfinance Holding, which benefits from the technical expertise of Financial Systems Development Services AG - FIDES. The main challenge facing the construction of a sustainable microfinance institution in the Mozambican context is capacity building. The lack of qualified staff limits the growth of the sector. However, there are many talented young people, but not enough people in the local market that can be used as training resources in providing high-quality retail banking services. To meet this challenge, an Inclusive Finance Academy (INFINA) was created to develop an inclusive finance education program based on a vocational training approach developed in partnership with MBFM.
Objectives
Increase the employment, income and wealth of rural and urban citizens in Northern Mozambique through greater availability of financial products adjusted to the needs of the most vulnerable.
Target groups Micro entrepreneurs using self-employment strategies, small business owners with more formalized businesses and employing up to ten people. Small farmers and young people living in Nampula.
Medium-term outcomes
Access to close and diversified financial services by low-income rural and urban men and women in northern Mozambique is increased.
The types of financial services offered by the new microbank will be diversified and will include products targeting vulnerable small farmers, men and women, and entrepreneurs in order to increase their assets.
The availability of well-trained rural banking personnel with the appropriate skills and behavior to serve these clients is increased for the financial sector as a whole.
Activities Micro Bank Fides Mozambique uses innovative microfinance methodologies to reach two main customer segments:
Microentrepreneurs in villages and villages through joint liability groups.
Small formalized companies, through individual credit products.
The diversity of financial services will be progressively open to a wider range of retail banking services, such as savings and deposits. Academy of Inclusive Finance: Creates capacity in the operational staff (field staff, customer contact boxes, administrative area and accounting support) of the MBFM, with emphasis on the entry level candidates. A three-year internship program focusing on microfinance, covering theoretical and practical aspects and applied skills related to:
Market studies
Financial math
computer skills
English
Communication
Trainees spend 80% of the time in the field, which includes practical operational experience (in the bank and in communities with clients).
Results Expected results:
Action Plan and realistic budget for the year 2015 approved by the Board of Directors. To reach 14 000 clients with a credit portfolio of around MZN 64 million.
Expand the services offered at INFINA, as well as the type of clients served, including candidates for intermediate management positions, other microfinance institutions, banks and companies.
Results from previous phases:
Micro Bank Fides Mozambique has built a portfolio of around 2 500 clients, with a loan portfolio of around MZN 3.3 million.
The credit granting methodology based on the creation of common responsibility groups (DEGO) is appropriate to the constraints of the clients.
MBFM also began cautious lending to Small Business, based on a classic individual credit technology. These first months also confirmed the high demand for financial services among low-income entrepreneurs. Many customers have already shown interest in saving money with MBFM.
The team consists of 81 people and a new group of 25 trainees is starting their internship process.
There is interest in the skills and research that INFINA offers, due to the customer-oriented approach. Developing skills through internships, with a strong component of learning by doing. Of the 74 trainees trained, 51 remain in the MBFM framework. |
