Microfinance in Mozambique: Achievements, Prospects & Challenges

This report traces the development of microfinance activity in Mozambique. It also assesses the current status of microfinance sector in Mozambique.The report:

• Tracks the changes that have occurred within the microfinance sector of Mozambique;
• Analyzes the results of the 2005 microfinance operator survey and compares these with the results of earlier studies;
• Discusses the potential role of microfinance in rural areas.

It further studies the impact of microfinance on urban and rural clients. It analyzes:

• Urban and rural socio-economic environments;
• Informal financial practices;
• Client borrowing patterns;
• Depth of outreach;
• Impact of credit on economic activities;
• Impact of credit on the level of household welfare.

The report concludes by providing recommendations for:

• Addressing rural poverty through microfinance;
• Capacity building to meet projected expansion in rural areas;
• Developing financial products to better suit client needs;
• Increasing stakeholder participation in the evolution of microfinance;
• Confronting HIV/AIDS through microfinance.