Enhancing Financial Capability and Inclusion in Mozambique: A Demand-Side Assessment

This report provides recommendations to enhance financial capability and the level of financial inclusion in Mozambique. It is based on a financial capability survey conducted by the World Bank. The report acts as a follow up to the Mozambique Financial Sector Strategy 2013 – 2022 and suggests that around a third of Mozambique's population is not being reached by any financial service providers. It also states that there is a substantial overlap on the type of clients targeted by banks and other providers. The key recommendations provided in the report cover four main areas: a) financial inclusion, b) financial capability, c) relationship between financial inclusion and financial capability, and d) financial consumer protection. Besides recommendations, it also covers:

• Financial inclusion landscape in Mozambique with a focus on usage of banks and their products, usage of non-bank financial institutions and their products, and identification of barriers to formal account ownership;
• Overview of Mozambicans’ levels of financial capability with a focus on knowledge of financial concepts and products and financial behavior and attitudes of Mozambicans;
• Discussion of the relationship between financial inclusion and financial capability;
• Investigation into the extent of financial consumer protection in the country and whether expanded access will benefit consumers and the overall economy.