United Kingdom and Sweden support access to financial services in Mozambique

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United Kingdom and Sweden support access to financial services in Mozambique

7:57 CAT | 28 Nov 2016

A Bola (File photo)

The United Kingdom and Sweden signed an agreement in Maputo this week to finance an EUR 18 million program to secure access to financial services for populations in need and small businesses.

According to a statement from the Swedish representative in Maputo, the cooperation agreement foresees the channelling of 40 million krona by Sweden (EUR 4.1 million) and GBP 11.9 million (EUR 14 million) by the British Department for International Development, and aims to reach 650 micro, small and medium-sized enterprises and more than two million people in vulnerable situations, especially in rural areas, without access to financial services in Mozambique.

The agreement will finance Mozambique’s Financial Sector Deepening program and will begin immediately, with a duration of three years, in conjunction with donors, companies, communities and the Mozambican government.

“The 4.9 million micro, small and medium-sized enterprises are the most important players in creating productive employment and making inclusive growth a reality,” said Mikael Elofsson, Head of Cooperation at the Swedish Embassy, quoted in the statement.

Data presented in July by the World Bank in Mozambique indicates that only 24 percent of the adult population has access to formal financial services, compared to 13 percent in 2009.

According to the National Financial Inclusion Strategy, the Mozambican government expects 60 percent of the adult population to have access to financial services by 2022 and that all districts in the country will have at least one access point to formal entities.

Source: Lusa