Mozambique: Remittance inflows see six-fold rise in seven years

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Mozambique: Remittance inflows see six-fold rise in seven years

1:06 CAT | 18 Aug 2025

FILE - For illustration purposes only. [File photo: Lusa]

Remittances sent home by Mozambicans working abroad increased almost six-fold in seven years, reaching the equivalent of US$544.8 million in 2022, according to official data consulted by Lusa.

“In recent years, Mozambique has seen a significant increase in remittance flows. In 2022, the country received US$544.8 million in remittances, a notable increase compared to the US$93.4 million recorded in 2016,” reads the report on the National Financial Inclusion Strategy to be implemented by 2031.

The Ministry of Finance document states that, in terms of remittances, “the national market is structured around multiple channels and actors, which play a crucial role in the country’s financial inclusion strategy” and “are a vital component of the financial services landscape in Mozambique”.

“Particularly due to the country’s continued export of migrant labour to neighbouring countries, notably South Africa,” the report notes, the use of remittances “has been growing steadily”.

In 2019, 32% of adults in Mozambique sent or received money through remittances, “a notable 23% increase compared to 2014”.

The report adds that among the various channels available for remittance transfers, electronic money “dominates the market”, as approximately 80% are sent through these mobile phone-based services, which have three operators in Mozambique.

“Capitalizing on the growing availability and convenience of mobile phones in the country,” the report further acknowledges, emphasizing that in addition to electronic money, “informal channels also play a significant role, representing 12% of remittances”.

“These channels often involve trusted networks, such as community groups or money transfer agents, which facilitate the transfer of funds between people. Furthermore, 11% of remittances are exchanged through transactions with family and friends, which offers a direct and personal means of transfer,” the report reads.

Also noteworthy is that official banking channels represent only 7% of the remittance market in Mozambique.

Source: Lusa