Mozambique’s ATM coverage declined for the fifth year to 7.4 machines per 100,000 adults, while POS terminals also decreased. In contrast, digital wallet agents have increased significantly, reaching 1,686 per 100,000 adults in 2024. The government plans to tax commissions from EMIs, reflecting the growing significance of the digital economy.
In Mozambique, ATM coverage has decreased for the fifth consecutive year, reaching a low of 7.4 ATMs per 100,000 adults in 2024. Data from the Bank of Mozambique indicates that the number of ATMs fell from 11 per 100,000 adults in 2019 to a total of 1,413 by last year. Correspondingly, the number of POS payment terminals has also declined, with coverage dropping from over 229 to 190 per 100,000 adults during the same period.
Conversely, digital wallet agents from Electronic Money Institutions (EMIs) have seen significant growth, increasing to a record 1,686 per 100,000 adults in 2024, compared to just 350 in 2019. Three EMIs operate in Mozambique, enabling financial services through mobile phones, which facilitates wider access to financial transactions for the populace.
As of the first half of 2024, the number of EMI agents grew by 12.2% to more than 252,000, covering all 154 districts in the country. In light of this growth, the government proposed taxing the commissions earned by agents and EMIs, with plans already submitted to Parliament. Current estimates suggest there are nearly 20 million accounts in this sector.
The number of registered mobile wallet agents increased, and many were assigned tax identification numbers to help broaden the tax base and boost revenue from the digital economy. Furthermore, bank accounts in Mozambique experienced a 10% growth in 2024, totaling 6.2 million accounts, but EMIs outpace this with over 19.8 million accounts, highlighting the rapid rise of e-money solutions in the country since 2020.
In summary, Mozambique continues to experience declining ATM and POS terminal coverage, highlighting a significant shift in financial access modalities. The increase in digital wallet agents serves as a juxtaposition to this trend, evidencing a broader acceptance of electronic money solutions. Furthermore, the government’s intent to tax this growing sector underscores the importance of the digital economy, as the number of electronic money accounts significantly surpasses traditional bank accounts.
Original Source: clubofmozambique.com
