“In recent years, Mozambique has witnessed a significant increase in remittance flows. In 2022, the country received $544.8 million [€469 million] in remittances, a notable rise compared to the $93.4 million [€80.5 million] recorded in 2016,” according to the report outlining the National Financial Inclusion Strategy to be implemented until 2031.
The document from the Ministry of Finance notes 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 highlights that these “are a vital component in the landscape of financial services in Mozambique.”
“Particularly due to the continuous exportation of migrant labor to neighboring countries, notably South Africa,” the report states, assuming that the use of remittances “has been steadily growing.”
In 2019, 32% of adults in Mozambique sent or received money through remittances, “a notable increase from 23% in 2014,” it further notes.
It adds that among the various channels available for remittance transfers, electronic money “dominates the market,” with around 80% being sent through these mobile-based services, which include three operators in Mozambique.
“Capitalizing on the growing availability and convenience of mobile phones in the country,” the report acknowledges, emphasizing that beyond electronic money, “informal channels also play a significant role, representing 12% of remittances.”
“These channels often involve trust networks, such as community groups or money transfer agents, facilitating the transfer of funds between individuals. Additionally, 11% of remittances are exchanged through transactions with family and friends, offering a direct and personal means of transfer,” the report states.
Bank channels represent only 7% of the remittance market in Mozambique.
