1. Mobile Money: Impact and Challengers Addis Ababa, 30 th June 2015

2. PRESENTATION OUTLINE Overview Legal Framework Country profile Challenges 2

3. Overview 3  Mozambique is part of the Southern Africa region with approximately 800.000 km 2 ; population is around 24,4 millions with an adult population of 14,4 millions, for 2014.  Around three quarters of the adult population do not have formal bank account.  About 80% of the adult population have access to mobile phone

4. Legal framework  2007 – The Bank of Mozambique set up its bankarization strategy, establishing as one of objectives – the use of new technologies such as mobile payments, among others to offer financial services based on the experiences of other countries.  2009 Emend of the Financial Institutions act, to allow mobile financial services providers to operate in the markets, not as an MNO but as a stand alone company, either in a bank led model or non-bank led model. 4

5. Country Profile General indicators 5 NºNº IndicadorDec 2007Dec 2011May 2015 1.Bank branches274522576 2.Microbanks agencies and credit unions 101840 3. Mobile Payment Agents07,1519,615 4.Number of ATMs4311,1361,421 5.Number of POS3.64512,48115,700 6.Number of bank accounts1.237.5483,3347,4503,443,617 7.Mobile money users-2,961,4323,572,005 8.Mobile phone subscribers3.394.953,007.855.34512,064,652

6. Results  Households are moving from “saving on the mattress” to save on mobile phone and in some circumstances the mobile money a are used as a mean of payment;  The is an increase on the financial resources available to invest, since the money received in exchange of e-money has to be held on the trust account in a commercial bank;  There is an increase on the volume of ETF through mobile phones which may suggest that household are moving from buses and relatives to mobile phones to send money;  Step-forward to have a formal bank account which might help to get a loan or save without a limit. 6

7. Challenges of Regulator  Create an enabling environment;  Set up a regulatory framework to promote consumer protection and innovations on mobile money;  Promote financial education campaign;  Set up a strategy to ensure interoperability among e-money issuer and to ensure a non exclusivity of mobile payments agents;  Set up rules which protects the funds held in trust account;  Implement a cooperative oversight with other regulators such as communication authorities, on the process of licencing and oversight of e-money issuer. 7

8. Challenges Implement the MoU signed between the Bank of Mozambique and the telecommunications authority in other to: Achieve interoperability among e-money issuer; Involve the communications authority on the process of licencing and oversight of e-money issuer. 8

9. Thank You 9