Access to finance in Mozambique is very low across all sectors of the population; 77 per cent are deemed to be financially excluded. The most excluded are those with the lowest levels of education, lowest income and in the most remote locations. This report reviews the barriers for women’s access to finance, their current use of financial services and products, and the specific challenge of HIV/AIDS.
The key points arising from this review are:
- Women suffer from gendered norms which create barriers to access: low levels of education, skills and access to assets. The legal and policy situation in Mozambique is quite supportive for women, but they find it hard in practice to access finance, particularly due to the banks’ requirements for collateral and/or guarantees.
- Women as business owners are mostly concentrated in the small and medium enterprise sector (SME). There is policy support and legislation to support SMEs, which will largely target women’s enterprises.
- It is strongly noted that formal financial institutions and national policies do not make special provision for women’s needs. The barriers above are not widely considered by banks. In particular, the interest rate on loans is considered too high to be feasible for SMEs.
- There is reasonable access to microfinance from banks and microfinance institutions (MFI), but much less access to medium sized loans. There is very little support for growth and expansion for women’s enterprises beyond the micro level.
- Loans are usually taken from friends and family rather than any formal financial institution. Few women take loans to start businesses.
- Women do not tend to use banks for savings accounts; informal savings associations are highly popular, perhaps because they fit women’s needs better than formal systems. There is a strong interest in saving, especially to provide a buffer against emergencies.
- HIV/AIDS requires more flexible bank products, including the ability to miss payments without high penalties, and life insurance or savings which will help provide for family members.
- Mozambican women remain unbanked due to both supply and demand. Bank branches do not reach into rural areas, nor offer accessible and suitable products; and women do not have a high demand for credit.
