Characteristics of the Microfinance Sector & of the Three Institutions Involved in the Impact Assessment

This report relates to activities implemented during the 'Poverty Outreach and Impact Assessment' in Mozambique, namely the study of secondary resources in the financial sector and of the key characteristics of the microfinance institutions (MFIs), namely Socremo, Tchuma and NovoBanco that took part in the assessment.

The report presents:

• An overview of developments in the banking and microfinance sector in Mozambique, looking at:
  • Economic trends, poverty levels, the informal sector, micro-enterprises, HIV/AIDS;
  • The assessment of financial system stability, coverage of the banking network, outreach, portfolio and depth of the microfinance sector, markets and clients, products and services, legal framework;
  • Main sector constraints and challenges.
• Microfinance in the city of Maputo, examining:
  • The informal financial system;
  • Microfinance operators in Maputo.
• An estimate of the potential demand for microcredit in the city of Maputo, detailing:
  • The population profile;
  • The sectors of activity;
  • Wealth levels of the population by occupation.
• A description of key characteristics of the MFIs including objectives, products, outreach, growth, market share and profitability.

The report concludes that:

• Maputo has a developed and competitive market for business loans;
• While Socremo and NovoBanco aim to assist the low and medium-income strata, Tchuma's mission is to service emerging women entrepreneurs;
• Each of the MFIs has a different organizational structure;
• The lack of qualified human resources in Mozambique is the reason why all three MFIs make use of external expertise.