IMPROVING FINANCIAL INCLUSION AND THE EXTRACTIVE SECTOR

This study aims to understand the interventions that are needed to catalyse financial sector growth and inclusion linked to the economic boom led by the extractives sector, and to answer three questions:

  • What are the opportunities to expand appropriate financial services to SMEs, individuals and rural households that are driven by economic activities linked to the resource boom?
  • What are the barriers to unleashing this potential?
  • What role can the Financial Sector Deepening-Mozambique (FSD-M) program play in unleashing the potential?

There are significant opportunities to build on investments and economic activities associated with the extractives sector in Mozambique, including to improve financial inclusion. However, basic features of the sector relevant to this goal should be kept in mind. These include that the sector can suffer from cyclic market pressure, which can have ramifications throughout the economy, and it generates limited direct employment though greater indirect employment, which is generally better suited to the capacities of SMEs.

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Author
Anabela Mabota