Mozambique banks 'continue to grow'

Feb 24, 2011

The Mozambican banking sector appears to have weathered the global recession well, with research revealing an increase of 17.9 per cent in total profit for 2009 compared with 2008.

According to consultancy company KPMG, total profit for the country's banks reached 3.7 billion meticals (€86 million), with the ongoing boom attributed predominantly to "the continuous acceleration of the system's total loans, which increased by 63.85 per cent in 2009", All Africa reports.

Smaller institution Procredit Bank was found to be the most profitable for the year, with a return on average equity of 38.6 per cent, although it was followed by the three primary finance houses - Standard Bank, the International Bank of Mozambique and the Commercial and Investment Bank - with 37.95 per cent, 36.3 per cent and 32.37 per cent respectively.

Mobile money transfer services could also soon be available in Mozambique, with Michael Joseph - director at telecommunications company Safaricom - selected by The World Bank to spearhead expansion in developing countries.