Mozambique: Post Office to provide financial services
It has signed a partnership agreement with the country's largest bank.The Mozambican Post Office is to provide financial services in the country following the signature on Friday (November 20th) of a Memorandum or Understanding with Millennium BIM, the country's largest commercial bank.
Under the partnership agreement, the Post Office agrees to act as an agent for the bank and to offer financial services in its 120 branches throughout the country.
The initiative is intended to extend banking services to areas where there are no bank branches. It will also enable the Post Office to reopen around 90 branches which were closed during recent political troubles.
Millennium BIM chairman Rui Fonseca said he believed the partnership would bring benefits to both sides, the Mozambique News Agency reports. "BIM will gain through expanding its financial network, while the Post Office will once again be able to make use of assets which have been abandoned for many years."
According to figures from the African Development Bank, approximately 90 per cent of Mozambicans do not have access to formal financial institutions, and credit is only available to an estimated three per cent of the population.