Futuro Microbank

Access to finance is a major obstacle to the development of all economic activities. Despite some improvements thanks to mobile banking, financial inclusion in Mozambique remains a challenge, as low-income groups are still excluded from formal financial services because they do not meet the requirements of formal banks (e.g. identity cards, collateral), they lack information about the financial services offered, or because commercial banks consider them too risky and the interest rates are too high. There are large and persistent rural and gender gaps in access to finance and the provinces of Nampula, Cabo Delgado and Niassa have the lowest level of financial inclusion in the country. In these regions, micro, small and medium enterprises don’t have access to or insufficient access to financial services which limits their potential to grow and to create jobs.

Switzerland founded Futuro in 2017 with an initial capital injection of CHF 1 million, and is the main shareholder to date. The Swiss Agency for Development and Cooperation co-financing technical assistance remains crucial to enable Futuro to expand and effectively implement its 2023-2027 business plan.

Expected results:  

• 4 new branches of Futuro Mcb are created in Niassa, Cabo Delgado, Zambézia and rural areas outside Nampula city
• Increased capacity of Futuro operational staff
• Effective digital solutions that meet clients’ needs and enhance operational efficiency are developed
• Development of new financial products relevant for the needs of the agricultural sector

Results from previous phases:  

• Low income women and men enterpreneurs benefited of access to affordable commercial financial services (loans, savings, insurance) permiting them to enhance their business and livelihood from 2017-2023. 20’350 MSMEs accessed loans (67% poor women)
• Financial literacy (and business skills) training provided to over 25,000 future clients
• High leverage of public funds (CHF 14.5 million in loans, i.e. 14.5x Switzerland’s initial capital investment)
• High loan repayments and lower level of writeoffs than the banking sector average, even during Covid
• Futuro is profitable since 2021
• Futuro is now an established market player and has gained international recognition by securing a Swiss franc (CHF) 1.8 million loan from International Fund for Agricultural Development (IFAD)

Bank of Mozambique; IFAD

SDC Projects: Skills for Youth in Mozambique (SIM!-skills development), PREMIER-Oholo (PRO - entrepreneurship), Promoting of Sustainable Agricultural Market Systems (PROMAS)