Banking to become available to more Mozambicans.

7:44 AM Harts for Africa 0 Comments

(2011-06-10) The publicly owned company Correios de Moçambique (Mozambique Post Offices) is set to introduce a new postal bank by the end of this year. It will target rural areas to boost financial services in remote parts of the country.

This was disclosed in Maputo on Thursday by the Chairperson of the Board of Directors, Jose Luis Rego, during a press conference to mark the company's 30th anniversary.

Established in 1981, Correios de Moçambique was transformed into a publicly owned company in 1992 in a move to separate postal services from telecommunications.

"We are planning to establish a postal bank for the expansion of formal financial services, primarily in rural and low income urban areas", said Rego.

He believes that there is enough room in the financial market to accommodate a postal bank. Recent estimates suggest that the formal banking system only covers just over 40 per cent of the population.

Rego also stated that his company intends to build its distribution capacity to ensure reliability and to speed up the delivery of parcels and mail, particularly in the business sector segment.

Rego stressed the need for his company to increase its number of clients by establishing an express mail delivery service capable of competing with the small private companies operating in that sector.

In recent years Correios de Moçambique has been through serious difficulties, including the inability to pay salaries, and has had to make use of bank loans.

The company employs 621 workers, of which over half work in Maputo.

(Source: AIM NEWS)