Futuro Microbank


The microfinance institution Futuro Mcb, SA currently provides financial services (loans, savings, insurance) to micro, small and medium enterprises (MSMEs) mainly in and around Nampula city. Switzerland will continue to support Futuro with a grant for technical assistance that will help the bank to expand its impact by providing financial services to more low-income entrepreneurs in more regions in Northern Mozambique, thus allowing them to enhance their income and create more jobs.

Country/region Topic Period Budget
Mozambique
Employment & economic development
Agriculture & food security
nothemedefined
SME development
Agricultural financial services
15.05.2024 - 31.12.2027
CHF  1’980’000
Background

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.

Objectives Rural and urban poor in Northern Mozambique have access to financial services to increase their income and create more jobs through a solid, reliable, innovative and client-oriented financial institution.
Target groups Micro, small and medium entrepreneurs from the urban and rural areas of the Northern Provinces of Mozambique and Zambézia.
Medium-term outcomes Outcome  1: Futuro’s Business Plan 2023–2027 will be effectively implemented through technical assistance.
Results

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)


Directorate/federal office responsible SDC
Project partners Contract partner
Private sector
  • Foreign private sector North
  • Foreign private sector South/East
  • Futuro Microbank ; Specialised firms in placement, communication and legal advice (to be identified)


Coordination with other projects and actors

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)

Budget Current phase Swiss budget CHF    1’980’000 Swiss disbursement to date CHF    458’754 Total project since first phase Swiss budget CHF   14’670’000 Budget inclusive project partner CHF   16’387’000
Project phases Phase 5 15.05.2024 - 31.12.2027   (Current phase) Phase 4 08.03.2021 - 31.03.2024   (Completed) Phase 3 01.04.2018 - 31.12.2020   (Completed) Phase 2 01.07.2012 - 31.12.2017   (Completed) Phase 1 01.08.2008 - 31.07.2012   (Completed)