Representatives of macro-financial institutions (MFIs), in coordination with the Mozambican Association of Microfinance Operators (AMOMIF), are preparing to submit a compilation of comments and observations on the Bank of Mozambique's (BdM) proposal for a new Regulation of the Law on Credit Institutions and Financial Companies (LICSF). 

The presentation of an exhibition expressing the concerns and opinions of the MFIs was agreed at the end of a debate, with hybrid participation (physical and electronic), held on Wednesday, December 14.

During the debate, the feeling emerged that this regulation contains improvements, but that some adjustments are possible and opportune to reinforce the potential of microfinance in building a more inclusive financial system.

The fact that the proposal is a single instrument, containing a consolidation of all the regulations arising from the LICSF, is an advance on the previous regulatory dispersion.

Other new examples that AMOMIF sees as improvements are the fact that Savings and Loans Organizations are no longer limited to a maximum of 200 members, and that Microcredit Operators can pass on their business to heirs.

However, aspects were also identified that recommend some adjustments, in particular the inclusion and worsening of the annual fees to be paid to the BoM by MFIs, the procedures relating to misdemeanors that are not in line with other legal principles, as well as the deadlines for implementing these new regulations.

AMOMIF organized this debate as part of the challenge launched by the Bank of Mozambique at a meeting held on December 1 at the regulator's premises, with a view to broadening the consultation on the proposed new LICSF regulation.

To help MFIs better understand the legal aspects of the draft regulation, and to prepare for the process of its implementation, AMOMIF's board of directors hired a legal consultant who gave a presentation and comments on the regulation. This presentation can be accessed on the AMOMIF website.

In addition to the comments and recommendations made at the meeting on the 14th, MFI representatives interested in adding more elements should do so by the 19th, as the document compiling all the comments must be submitted to the BoM by December 21st.

Those interested in submitting observations and comments to be forwarded to the BdM should do so to AMOMIF's general email address (amomif@amomif.org.mz) .

Legal assistance for AMOMIF members is one of the priorities in the association's strategic plan to relaunch the macrofinance industry.

As part of this assistance and with the support of the REFP project financed by IFAD (International Fund for Agricultural Development), AMOMIF is subsidizing the installation of banking software in MFIs, as well as management training activities.

AMOMIF's plan for 2023 is to adjust its mandate so that it can provide more assistance to community savings and credit organizations and thus broaden the social base of financial inclusion.