Speaking shortly after inaugurating a new branch of the country's largest commercial bank, Millennium-BIM, in the Maputo neighbourhood of 25 de Juno, Gove said that there is plenty of wealth in the rural areas, but that is not properly saved due to the shortage of banks.
"There are many resources lying idle, and they cannot be channelled into the official sectors, if we do not go where they are", said Gove, stressing the government's repeated call for the commercial banks to come closer to clients living in the rural areas, and encourage them to save.
He added that it is important to introduce the banking system into the rural economy to enhance domestic savings in the country, which is still dependant on foreign resources.
"The spirit of dependence on foreign aid is not sustainable", said Gove. "We must use our own resources and only resort to foreign ones in case of need".
The Central Bank, in coordination with the Ministries of Finance, and of Planning and Development is studying a package of incentives for those banks that intend to expand into rural areas. Gove said that this study is now at an advanced stage, and the banks will have it available before the end of this year.
Millennium-BIM officials expressed commitment to expand their bank's services to the rural areas. BIM Chief Executive Officer Joao Figueiredo, said that the bank is planning to open another 16 branches across the country before the end of this year.
"The number of branches in our network has remained unchanged, at 76, for the last five years', he admitted.
He explained that the branch inaugurated on Monday is of a new model, with only five workers, but with the same services offered by far larger branches.
He said that it is this model that his company intends to expand to other areas in the near future.
SOURCE: AIM
