Enhancing Financial Inclusion for Smallholder Farmers in Mozambique

Financial inclusion plays a critical role in empowering smallholder farmers, providing them with access to savings, credit, and payment systems to enhance agricultural productivity. The JFS-RESET Financial Inclusion Pilot Project, launched in partnership with Letshego and FSDMoç, sought to bridge the financial access gap for cotton farmers in Niassa Province, Mozambique. Given that 67% of Mozambique’s adult population lacked financial services, with even higher exclusion rates among farmers (79%), the initiative aimed to introduce digital banking solutions to enable better financial management, savings, and secure transactions for rural producers.

Key Findings

The pilot successfully tested the LetsGo digital financial solution, with 286 accounts opened out of a target of 600, allowing farmers to deposit and withdraw money securely. However, low financial literacy, limited mobile network coverage, and cultural factors—especially among women—hindered broader adoption. Farmers valued the security of digital transactions but faced technical challenges such as difficulties using USSD services and issues with biometric verification for account setup.

Despite these challenges, 85% of the farmers expressed satisfaction with LetsGo, appreciating the ability to plan expenses and reduce financial risks. However, only 11% of female farmers enrolled due to low literacy rates, lack of phone access, and cultural norms restricting women’s financial decision-making. Agents played a crucial role in account setup and transactions, but liquidity constraints occasionally affected withdrawals, highlighting the need for enhanced cash management strategies.

The project demonstrated the potential of mobile banking to revolutionize financial services for rural farmers but emphasized the need for further improvements. Scaling the initiative requires stronger agent networks, increased financial literacy efforts, improved network coverage, and enhanced customer support. Additionally, integrating insurance products and flexible credit facilities could further strengthen the financial resilience of smallholder farmers.

The pilot project provided valuable insights into the challenges and opportunities for expanding financial services in rural Mozambique. While it successfully introduced a secure and accessible banking system, gaps in digital literacy, mobile coverage, and gender inclusivity must be addressed to maximize impact. A structured approach involving financial education, improved service accessibility, and enhanced agent networks is essential for sustainable financial inclusion in Mozambique’s agricultural sector.

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RESET Foundation is committed with the The Sustainable Development Goals (SDGs). The Letshego project is linked to several SDGs:

The SDG'sG's, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.