Published : 3 months ago, on 28/08/2024

Absa Bank Moçambique is one of the oldest financial institutions in the country, having been founded in 1975. Over time, the bank has undergone several transformations, both in terms of its brand and service provision, always striving to uphold values such as trust, resourcefulness, stewardship, inclusion, and courage.

As one of the main banks in Mozambique, Absa has invested significantly in digital transformation, sustainability, social responsibility, gender equality, and support for small and medium-sized enterprises (SMEs). It continues to invest in digital services to enhance the experience of its clients.

Pedro Carvalho, Chief Executive Officer of Absa Bank Moçambique since September 2022, has over 30 years of experience in the banking industry. He joined Absa in Mozambique in 2014 as the Chief Operating Officer, then under the Barclays brand. Later, in 2018, he was appointed Director of Retail and Business Banking, a role he held until being designated CEO.

This year, Absa Bank Moçambique was the winner of three Global Banking & Finance Awards: for Mozambique’s Best SME Bank, Best Place to Work, and Best Financial Institution for Women Empowerment. When Pedro spoke with Wanda Rich, editor of Global Banking & Finance Review, he gave some insights into what has contributed to the bank’s ongoing – and award-winning – success.

He began by discussing what is a key area of focus for Absa Bank Moçambique: its significant support of Mozambican SMEs. “Absa Bank Moçambique is dedicated to supporting SMEs through partnerships and tailored banking solutions,” Pedro said. “In 2023, we formalised an agreement with the Institute for the Promotion of Small and Medium Enterprises (IPEME), the Public Institute (IP) and the Association for Small and Medium Enterprises (APME) to boost SME development and revitalise the national economy.”

This partnership, he explained, enhances Absa Bank’s understanding of SME needs, enabling it to refine its offerings to better meet their requirements. “We facilitate access to bank credit for SMEs and provide treasury support to help them become more competitive. Our SME loan campaign has disbursed approximately 250 million meticais to SMEs, with 144 million disbursed this year alone. Additionally, we are developing innovative solutions to reduce financial access risks for SMEs within corporate value chains.”

He went on to outline another factor in Absa’s success story that has received recognition, namely, its commitment to a healthy working environment that supports the well-being of its employees. “At Absa, we recognise that the success of any organisation is closely linked to the well-being and satisfaction of its employees. We have a genuine commitment to creating a working environment that stimulates the talent, creativity and dedication of our people.”

He added that the quality of Absa’s working environment has been augmented by substantial investment. “This includes diversity initiatives, flexible working policies, cultural development and comprehensive employee training programmes. We also promote continuous career development, ensuring that our diversity initiatives are aligned with principles of equality and fairness. Notably, we are the only national financial institution to achieve gender balance within our Country Management Committee.”

Within Absa Bank Moçambique, efforts to advance diversity and gender equality have made headway, and new projects are in the works to carry these objectives even further. “At Absa, we have implemented inclusive hiring policies and professional development programmes for women,” Pedro said. “In 2022, we launched the ‘EmpowerHer’ programme featuring masterclasses and dialogues on topics such as bias, inclusive leadership, alliances, sustainability and mutual promotion. In 2023, the ‘IgniteHer’ programme focused on developing confidence, contextual leadership, self-care and building relationships, involving organisational leaders, male employees and line managers to promote sustainable workplace change.

“As part of our 2023-2025 strategic plan, approximately 40% of women in middle leadership positions are taking a postgraduate course in leadership skills, covering topics like servant leadership, assertive communication, bank management and agile decision-making. Additionally, we have established the Women’s Forum, which promotes a safe space for women and men to share experiences and ideas and foster the development of professional women. We plan to launch further initiatives focused on female leadership and create a more inclusive work environment.”

These persistent principles of flexibility and inclusivity are similarly reflected in Absa’s digital transformation strategy, as is demonstrated by the wide range of new technologies it is embracing to enhance its operations and improve the client experience. “Our strategy includes the implementation of advanced digital banking platforms, mobile banking applications and online services that offer greater convenience and accessibility to our clients,” Pedro reported. “We continue to invest heavily in our digital services, aiming to provide a seamless and efficient banking experience. By digitising our services, we have made it easier for clients to access their accounts, perform transactions and manage their finances, anytime and anywhere.”

He also revealed that Absa is leveraging AI (artificial intelligence) and ML (machine learning) to drive predictive analysis, offer personalised investment advice and streamline financial product offerings. “These technologies bring significant benefits such as increased efficiency, better decision-making and new job opportunities in fields like data science and AI development.

“Our commitment to digital transformation extends to ensuring a responsible and regulated implementation of these technologies. We are focused on a gradual approach that allows the banking sector and its customers, partners and employees to maximise the benefits of digitalisation. By continuously enhancing our digital infrastructure, we aim to lead the market in providing innovative and customer-centric banking solutions.”

Absa Bank Moçambique has taken a number of actions to reaffirm its commitment to environmental sustainability, including becoming a signatory to the United Nations Global Compact in 2021. “We are investing in renewable energies and digitising services to reduce paper usage,” Pedro said. “Across the country, we have inaugurated environmentally friendly branches that are powered by photovoltaic solar energy.

“Our latest environmental commitment, aligned with SDG 13 (Climate Action), involves a Memorandum of Understanding with Maputo National Park to promote environmental conservation, community development and high-value collaborative networks. This project impacts more than 168,000 families living in the surrounding areas, fostering environmental awareness and sustainable practices that benefit the entire community. These actions are part of our broader effort to support the SDGs and contribute to a greener, more resilient Mozambican economy.”

In addition to its environmental initiatives, Absa exhibits a deep commitment to social responsibility through programmes involving youth and children, as detailed by Pedro. “We support initiatives that focus on inclusion and preparing young people for the work environment, aligned with SDGs 4 (Quality Education) and 8 (Decent Work and Economic Growth). Our ‘Ready to Work,’ ‘Ready for Art,’ Graduate Programme and ‘Xiquitsi’ projects are prime examples of this commitment. These programmes provide training, personal development and professional skills to young people, fostering their inclusion in the economy and equipping them for future employment opportunities.

“By integrating these social initiatives with our sustainability efforts, we strive to create a holistic impact on Mozambique’s development, ensuring that our contributions are comprehensive and far-reaching.”

Pedro expanded on some recent examples of impactful CSR (corporate social responsibility) initiatives that Absa has engaged in, and highlighted how they have benefited local communities. “Absa’s CSR initiatives are numerous and impactful. Our Ready to Work, Ready for Art, Graduate Programme, and Xiquitsi projects have significantly contributed to the personal and professional development of young people, promoting gender equality (SDG 5) and inclusive economic growth and decent work (SDG 8). Since its inception, Ready to Work has trained over 18,000 young people, while the ‘Xiquitsi’ project has benefited 250 children and teenagers in vulnerable situations.”

Absa has also launched financial education projects in schools, Pedro explained, training young people in practical financial management skills. “In 2022, our financial education campaign reached over 1,760 fifth graders nationwide. This year, we initiated a financial literacy campaign through humorous radio soap operas in 12 national languages, including Portuguese, trying to reach all the population covered by the regional radio stations. These programmes have a profound impact on local communities by empowering them with essential knowledge.”

The Ready to Work and Graduate Programme initiatives, in particular, focus on youth development and employability, and Pedro noted that they have been instrumental in preparing young people for the professional world. “Ready to Work is not just a training programme but a strategic tool that helps young people transition from academic life to the workforce and has trained over 18,000 youths in its eight years of existence,” he said. “Meanwhile, our Graduate Programme exposes young people to the banking sector, consolidating their academic knowledge and fostering new skills. These initiatives have positively impacted youth employability, helping many to secure jobs, start businesses or join Absa Bank. Since its inception in 2016, 126 young individuals have spent nine months working in various departments of the Bank, gaining exposure to different realities and experiences. Out of these, 81 were absorbed by the Bank, while 41 went on to pursue different opportunities in the job market.”

Finally, he discussed what he sees as coming next for Absa Bank Moçambique, including the key challenges and opportunities he predicts the bank will need to navigate over the next few years. “We face challenges such as technological evolution and regulatory changes, but we also see opportunities to innovate and expand our services,” he said. “Mozambique presents numerous investment opportunities in public infrastructure, industrial production, mechanised agriculture and the oil and gas sector.

“At Absa, we aim to contribute to Mozambique’s economic growth by supporting key sectors through our services. We see significant opportunities in expanding our offerings and strengthening our market presence, positioning ourselves to navigate the dynamic landscape of the banking industry effectively.”

Pedro concluded by reaffirming Absa’s commitment to Mozambique. “As a bank that prioritises people, we aim to continue enhancing the lives of Mozambicans, particularly the youth, by supporting their investments and innovations with Absa as their trusted partner. We plan to strengthen our community relationships, making a positive contribution to Mozambique’s economic development and fulfilling our purpose: ‘Empowering Africa’s tomorrow together… one story at a time.’