The microfinance sector in Mozambique remains young but is becoming increasingly sophisticated as some institutions reach maturity. However, these microfinance institutions operate mainly in the capital, Maputo, while a vast number of the rural poor remain underserved. To address this problem, the First MicroBank Mozambique (FMB-M) acts as a rural microfinance bank. The focus of its activities is Cabo Delgado, which is the northernmost province as well as the poorest in the country. At year end, FMB-M had a loan portfolio outstanding of US$ 53,000 and 87 borrowers.