Microfinance : Loans and Deposits on the Rise Across WAEMU, Despite Portfolio Qu...

Oct 2018
West Africa, October, 16 2018 - At end-June 2018, access to microfinance services across the West African Monetary Union (WAEMU) rose by 10.7% on a year-on-year basis.

The number of people that benefited from the services over the period was 15,017,666, against 13,565,535 a year earlier. Also, the services were provided by 593 decentralized financial services (DFS).

As a result of the improvement, loans and deposits increased also. However, quality of credit portfolio degraded, falling far below required standards.

In details, loans granted by DFS in the Union expanded by 11.5%, amounting to CFA1,274.1 billion. A growth driven by Côte d’Ivoire (+18.9%), Burkina (+16%), Benin (+14.7%), Mali (+11.1%), Togo (+10.5%), Senegal (+5.2%) and Niger (+3.6%). Guinea Bissau however recorded a drop of 3.5%.

As for deposits collected by the decentralized units, they amounted to CFA1,307 billion, against 1,216.1 billion the previous year, thus 7.5% more. While the rise is to be attributed to Côte d'Ivoire (+13.5%), Togo (+9%), Burkina (+7.9%), Mali (+7,9%) and Senegal (+6.4%), it could have been greater if not for Guinea Bissau, Benin and Niger which recorded lower deposits (-30.4%, -3.7% and -2.6% respectively).

Regarding the quality of loans portfolio, main asset and revenue provider of microfinance institutions, it slumped by 2.6%. Indeed, while it stood at 6.3% at end-June 2017, gross portfolio degradation rate rose to 8.9% this year. This is against a standard of 3%, often admitted in the sector.

At the end of June 2018, eight microfinance institutions were placed under provisional administration ; two in Togo, two in Benin, one in Côte d’Ivoire, Mali, Niger and Senegal respectively.


Source : Togo First

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