The German Savings Bank Foundation for International Cooperation (SBFIC) shares its expertise by proposing a new economic model to Microfinance Institutions (MFIs). The mastery of the fundamental financial stakes proves to be a necessity to achieve financial inclusion in order to bring professionals in the sector to break with the ambient “artisanal” management, and to appropriate a modern management model making it possible to establish a financial and efficient ecosystem conducive to business development.
An initiative welcomed by the Minister of Finance Louis Paul Motazé, not only because this approach contributes to the improvement of banking services, but also to the development of economic activity. This is understandable, especially since the MFIs play a full part in financing the national economy.
According to the Association of Professionals of Credit Institutions in Cameroon (APECCAM), the 419 MFIs listed as of December 31, 2020 achieved a turnover of 519 billion FCFA, approximately 963 million dollars, of which 394 billion credits granted. That is a contribution of 10% to the financing of the national economy.
Despite these encouraging figures, there is still a long way to go to “claim a financially stable and efficient sector in line with its original vision, which is based on improving the living conditions of low-income populations”, insisted the Minister of Finance.
The reforms undertaken by the Central African Banking Commission (COBAC) have brought more stability to MFIs, whose relatively flexible debt conditions compared to conventional banks make it one of the main providers of funds to small and medium-sized enterprises. businesses (SMEs) and individuals.