maliweb.net – Microfinance institutions in Mali: Loss of 2.9 billion CFA francs in 2020

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According to statistical data for the year 2020 published by the Banking Commission of the West African Monetary Union (Umoa), microfinance institutions in the monetary zone posted a balance sheet total of 2,561.0 billion CFA francs, up by 9.1% compared to the end of 2019. Their net uses increased by 6.4%, to reach 1,786.0 billion CFA francs at the end of 2020. As for resources, they increased by 8.7% to settle at 1,932.8 billion CFA francs. The gross and net portfolio deterioration rates stood at 9.2% and 8.1% respectively at the end of 2020, up by 5.3 points and 5.0 percentage points compared to 2019. 17 decentralized financial systems (SFD) of Mali which have a total balance sheet representing only 8.7% of the total balance sheet of Umoa, recorded losses of 2.9 billion CFA francs.

Based on the accounting data received by the Umoa Banking Commission for the last two financial years, namely 2018 and 2019, the number of SFDs falling under Article 44 has increased by fourteen (14) units to stand at one hundred and eighty eight (188) institutions.

It should be noted that, according to the provisions of Article 44 of the Law regulating Decentralized Financial Systems and those of Bcéao Instruction No. 007-06-2010 relating to the methods of control and sanctioning of Bcéao and the Umoa Banking Commission, the Central Bank and the Banking Commission proceed, after informing the Minister, to control any decentralized financial system, the level of activities of which reaches a threshold of two (2) billion CFA francs. outstanding deposits or loans at the end of two (2) consecutive financial years.

The landscape of Sfds falling under article 44 is made up of eighty-four (84) networks and unitary institutions and one hundred and four (104) basic funds affiliated to a network. Unitary networks and institutions include non-affiliated companies, associations, networks and mutual institutions or savings and credit cooperatives (Imcec). The average capitalization ratio of UMOA SFDs stood at 22.9% in 2020 against 22.6% in 2019, for a minimum standard of 15%.

Total balance sheet of DFS in Mali: 8.7% of that of Umoa

The financial and statistical data analyzed by the Commission Bancaire concern one hundred and eighty-two (182) SFDs, i.e. 96.8% of large institutions. For Mali, there are 17 SFDs, distributed as follows: ten (10) networks and unitary institutions (three (3) companies, two (2) associations and five (5) networks). In addition, there are ten (10) base caisses affiliated with a network. Their total balance sheet weighs only 8.7% of the total balance sheet of all Umoa SFDs, both in 2020 and 2021.

At the end of 2020, these Umoa establishments posted a balance sheet total of 2,561 billion CFA francs, up 9.1% compared to the end of 2019, in connection with the evolution of assets in Côte d’Ivoire ( +16.4%), in Burkina (+14.3%), in Niger (+12.5%), in Mali (+9.1%), in Benin (+6.3%), in Togo ( +5.7%) and in Senegal (+4.5%).

Customer loans consolidated by 5.6%, at an annual rate, to stand at 1,447.9 billion CFA francs at the end of 2020. They are composed of short-term loans, medium-term loans, long-term credits, outstanding debts and leasing operations. Short-term credits amounted to 634.2 billion CFA francs, or 43.8% of total credits, recorded an annual decrease of 0.5% . As for medium-term loans, they amounted to 393.8 billion CFA francs at the end of 2020. Totaling 27.2% of loans, they showed an annual decline of 7.9%. Long-term loans are valued at 301.5 billion at the end of 2020, i.e. 20.8% of all loans. They experienced an increase of 14.6% on an annual basis.

Decline in financial fixed assets of 4.5% in Umoa

Net outstanding debts, established at 118.3 billion CFA francs against 42.9 billion CFA francs a year earlier, recorded an annual variation of 175.9%. Investment securities are valued at 8.8 billion CFA francs at the end of 2020, up 36.1% compared to the previous year.

Financial assets fell by 4.5% over one year, to stand at 39.8 billion CFA francs. Other fixed assets increased by 6.4%, year-on-year, to stand at 124.4 billion CFA francs in 2020.

As for the various uses (related receivables, inventory accounts, miscellaneous debtors, suspense and miscellaneous accounts, etc.), their level reached 152.2 billion CFA francs in 2020, consolidating by 6.4% compared to 2019 .

Resources mobilized by Sfds under article 44 increased by 8.7%, year-on-year, to reach 1,933.5 billion CFA francs as of December 31, 2020. They are made up of deposits and borrowings (62.4% ), net equity (30.4%) and other resources (7.2%).

Deposits and borrowings increased, on an annual basis, by 8% at the end of 2020, to stand at 1,206.8 billion CFA francs. They consist of sight and term deposits, in respective proportions of 55.4% and 44.6%.

The net equity of Sfds falling under article 44 increased by 10.7% to 586.9 billion CFA francs against 530.0 billion CFA francs at the end of 2019.

As for other resources (related debts, payments to be made on securities and financial fixed assets, suspense and miscellaneous accounts, provisions for risks and charges), they increased by 6.9% to stand at 139.8 billion CFA francs at end of December 2020.

Profit margin up 0.6%, year on year in Umoa

The cash flow of Sfds falling under article 44 remained in surplus, posting 160.4 billion CFA francs at the end of 2020 against 99.4 billion a year earlier, an improvement of 61.4%. This trend is the result of an increase in resources (+8.7%) greater than that of uses (+6.4%).

As of December 31, 2020, the net financial product (NFP) of Sfds falling under article 44 stood at 257.4 billion CFA francs, up 0.6%, at an annual rate.

It should be noted that the profit margin, which measures the share of operating income generated on the total amount of operating income, fell by 3.9 percentage points between 2019 and 2020, from 7.7% to 3.8%, for a minimum standard of 20%.

The profits are distributed, in order of importance, between Senegal (8.5 billion Fcfa), Burkina (5.4 billion Fcfa), Côte d’Ivoire (4.2 billion Fcfa), Benin (3.2 billion FCFA) and Togo (1.8 billion FCFA). Mali and Niger recorded respective losses of 2.9 billion FCFA and 1.4 billion FCFA.

Disciplinary sanctions

It should be noted that under the provisions of Articles 31 and 32 of the Appendix to the Agreement governing the Banking Commission, the Supervisory Authority took, after having duly convened and heard the managers of Sfd establishments established in Umoa , disciplinary sanctions, namely six (6) reprimands and one (1) warning. In particular reprimands against four (4) credit institutions: in Benin (1), Burkina (1) and Senegal (2); blame against a Sfd installed in Mali (1); reprimand against a leader of a Sfd from Mali (1) and a warning against one (1) leader of a Sfd from Mali. As we can see, of the seven disciplinary measures announced, three (3) concern Mali.

Amadou Bamba NIANG

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