Microfinance in Togo: outstanding loans increase by more than 34% in 2021

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(Togo First) – In Togo, credits granted to economic actors not yet reimbursed (outstanding loans) by microfinance increased by more than 30% to 249 billion FCFA in 2021, after having stagnated a year earlier, due to Covid-19.

This improvement comes in a context marked by the gradual resumption of activities that had been impacted by the health crisis, maintains the BCEAO.

The same upward trend is observed in Ivory Coast (+27.6%), Burkina (+23.4%), Benin (+35.4%), Mali (+31.9%) and in Senegal (+8.5%).

Handbrake trust

In total, the Togolese microfinance added 600,000 new members to their customer base during the year. The number of customers thus reached 3.7 million customers at the end of December 2021. This continued confidence of Togolese savers was felt on deposits. The amount of deposits collected increased by 68 billion FCFA, an increase of 29.5%. However, savers remain circumspect in their exposure, preferring to resort to demand deposits.

At the WAMU scale, “Sight deposits are preponderant with a share of 57.3% of total deposits. Time deposits and other deposits constitute 21.1% and 21.6% respectively. In addition, the savings mobilized by the SFDs were made up to 48.7% by men, 26.9% by women and 24.4% by groups”, detailed the Central Bank. This trend seems the same in Togo.

Hundreds of service points

With regard to the number of service points, growth was also on the agenda. According to the BCEAO, the microfinance structures responded to the increase in activities by increasing the number of service points. There were at least more than 660 at the end of last year, up from around 518 a year earlier. That’s more than a hundred more service points.

Decrease in bad debts

After having exploded in 2020, due to the health crisis, the credits granted to Togolese customers and remained unreimbursed (bad debts) fell in 2021, from 14.7 billion FCFA to 12.5 billion FCFA. They now represent only 5% of outstanding loans compared to 8.3% in 2020.

With its 75 decentralized financial systems (DFS), Togo is one of the countries of the Union where the culture of microfinance is most deeply rooted. The country holds the second largest number of members behind Senegal and ahead of Côte d’Ivoire, despite the small size of its population. Assets in the sector crossed the CFAF 260 billion mark in 2020, making Togo the fourth-largest asset in WAMU.

Carriage E. Kakpo


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