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UEMOA lenders dish out CFA1,555-bln loans in 2019

The stock of credits allocated by the decentralized financial systems (SFD) of the West African Economic and Monetary Union (UEMOA) stood at CFA1,555.6 billion (about $2.488 billion) at the end of the fourth quarter of 2019, APA learned on Friday from the Central Bank of West African States (BCEAO).By Massamba Sall

According to the apex bank, this outstanding amount increased by 10 percent, compared to its level at the end of December 2018.

This increase is witnessed in Mali (+26.7 percent), Togo (18.3 percent), Cote d’Ivoire (+16.9 percent), Senegal (+5.0 percent), Burkina Faso (+4.6 percent) and Niger (1.4 percent). 

However, a decrease was noted in Guinea-Bissau (-29.1 percent) and Benin (-2.6 percent).

“A 50.0 percent share of outstanding loans from microfinance institutions is made up of short-term loans,” the BCEAO said. 

Medium and long-term loans represent 31.3 percent and 18.6 percent, respectively over the period under review. 

The male clientele of DFSs benefited from 57.6 percent of the loans. 

Female customers and groups benefitted 30.3 percent and 15.6 percent of funding respectively.

The average outstanding loan per beneficiary increased by 5.0 percent, to reach CFA106,893 at the end of December 2019, against CFA101,772 CFA a year earlier.

The Central Bank emphasizes that for the whole sector, outstanding loans represent 6.8 percent of the debts granted by the UEMOA credit institutions.

A review of the Union’s DFS intermediation indicators shows a development relatively favorable to financial inclusion, with a gross rate of portfolio degradation, which fell by one percentage point, coming out at 6.1 percent against 7.1 percent at the end of December 2018. 

The generally accepted standard in the UEMOA Area is 3 percent for the sector.

As for SFDs in difficulty, 16 microfinance institutions were under provisional administration at the end of December 2019, including seven in Benin, two in Burkina Faso, a similar number in Niger and Togo, one in Cote d’Ivoire, and the same number in Mali and Senegal.

Published on 28.04.2020

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