Microfinance Sector in Cameroon accumulates an amount on over FCFA 258 Billion by way of deposits.

A sum amounting to over FCFA 258 billion has been accumulated by way of deposits from close to one million customers by the 460 microfinance institutions functional in Cameroon.

Ever since the first micro-financing institution was set up in the country in 1963 in the Northwest province the micro-financing sector has been moving steadily upwards offering the country more than FCFA 22 billion as capital, employment to over 15,000 people and loans that amount to more than FCFA 138.5 billion to offering worthwhile support to poor people who would not be eligible for traditional banking facilities.

Kumba Cameroon: Community Development Initiatives

The statistics for 2008 were presented by delegates who were attending a panel discussion that was arranged during the previous Thursday, February 24th at the Muna Foundation by the Club of Microfinance Institutions, MFIs, managers in synergy with the Association of Microfinance Institutions in Cameroon, ANEMCAM, based on the topic, “Do MFIs contribute to poverty reduction and the development of Cameroon?”

The discussions were essentially centered on the rise to power followed by the shocking collapse of a major microfinance institution, COFINEST, on February 22, and the tremors that it sent across the sector and the misconceptions that people voiced about how successful the microfinance sector would be and so on.

The organizers used the opportunity to the maximum extent possible to sensitize the public about how useful the sector could be and also teach them how they could approach micro-financing institutions to aid them in difficult situations.

The three sessions taken were typically concentrating on the effects of MFIs on fostering progress and development, the amount to be spent while availing microfinance services as well as factors that could support in enhancing the effects of MFIs.

The first to address the delegated was, Dr Justin Bomda, who opined that the recent economic crisis that the world was going through indicated the ever increasing relevance of the finance sector in every economy.

In developing countries, he said, where traditional banks are finding it unduly difficult to aid the major chunk of people in rural regions and under privileged categories, the role that can be undertaken by MFIs becomes extremely crucial.

The second speaker, Reverend Ombang Ekath, President of ANEMCAM, chose to talk about the hurdles faced MFIs such as ever increasing fiscal pressure, delays in getting back the money that has been offered as loans, insolvency of clients, poor governance, highly pathetic working conditions for some workers and staff who are not qualified enough to manage the job handled by them.

He also spoke about the various steps put in place by ANEMCAM to make the MFI sector clutter free comprising of ramping up capacity, orientation of clients and upwardly mobile reductions of loan annual interest rates. While detailing about the costs involved in the management of MFI services, he brought to special notice measure that had been out in place to set up a code of conduct for the sector and currently negotiating with government for a fiscal policy that is better tuned to the actual conditions in the sector. The next in agenda was a question and answer session which essentially focused on clarifications on the governance systems practiced in the MFI sector which is presently filled with illegal and fraudulent operators.

When questioned about the recent events associated with the fall of COFINEST, the speakers chose to refer to it as a one odd case amongst 460 and said that it does not change the image of the microfinance sector which has been indicating an upward trend ever since its inception in the country which according to Paul Banouga, the last speaker, could do a lot to promote development if certain steps were put in place to enhance on aspects of “governance, communication and administrative-judiciary procedures”.

cameroon-today