(Business in Cameroon) - In Cameroon, the performance of microfinance institutions has been decreasing since the 2017 fiscal year but, in 2019, the trend changed slightly. This is revealed in the background note published, on April 1, by the Ministry of Finance in the framework of its coming three bond issuances.
At end-December 2019, the note informs, the total equity of the microfinance sector was XAF2,122.9 billion (representing 32.8% of commercial banks’ equity). Deposits stood at XAF90.09 billion (18.5% of deposits recorded by banks) and credits reached XAF839.14 billion (22.90% of the credits granted by banks by that period). Apart from the deposits, all the figures recorded in the sector were higher compared with the figures of the 2018 financial year.
According to the Ministry of Finance, between end-December 2017 and end-December 2018, the equity of microfinance institutions dropped from XAF816.40 billion to XAF708.50 billion (-XAF-107.80 billion). During that period, deposits recorded by those institutions dropped by 23.5%, from XAF668.20 billion to XAF514.20 billion (-XAF-154 billion). Credits granted by the microfinance institutions dropped by 17%, from XAF464.20 billion to XAF385.10 billion (-XAF-79.10 billion).
On December 31, 2019, 418 accredited microfinance institutions were operating in Cameroon. Of those institutions, 88.04 % were first-class (123 private and 245 organized as cooperative), 11.24 % were second-class (47 institutions) and 0.72 % third class.