(Business in Cameroon) - In 2017, the volume of defaulted loans in Cameroon-based microfinance institutions’ portfolio was CFA106.4 billion. This was revealed on June 21, 2018, during the official launch of the Microfinance credit risk division (which should centralize information about loan requesters for better credit decisions) in Yaoundé.
Compared to microfinance institutions’ defaulted loans portfolio in the other countries of CEMAC, Cameroon’s was the worst in 2016.
Indeed, according to a report on financial stability in the Central African region, (published early this year by BEAC), by December 31, 2016, the defaulted loans within CEMAC was “CFA71.7 billion (ed.note : CFA35 billion less than Cameroon’s own in 2017), representing about 13.4% of the overall loans”. The report further explained that 79% of these defaulted loans were identified in Cameroon while 13% were in Gabon.
Let’s remind that the quality of Cameroonian microfinance institutions’ credit portfolio also indicates the dynamism of that sector in the country. Indeed, apart from being home to 523 out of the 829 institutions identified within CEMAC in 2016, Cameroon accounted for 65% of the loans granted within the community in the said period.
In addition, the figures published about the 2017 year confirm the importance of microfinance institution in Cameroon’s economy. In 2017, deposits in Cameroon’s microfinance institutions represented 16.6% of the overall deposits in the country while the loans granted by those institutions (which extend their services to rural zones usually ignored by classical banks) represented 13.9% of the overall loans granted in Cameroon.
Brice R. Mbodiam