Private companies, Individuals, State...who were the banks’ favorite customers in 2020?

Monday, 25 October 2021 13:31
Private companies, Individuals, State...who were the banks’ favorite customers in 2020?

(Togo First) - The 13 banks active in Togo seem to be coping well against the Covid-19 pandemic which has spurred uncertainty in the country’s banking industry - an industry that was already facing many challenges.

Last year, these intermediaries lent a little over CFA615 billion to economic actors, pushing outstanding debt around CFA1,428, or somewhere above. This amount is 7% less than the amount loaned in 2019 - CFA62 billion. Also, the amount supplied in 2020 is the lowest since 2016, according to BCEAO data compiled by Togo First.

Who do banks lend to? 

In 2020, banks in Togo loaned mostly to companies in the production sector. Indeed these companies secured over 61% of bank loans disbursed that year; up about 3% compared to 2019 where they grabbed 55% of all loans the lenders gave out.

After private companies, individuals were the ones most backed by banks that operate in the country. They received CFA125 billion - 20% of the total portfolio - from the lenders in 2020. The sum is 6% down compared to 2019.

Meanwhile, banks were more reluctant than usual to lend to individual entrepreneurs. Last year, bank loans to these actors plummeted by 30% compared to the year before. Regardless, this segment remains in a tie with the State and its arms (public companies included).

However, the data available reflects an increase of loans to the government in 2020, even though banks tightened their lending terms.

An in-depth analysis

46% of the new loans provided by banks in 2020 - CFA285 billion - served to support the cash flow of businesses as they were struggling amidst the pandemic.

Regarding lending to back exports, while still very low, they bounced from CFA1.3 billion in 2019 to CFA1.6 billion in 2020; though borders were closed. The increase contrasts with 2018’s dip (CFA100 million). As for consumer loans, in 2020 they stood at CFA114 billion which is more than 18% of the total sum loaned by banks over the period.

Fiacre E. Kakpo

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