Togo: Outstanding loans of microfinance lenders grew by 18.9% in Q1 2022, YoY

Economic governance

Friday, 26 August 2022 15:01

Togo: Outstanding loans of microfinance lenders grew by 18.9% in Q1 2022, YoY

(Togo First) - In Togo, outstanding loans granted by microfinance institutions (decentralized financial systems) rose by CFA38.3 billion in Q1 2022, compared to Q1 2021. The country recorded the second-largest increase in the West African Economic and Monetary Union (WAEMU), after Burkina Faso (+27.8%). This was disclosed in the latest report of the Central Bank of West African States (BCEAO in French) on microfinance’s state in the WAEMU.

By volume, Côte d’Ivoire was the country where microfinance loans were most granted in the region. Over the period reviewed, these loans shot up 17.7% or CFA73.33, YoY, the report indicates. Côte d’Ivoire is WAEMU’s economic powerhouse.

The results were achieved amidst a slowdown in lending by microfinance institutions in the WAEMU. The lenders usually lend smaller amounts in this period, having granted bigger amounts during the end-of-year holidays.

“Despite the slowdown during the quarter, the outstanding loans of the Union's DFSs were up by CFA268,327.1 million (+16.0%) compared to their level at the end of March 2021,” the BCEAO wrote in its report. Overall, the region’s DFSs loaned CFA1,946,765.4 million in Q1 2022.

Half (50.4%) of the loans these lenders gave out in the first three months of the year are short-term loans. Medium and long-term loans represented respectively 30.5% and 19.1% of the total reported. Men borrowed the most (54.3% of the loans provided went to them). Meanwhile, women and associations took respectively 20.6% and 25.1% of all microfinance loans granted in the WAEMU, in Q1 2022.

Deposits up by 20.4

In parallel to loans, deposits also grew. Across the WAEMU, they increased by CFA55.46 billion or 20.4% in Q1 2022, compared to the same period the year before.

Again, Côte d’Ivoire led with deposits in microfinance institutions growing by CFA100.43 billion. Burkina Faso came next (+CFA81.34 billion). Over Q1 2022, deposits made to the Union’s DFSs totaled CFA2,076.84 billion. Compared to Q1 2021, they were up 19.3% or around CFA336 billion.

Demand deposits made up 58.1% of the total amount deposited between January and March of this year. Time deposits and other deposits made up 21.0% and 20.9%, respectively. Also, men deposited 43.4% of all the money that was saved at microfinance institutions in the region, in Q1 2022. Women and associations contributed respectively 22.2% and 34.4% of the savings.

Written by: Ayi Renaud Dossavi

Translated from French by Schadrac Akinocho

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