Togo: Loans Granted by Microfinance Institutions Up 6.5% in Q4 2023, against Q3 2023

Wednesday, 08 May 2024 15:53
Togo: Loans Granted by Microfinance Institutions Up 6.5% in Q4 2023, against Q3 2023

(Togo First) - Recent data from the BCEAO reveals that the microfinance sector in West Africa, particularly in Togo, experienced growth by the end of December 2023, despite facing some headwinds.

Credit Portfolio Expansion

The outstanding loans granted by Decentralized Financial Systems (DFS) or microfinance institutions in Togo increased by 6.5% in the fourth quarter of 2023 (quarter-on-quarter), marking an absolute increase of 22.5 billion CFA francs. Togo recorded the third-largest increase during this period, behind Senegal (+6.6%) and Benin (+9.5%), and ahead of Burkina Faso (+21.4 billion CFA francs, +6.2%), Côte d'Ivoire (+16.1 billion CFA francs, +2.6%), and Guinea-Bissau (+525.0 million CFA francs, +1.1%). However, there was a decline in Niger (-1.2 billion CFA francs, -8.9%) and Mali (-478.8 million CFA francs, -0.2%).

At the UEMOA level, the outstanding loans increased by 125.3 billion CFA francs, with an average quarterly growth of 5.1%, reaching a total of 2,561.1 billion CFA francs.

Slight Increase in Deposits

On the deposit side, clients' deposits in microfinance institutions in Togo saw a slight increase of 0.5% (+1.8 billion CFA francs in absolute value). This modest growth contrasts with the overall decline in deposits collected by microfinance institutions across the Union. Deposits decreased by 8.8 billion CFA francs (-0.4%) compared to the previous quarter, totaling 2,263.8 billion CFA francs. This quarterly decline was observed particularly in Benin (-6.3%), Côte d'Ivoire (-0.9%), Burkina Faso (-1.2%), Mali (-1.6%), and Niger (-3.1%).

Moreover, as of December 2023, nine microfinance institutions were under provisional administration within the Union, including two in Togo.

Ayi Renaud Dossavi

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