Quarterly Microfinance Outlook October

Transcription

Quarterly Microfinance Outlook
October - December 2010
SUMMARY
SUMMARY ............................................................................................................................ 3
LIST OF ACRONYMS AND ABREVIATIONS .................................................................. 4
LIST OF TABLES .................................................................................................................. 5
LIST OF GRAPHS ................................................................................................................ 6
FOREWORD ......................................................................................................................... 7
INTRODUCTION ................................................................................................................. 8
1.
2.
GENERAL INFORMATION ..................................................................................... 9
1.1.
The legal environment ...................................................................................... 9
1.2.
Practise licences per category .......................................................................... 10
1.3.
Evolution of borrowers ................................................................................ 11
1.4.
Evolution of the permanent staff ................................................................. 12
FINANCIAL TRANSACTIONS ............................................................................. 13
2.1.
Evolution of deposits ..................................................................................... 14
2.1.1. Evolution of depositors .................................................................................. 14
2.1.2. Evolution of the amount of deposits ............................................................ 15
2.2.
Evolution of loans .................................................................................................. 16
2.2.1. Number of loans beneficiaries ..................................................................... 16
2.2.2. Amount of loan granted by DFIs ............................................................... 17
2.2.3. Average amount per loan ............................................................................ 18
2.2.4. Evolution of the gross outstanding loans .................................................. 19
2.2.5. Outstanding debts .......................................................................................... 21
2.2.6. Rates of loans reimbursement ...................................................................... 23
CONCLUSION ..................................................................................................................... 25
ANNEX .............................................................................................................................. 26
3
LIST OF ACRONYMS AND ABREVIATIONS
APHEDD
:
Association of human Promotion and Environmental protection for a
Sustainable Development (Association pour la Promotion de l’Homme
et la protection de l’Environnement pour un Développement Durable)
AssEF
:
Women Association for Mutual aid (Association d’Entraide des Femmes)
CBEC
:
Beninese Savings and Credit Union (Caisse Béninoise d’Epargne et de
Crédit)
CPEC
:
Cooperative for Promoting Savings and Credit (Coopérative pour la
Promotion de l’Epargne et du Crédit)
CSSFD
:
Supervisory Unit of Decentralized Financial Structures
FECECAM
:
Federation of Mutual Agricultural Savings and Credit Cooperatives
(Fédération des Caisses d’Epargne et de Crédit Agricole Mutuel)
FINADEV SA
:
Financial Development SA
ID
:
Initiative Développement
MFI
:
Microfinance Institution
MCEC
:
Savings and Credit Unions and Cooperatives (Mutuelles et Coopératives
d’Epargne et de Crédit)
MC
:
Christian Savings and Credit Union (Mutualité Chrétienne)
MCA-BENIN
:
Millennium Challenge Account-Benin
MEF
:
Ministry of Economy and Finance (Ministère de l’Economie et des
Finances)
QRMS
:
Quarterly Report on the Microfinance Situation
NGO
:
Non Governmental Organization
PADME
:
Association for Promoting and Supporting the Development of Micro
Enterprises (Association pour la Promotion et l’Appui au Développement
des Micro Entreprises)
PAPME
:
Agency for Promoting and Supporting Small and Medium size Firms
(Agence pour la Promotion et l’Appui aux Petites et Moyennes Entreprises)
SA
:
Corporation (Société Anonyme)
DFS
:
Decentralized Financial Structure
DFI
:
Decentralized Financial Institution
4
LIST OF TABLES
Table 1 : Number of licenses issued as at December 31st, 2010 .................................................... 20
Table 2 : Number of DFIs authorized as at December 31st, 2010 ................................................ 22
Table 3 : Evolution of the DFIs’ Clients (July-09 to Dec-10) …............................................... 23
Table 4 : Quarterly number of permanent staff (July-09 to Dec-10) ........................................ 24
Table 5 : Quarterly change in the number of depositors (July-09 to Dec-10) ........................ 27
Table 6 : Quarterly change in the number of loan beneficiaries (July-09 to Dec-10) ........... 28
Table 7 : Quarterly change in the amount of loans granted by DFIs (July-09 to Dec-10) ....... 29
Table 8 : Quarterly change in average amount per loan (July-09 to Dec-10) ........................ 31
Table 9 : Quarterly gross loan (July-09 to Dec-10) .................................................................. 32
Table 10 : Quarterly change in outstanding loans (July-09 to Dec-10) .................................... 33
5
LIST OF GRAPHS
Figure n° 1 : Evolution of the number of DFIs’ depositors in the fourth quarter of 2010 .................. 14
Figure n° 2 : Evolution of deposits collected by all MFIs in millions FCFA ....................................... 16
Figure n° 3 : Evolution of the volume of loans granted by type of DFIs
(July-09 to Dec-10 million FCFA) .............................................................................. 18
Figure n° 4 : Evolution of the quarterly gross outstanding loan in million FCFA
(juil-09. to Dec-10) ...................................................................................................... 21
Figure n° 5 : Quarterly evolution of outstanding debts (Jan-June-10) ............................................ 22
Figure n°6 : Quarterly evolution of the rate of outstanding debts (July-09 to Dec-10) ................... 23
6
FOREWORD
Microfinance has become an essential tool in the implementation of
strategies to eradicate poverty in Africa and in the world. The financial
micro-services are accompanying elements for growth and boosting the
local economy and individual activity.
The Decentralized Financial Institutions (DFIs) focused on poverty can
improve their efficiency by reducing financial exclusion, unemployment
and therefore constitute a reduction of poverty. The provision of financial services to vulnerable
strata of the society is vital to break the vicious cycle of poverty, since it lead for an increasing
of employment, income, consumption and the power of those low income people. Financial
services enables vulnerable households to improve their living conditions and access to
new kinds of resources (large amount) through special mechanisms. The grant of increasing
loan amounts in accordance with the request of the borrowers shows that DFSs starts to be
successfull as their success is closely linked to their clients well being.
Therefore, there is a need that to improve the DFIs products in order to gain a marginal social
impact.
A growing number of low-income people now have access to a range of more extensive
financial products. Some funding models have largely proven successful and spread rapidly.
The CSSFD through this issue, once again thanks the various industry partners who support
and encourage the publication of the newsletter, especially the MCA-Benin and the DFIs,
without whom this work would have not been possible.
Louis BIAO
Acting Coordinator
7
INTRODUCTION
M
icrofinance is a community finance oriented towards the economically active
population excluded from traditional banking system. It contributes alongside the other
instruments for reducing poverty to improve the national economy.
In Benin, the microfinance sector is made up of forty-seven (47) Decentralized Financial
Institutions (DFIs), operating through two hundred and twenty to three (223) representations.
The legal status of MFIs in Benin is made of three (03) great categories which are: the Savings
and Credit Mutuals and Cooperatives (MCEC), Direct Credit Institutions and Loan component
Institutions.
In 2010, the financial intermediation activity experienced a crisis which although mastered by
the measures adopted by the government for the closure and freezing of assets of these illegal
deposits collection institutions impacted the financial sector in general and especially Benin
microfinance.
In this context, the aims of the CSSFD through this issue of the quarterly newsletter is to show
the outlook of the sector by the interpretation of some indicators contained in the DFIs statistics
and other activity indicators for remediation and monitoring sector. It gives stakeholders the
prowesses and declines performed by the Decentralized Financial Institutions (DFIs) in the
fourth quarter of 2010.
It also provides information on the existing legal framework in Benin and the new instructions
of the BCEAO as at December 2010, relating to the implementation of the new legal framework
for MFIs in the WAEMU member countries awaiting adoption in Benin.
The data compiled and analyzed are those of the quarterly statistics provided by the DFIs that
have received authorization from the Minister of Economy and Finances (MEF).
8
1.
GENERAL INFORMATION
This section provides information on the new legal framework for DFS, the state of the
formalization in the microfinance industry and analyzes the evolution of the number of
customers, the penetration rate and the employment situation in the last quarter.
1.1.
The legal environment
At the end of the quarter under review, several orders were made by the BCEAO and came
into force in the microfinance sector in Benin and in the WAEMU sub-region. These are the
instructions:
- N°. 016-12-2010 on the financing of fixed assets and investments by the DFIs;
- N°. 017-12-2010, related to the organization of internal control within the DFIs;
- N°. 018-12-2010, relating to the requirement for DFIs to produce an annual report;
- N°. 019-12-2010, concerning the establishment of a security or solidarity fund within
institutions networks of savings and credit mutuals or cooperatives;
- N°. 020-12-2010, related to the quarterly indicators submission by the DFIs to the
Minister in charge of finance, the BCEAO and the WAEMU Banking Commission;
- N°. 021-12-2010, defining type of DFIs allowed to use the light version of GAAP.
These instructions issued by the BCEAO in December 2010 are expected to be applied from
January 1, 2011 to strengthen the legal environment governing the activities of decentralized
finance. In the same context, some of the OHADA Uniform Acts, including those applicable in
the financial sector have undergone a review in December 2010. These include:
- The Uniform Act on the right of cooperatives;
- The Uniform Act organizing securities.
These provisions are now legally applicable although the process of approval and promulgation
of the new legal framework has not yet enacted.
9
1.2.
Practise licences per category
There is a difference between the number of DFIs authorized and the number of licenses issued;
this situation needs to be clarified. Indeed, we must recall that the DFIs under convertion must
proceed to the renewal of their convertion (autorization) every five years (Art.7 of the Act) and
the DFI organized in a network are required to request and obtain a license for all their based
structures affiliated (Art 38, 41, 44, 46).
Therefore, the renewal of an agreement means an increase in the number of licenses without
change in the number of authorized DFIs. Also when a central organization gains recognition
for one of its core branch, it increases the number of authorization issued by the Minister of
finance without impacting the number of authorized DFIs.
Table 1 : Number of licenses issued as at December 31, 2010
Number of licenses
Years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total
Number of Agreement signed
2
0
2
0
2
0
1
0
0
1
8
1
17
Number of granted agreements (
including the central organizations
agreements)
4
0
75
61
23
17
12
2
3
6
0
3
206
Total
6
0
77
61
25
17
13
2
3
7
8
4
223
Total of granted licenses
6
6
83
144
169
186
199
201
204
211
219
223
Source : CSSFD Data base
The first table shows the number of licenses issued by the Minister of finance since 1999 which
is 223 as at December 31, 2010 while the second shows that the number of DFIs approved
since 1999 is 47 on the same date. During the fourth quarter, the Minister of finance has issued
four (04) licenses in microfinance activity to community funds non-affiliated to a network with
one (01) association and three (03) Savings and Credit Mutuals or Cooperatives.
10
Table 2 : Number of authorized DFIs as at December 31, 2010
Years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total
2
0
2
0
2
0
1
0
0
1
8
1
17
Associations (including the CVECAs) (a1)
2
0
1
0
2
0
1
0
0
1
8
1
16
Private companies (SA et SARL) (a2)
0
0
1
0
0
0
0
0
0
0
0
0
1
4
0
6
2
2
2
0
2
3
6
0
3
30
Confederations* (b1)
0
0
0
0
0
0
0
0
0
0
0
0
0
Federations*(b2)
1
0
0
0
0
0
0
0
0
0
0
0
1
Unions* (b3)
0
0
1
0
0
0
0
0
1
0
0
0
2
3
0
5
2
2
2
0
2
2
6
0
3
27
0
0
69
56
20
14
11
0
0
0
0
0
170
3
0
74
58
22
16
11
2
2
6
0
3
197
6
6
14 16 20 22 23 25 28 35 43 47
Number of DFIs under agreements (a=a1+a2)
Number of Mutuals and Cooperatives (b =
b1+b2+b3+b4)
Mutuals
or
cooperatives non-affiliated
to
network-Unitary Funds - (b4)
PM : Number of grassroots funds affiliated
to network (b5)y
PM : Total number of grassroots funds (b4+b5)
Total (a+b)
1.3.
Evolution of customers
The growth recorded in the second and third quarters reflecting the recovery in financial
intermediation activities with an increase in the quarterly growth rate in the number of clients
of MFIs by 6.5% and 6.9% is fully amortized at the end of December 2010 to give a negative
fluctuation of 8.6% or 1,439,096 against 1,574,287 customers in September 2010.
11
Table 3 : Evolution of the DFI customers (July-09 to Dec-10)
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
MCEC
966 182
980 482
989 740
1 053 131
1 093 215
913 702
DIRECT CREDIT
274 073
283 795
282 218
300 136
349 764
387 175
99 681
110 121
110 352
118 839
131 308
138 219
1 339 936
1 374 398
1 382 310
1 472 106
1 574 287
1 439 096
0.6%
6.5%
6.9%
CREDIT BATCH CREDIT
ALL THE DFIs
Fluctuation
2.6%
-8.6%
4.7%
Annual drift
The clientele of MFIs has experienced an annual growth of 64,698 from 1,374,398 in December
2009 to 1,439,096 in December 2010. A growth which corresponds to an annual change of
4.7% at as December 2010.
This growth is attributable to the dynamism of the services offered by MFIs to their clients.
It must be noted that the DFIs’ direct credit customers and microfinance component projects
have experienced an annual growth of respectively 103,380 and 28,098 customers bringing
their respective drift to 36.43% and 25.52%. This enabled strong evidence of awareness and
customer satisfaction of these two forms of institution. Conversely, the opposite phenomenon is
observed at the level of savings and credit mutuals or cooperatives, which recorded a decrease
of 66,780 customers. What is a negative annual drift of 6.81% as at December 2010.
1.4.
Evolution of the permanent staff
Employment generated by the DFIs in Benin grew recorded a growth in the annual drift by
17.2% representing the recruitment of 350 new employees in customer service for these
institutions. At the end of December 2010, the total staff of DFI is 2383 against 2033.
The table below shows the number of employees in the sector has experienced 17.2% as at
December 2009.
12
Table 4 : Quarterly number of permanent staff (July-09 to Dec-10)
juil-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
1 072
1 136
1 260
1 354
1 393
1 257
DIRECT CREDIT
872
827
827
812
819
905
CREDIT BATCH CREDIT
95
70
121
165
186
221
2 039
2 033
2 208
2 331
2 398
2 383
-0.3%
8.6%
5.6%
2.9%
-0.6%
(in millions FCFA)
MCEC
ALL THE DFIs
Fluctuation
Annual drift
17,2%
It must be stressed that the 2.9% growth of the previous quarter fell slightly by 0.63% in the
fourth quarter of 2010 and reached 2,383 jobs distributed among the three (03) categories of
DFIs. However, an increase in the figures is noted in some categories. So, 905 jobs as assets
for direct credit DFIs by a drift of 10.50% and was 221 assigned to microfinance component
projects representing 18.82%. These efforts have been reduced by the poor performance of
Savings and credit mutuals and cooperatives whose annual drift is negative by 9.76%. This
downward trend noted at the MCEC is attributable to relief and multiple reforms mesures inside
the largest mutual network in Benin, FECECAM with the reduction of its former principal or
secondary branches.
2.
FINANCIAL TRANSACTIONS
This section is dedicated to the analysis of financial operations performance indicators of thirtyseven (37) MFIs operating in the financial sector in Benin and has regularly sent quarterly
statistics after their first year of operation. Indicators for deposits collected and loan portfolio
will be reviewed.
13
2.1.
Evolution of deposits
This is the section reserved for the presentation of the quarterly changes in the number of
depositors and the amount of deposits.
2.1.1. Evolution of depositors
Statistics of the fourth quarter of 2010 show that the number of applicants fell by -8.3%
compared to the previous quarter. The annual drift as at December 2010 was up to 17.5%. This
rate brings the number of depositors at the end of this period to 1,473,095.
The graph of the evolution of the number of depositors in the sector between September 2009
and December 2010, posted on its portion of a 2010 a peak in the third quarter for a total of
1,605,497 depositors.
It should be emphasized that growth began in the first quarter of 2010 remained strong through
the third quarter. The number of depositors increased from 1,276,680 in January to 1,605,497
in September 2010, then fell by 8.2% in the quarter under review.
Figure n° 1 : Evolution of the number of DFIs’ depositors in the fourth quarter of 2010
14
Table 5 : Quarterly change in the number of depositors (July-09 to Dec-10)
MCEC
DIRECT CREDIT
CREDIT BATCH CREDIT
ALL THE DFIs
Fluctuation
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
862 923
220 287
86 212
1 169 422
910 403
252 404
91 388
1 254 195
925 455
255 337
95 888
1 276 680
1 177 793
272 745
111 790
1 562 328
1 210 612
271 646
123 239
1 605 497
7.2%
1.8%
22.4%
2.8%
Annual drift
1 027 089
312 104
133 902
1 473 095
-8.2%
17.5%
2.1.2. Evolution of the amount of deposits
The deposits are the second source of income for savings and credit mutuals and cooperatives.
The transformation rate credit allowed is 80% under Article 54 of Order No. 98-60 of February
9, 1998.
The amount of deposits collected by all the DFIs sector is 57.678 million in December 2010.
Against 59.217 million as at September 2010. Only the direct credits DFIs have recorded a
positive variation of 21.3% for the period under review. However, this performance is not
sufficient to reverse the dissaving of the users of Savings and Credit Mutual and Cooperatives
(-6.9%) as well as NGOs and Microfinance Component Projects (-4.5 %). In annual drift as at
December 2010, the savings collected by the DFIs increased by 8.3%.
15
Figure n° 2 : Evolution of deposits collected by all MFIs in millions FCFA
2.2.
Evolution of Loans
This section is devoted to analyzing the performance of the DFIs through some indicators
including the number of beneficiaries of loan, outstanding loan, the volume of loans granted,
the average amount per loan, outstanding debts, the reimbursement rates and recovery rates.
2.2.1. Number of Loans beneficiaries
The number of DFIs loan beneficiaries edged up 0.4% between the third and fourth quarter
of 2010. This variation corresponds to the entry in the DFIs of 709 new customers in the
economically active credit portfolio in the industry.
The period reviewed has recorded in terms of annual drift as at December 2010 a decrease of
-2.9%, from 204,334 recipients in December 2009 to 198,345 in December 2010. The number
of direct credit DFIs has evolved of 18.90% to the increase in the acceptance of 23,892 new
borrowers followed by the savings and credit mutuals and cooperatives and loan component
projects, respectively by, -33.3% and -56.9%.
The decline since the third quarter of 2010 was linked to the introduction of new provisions for
a more rigorous application of new funds to fight against the dishonest borrowers.
16
Table 6 : Quarterly change in the number of loan beneficiaries (July-09 to Dec-10)
jul-09
oct-09
janv10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
MCEC
50 284
61 312
38 168
62 550
46 432
40 869
DIRECT CREDIT
114 289
126 435
120 456
125 835
143 255
150 327
CREDIT BATCH CREDIT
13 869
16 587
12 480
10 897
7 949
7 149
ALL THE DFIs
178 442
204 334
171 104
199 282
197 636
198 345
14.5%
-16.3%
16.5%
-0.8%
0.4%
Fluctuation
-2.9%
Annual drift
Source : CSSFD Database
2.2.2. Amount of loan granted by DFIs
The period of December 2010 grew by 26.7% representing 42,204,000 million of loans granted
against 33,307,000 in the previous quarter. The annual drift of 11.6% achieved in December
2010 confirms the recovery of economic activities.
Table 7 : Quarterly change in the amount of loans granted by DFIs (July-09 to Dec-10)
(in millions FCFA)
MCEC
DIRECT CREDIT
CREDIT BATCH CREDIT
ALL THE DFIs
Fluctuation
Annual drift
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
9031
17660
1376
28067
13948
22350
1534
37832
8264
16703
1418
26385
14893
19431
1426
35751
10200
21348
1760,0
33307
14048
26585
1571
42204
34.8%
-30.3%
35.5%
-6.8%
26.7%
11.6%
Note that the analysis of the indicator through the figure hereafter, reported that direct credit
institutions are positioned in the frontline with 5.237 million loan, followed by the savings
and credit mutuals and cooperatives up to 3.848 million. NGOs and microfinance component
17
projects come in last place with a decrease of -189 000 000..
Figure n°3 : Evolution of the volume of loans granted by type of DFIs (July-09 to Dec-10
million FCFA).
2.2.3. Average Amount per Loan
The table below shows the evolution of the average loan per borrower.
Table 8 : Quarterly evolution in average amount per loan (July-09 to Dec-10)
(in FCFA)
Amount of average loan per borrower
Fluctuation
Annual Drift
18
jul-09
oct-09
jan-10
avr-10
juil-10
oct-10
sept-09
dec-09
mars-10
juin-10
sept-10
déc-10
157 289
185 147
17.7%
154 202
-16.7%
179 397
16.3%
14.9%
168 529
-6.1%
212 780
26.3%
The ratio is the comparison of the total loans granted to the total number of loans. This indicator
provides information on the one hand the ability of an institution to save money and on the
other hand information on the economic level of the greater number of the institution’ target.
The goal of microfinance is to make available to economically active workers and rejected by
the conventional financial system, basic financial services. This mission implies the presence
of low-income populations in the loan portfolio of DFIs and therefore, the average amount per
loan low enough and tailored to the needs of this target.
The average amount per loan has evolved by jerks and jumps from July 2009 to December
2010. In the last quarter of 2010, the average ratio of loan is 212,780 CFA francs, up 26.3%
from the previous quarter. The quarterly change is the most important of the period, to an
average of 7.5% and an annual drift as at December 2010 estimated at 14.9%. This trend shows
that the DFIs offer huge amount of loans and denotes a certain distance from DFIs’ original
target. The goal of reducing loans management costs focused on by the DFIs deviates from
the mission of poverty reduction by targeting the poor advocated by stakeholders including
promoters, donors and government.
2.2.4. Evolution of the gross outstanding loans
Outstanding loans determine the volume of credits and outstanding non-reimbursed debts held
by the DFI’ borrowers. It provides information on the financial input of the institutions to the
functioning of the economy reducing thereof poverty.
19
Table 9 : Quarterly gross outstanding loans (July-09 to Dec-10)
(in millions FCFA)
MCEC
DIRECT CREDIT
CREDIT BATCH CREDIT
ALL THE DFIs
Fluctuation
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
26 591
30 997
3 328
60 916
33 330
35 219
3 698
72 246
18.6%
Annual drift
34 222
23 539
4 044
61 805
-14.5%
36 152
33 845
4 296
74 293
20.2%
38 575
34 580
4 753
77 908
4.9%
37 702
40 493
4 742
82 937
6.5%
14.8%
During the period under review, the gross outstanding loans ranged from 6.5% upwards
compared to the previous period. The rise of the gross loan reflects the resumption of commercial
activities in the second quarter of 2010 after the fall of -14.5% at the beginning of the year.
The gross loan ranged from 72,246,000 to 82,937,000 between December 2009 and December
2010 corresponding to a 14.8% annual drift of rise. During 2010, the gross loan of direct credit
institutions has been expanded (5,274,000) taking over that of the MCEC (4,372) in front of
the credit component DFIs (1044000).
20
Figure n° 4 : Evolution of the quarterly gross outstanding loan in million FCFA (juil-09. to
Dec-10)
2.2.5. Outstanding debts
During the period under review, the outstanding debts have trended upward to reach a threshold
of 8.4% from the amount of 3,990 million FCFA in the third quarter to an amount of 4.326
million CFA francs in the fourth quarter of 2010. .
Table 10 : Quarterly evolution in nonperforming loans (July-09 to Dec-10)
(en millions FCFA)
MCEC
DIRECT CREDIT
CREDIT BATCH CREDIT
ALL THE DFIs
Fluctuation
Annual drift
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
1956
1443
175
3574
1085
1599
231
2915
-18.4%
933
1341
288
2563
-12.1%
1209
1925
303
3438
34.1%
1302
2374
315
3990
16.1%
1290
2672
363
4326
8.4%
48.4%
21
The annual drift in the month of December 2010 shows a rate of 48.40% in continuous progress
on the three (03) quarters of 2010. This increase observed since the end of the first quarter
reflects a continued deterioration of the loan portfolio of all DFIs.
Figure n° 5 : Quarterly evolution of outstanding debts (Jan-June-10)
Concerns about the increase in the amount of outstanding debts are backed by the rise of
outstanding debt rate to 5.5% in the fourth quarter of 2010 against 4.2% in the first quarter
of that year. The overrun of the basic accepted standard of 0.5 points in the microfinance
sector shows a poor performance in the sector. The portfolio of savings and credit mutuals or
cooperatives meets the standard and is 3.5% while the direct credit DFIs and credit component
projects have crossed the 5%, respectively, 2.1 and 3.3 point for values of 7.1% and 8.3%.
22
Figure n° 6 : Quarterly evolution of the rate of outstanding debts (July-09 to Dec-10)
2.2.6. Rates of loans reimbursement
The third quarter was characterized by a high rate of loan repayment by borrowers of all DFI,
estimated at 91.8% with a quarterly change of 7.9% over the previous quarter. The annual drift
as at December 2010 of this rate is 0.4%.
NGOs and loan component projects showed 97.9% repayment of their due loan portfolios.
A rate that puts this group of DFIs in first place followed by the direct credit institutions to
a 90.9% rate. The lowest rate for the quarter was 86.6% recorded by the savings and credit
mutuals and cooperatives.
23
Table 11 : Quarterly evolution of the reimbursement rate (July-09 to Dec-10)
(in millions FCFA)
MCEC
DIRECT CREDIT
CREDIT BATCH CREDIT
ALL THE DFIs
Fluctuation
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
sept-09
dec-09
mar-10
jun-10
sept-10
dec-10
85.7%
92.1%
94.0%
90.6%
85.7%
93.7%
94.9%
91.4%
90.8%
87.0%
95.2%
91.0%
90.8%
85.5%
95.6%
90.6%
86.6%
87.7%
80.8%
85.0%
86.6%
90.9%
97.9%
91.8%
0.9%
-0.5%
-0.4%
-6.1%
7.9%
Annual drift
0.4%
Source : Base de données CSSFD
The repayment rate of the microfinance sector grew by 6.7 points between September and
December 2010. It went from 85.0% to 91.8%.
24
CONCLUSION
D
uring the period under review, it is observed an evolution of mixed indicators of the
sector that reflects the disruption experienced by the business environment during 2010. While
deposits recorded a downward trend, there is a resurgence of release of funds in a context
where the level of outstanding debt is experiencing a gradual increase to exceed the accepted
standard of 5%. This situation that characterizes disturbances related to the crisis of illegal
money placement institutions at the same time denotes disturbances related to preparations of
presidential elections scheduled for March 2011. It should be remembered that the slowdown
of economic activities impact negatively on the loans’ repayment.
The risk of the sector on the gross outstanding loan is based on direct credit institutions that
hold more than 80% of the loan portfolio.
Indirectly, the direct credit DFIs have collected in the form of prior savings before granting
loan for almost 40% of the deposits of the year which places them second line only behind the
52% recorded by the MCEC. The rate of outstanding debt as noted in the sector is recorded by
the category of microfinance component projects and NGOs (8.3%).
Despite the crisis, the sector in its dynamics could ever find the resources of its regeneration
and continue its walk towards sustainability and poverty reduction through the ongoing actions
of the different stakeholders involved.
25
ANNEX
26
ANNEXE-1
ANNEXE-2
ANNEXE-3
EDITORIAL, EDITION AND READING STAFF
COORDINATION
EDITION
Louis BIAO
Janvier Nonfodji AHOUANSOU
(Acting Coordinator of the Unit of
(Programmer Keyborder / SSI)
Supervision of the Decentralized Financial
[email protected]
Institutions ) - [email protected]
READING TEAM
SUPERVISOR
Leslie F. H. HOUESSOU
Stanislas E. d’ALMEIDA
BACO Awaou épse BABA-MOUSSA
(Statistics and ICTs Officer)
Chédrack YELOUASSI
[email protected]
Serge B. EGNONSE KADOSSOSSI
Janvier Nonfodji AHOUANSOU
EDITOR
Romuald DJOÏ
Roméo S. ZOMAHOUN TCHALA
Jacques ATCHEDE
(Statisticien / SSI) - [email protected]
Benoît DJOSSOU.
EDITORIAL STAFF
TRANSLATION
Chédrack YELOUASSI
Christophe DJOSSOU
(Statistican / SSI) - [email protected]
Financed by MCA - Benin
GRAPHIC DESIGNER
Serge B. EGNONSE KADOSSOSSI
(Systems Analyst / SSI)
[email protected]
30

Quarterly Microfinance Outlook October

Transcription

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