III.1.2- Overview of microfinance in Cameroon
In Cameroon, studies on the efficiency of microfinance
institutions in poverty reduction are relatively scarce. Monkam et al (2001)
show, through financial ratios that MFIs are sustainable even if the cost of
money remains expensive. However, this study emphasizes the financial aspect at
the expense of the original objectives of MFIs that are consistent with the
accessibility of financial services to poor and their role in the fight against
poverty as formulated in the PRSP.
10 Matin et al. (1999:6) refer to the
role of financial services in meeting these needs as a protective role (to help
cope with risks) and a promotional role (to provide a return).
25
Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
Similarly, Djeuda & Heidhues (2005) are simulations of
growth M (Community Growth Mutual Funds) using a Cobb - Douglas model in the
analysis of cost behaviour. But the study is only interested in the growth of
the structure while the question of whether the granting of credit to the poor
is effective. However despite this lack of research focused specifically on the
effectiveness of MFIs, there are studies that propose a descriptive inventory
of the supply by MFIs. This inventory shows that the supply by MFIs in Cameroon
relates generally to savings, credit, and remittances. This offer is provided
by three categories of MFIs described by Creusot (2006):
? The first category consists of MFIs who deal only with their
members. These are cooperatives, associations;
? The second comprises MFIs that provide financial services to
third parties. They have the status of limited company;
? The third is composed of MFIs that offer credit and are not
allowed to mobilize savings. Moreover, with the deposits amounting to 300
billion and outstanding loans standing at 200 billion at the end of December
2010, the microfinace sector has a customer base of about 1.2 million clients.
In 30 June 2011, out of 480 approved MFI, close to fifty were under
liquidation, suspension of activities, adjustment and/or temporary
administration. In a bid to strengthen financial reporting, COBAC accelerated
the putting in place of the «Microfinance Activity Evaluation and
Supervision System» (SESAME)
whose accounting component entered into force in June 2010.
The microfinance sector employs about 6000 workers of which 732 senior staff
and has six principal approved networks namely: CAMCCUL (about 177 MFI),
CVECA(41), CMEC(27) and M. Another network, MUCADEC is being approved.
There are 386 MFI under category I, 43 under category 2 and 4
under category 3. Category 2 MFI occupied the leading position in terms of
geographic coverage and market share. They accounted for more than half of
deposits and loans.
Table 1: Distribution of approved
MFIs
|
Region
|
Independent MFIs
|
Network MFIs
|
Total
|
|
Adamawa
|
04
|
05
|
09
|
|
Centre
|
62
|
40
|
102
|
|
East
|
03
|
0
|
03
|
26
Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
|
Far north
|
03
|
18
|
21
|
|
Littoral
|
58
|
18
|
76
|
|
North
|
03
|
09
|
12
|
|
North west
|
07
|
70
|
77
|
|
West
|
35
|
36
|
71
|
|
South
|
05
|
04
|
09
|
|
South west
|
09
|
44
|
53
|
|
Total
|
189
|
244
|
433
|
Source: COBAC, MINFI
At the end of 2010, about twenty MFIs had a volume of deposits
above one million, half of which are under category 2. Regarding network MFI,
CAMCCUL collected deposits of more than 85.4 billion. As concern independent
MFI, Crédit Communautaire d'Afrique collected 66.5 billion.
Loans were mainly short-term (63%) and medium-term (34%). The bulk of loans
where granted for trade (39%) and consumption (27%). In terms of market share,
with close to 57.3 billion, CAMCCUL accounted for more than one-quarter of
loans.
Interest rate remained quite high despite stiff competition in
the sector. Debit rate were between 4% and 30% per year for an average
intermediation margin of 17%. Interest rates in the microfinance sector ranged
from 6% to 33% for interest expenses and from 1% to 10% for interest income.
Regarding prudential ratio, out of a sample of 50 MFI, half of them complied
with the liquidity, risk coverage and fixed assets coverage ratios. Only some
ten MFI had sufficient own funds.
Number of MFIs per region
Adamawa Centre East Far north Littoral
North North west West South South west
3% 5%
2%
18%
33%
4%
2%
1%
31%
1%
Figure1: Number of MFIs per region
27
Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
Table2: Aggregate balance sheet of MFIs on 31
December 2010
|
Liabilities
|
Amounts (million fcfa)
|
Assets
|
Amounts (million fcfa)
|
|
Capital
|
42
|
283
|
Fixed assets
|
44
|
802
|
|
Shares
|
38
|
902
|
Loans
|
221
|
378
|
|
Fixed deposits
|
373
|
872
|
Others
|
39
|
397
|
|
Others
|
35
|
870
|
Cash
|
152
|
786
|
|
Cash
|
6
|
338
|
|
|
|
|
Total
|
458
|
363
|
Total
|
458
|
363
|
Source: COBAC
The total aggregated balance sheet of MFIs in Cameroon at the
end of December 2010 is established at FCFA 458,363 billion. It represents
15.7% of total assets of commercial banks in the same date. 80% of the main
activities of microfinance sector are covered by MFIs of first category. The
most important structures are CAMCCUL network and Crédit
Communautaire d'Afrique (CCA), with respectively 70,081 and 119,211
billion of total assets at the end of 2010.
The financial intermediation operations are important in the
balance sheet structure and reinforce the activities of this sector. Deposits
collected, represent an amount of FCFA 373,872 billion and correspond to 81.5%
of the total aggregated balance sheet. They represent 15.5% of total deposits
collected by commercial banks in Cameroon. They are largely from CAMCCUL
network (95.85 billion), CCA (65,656 billion) and COMECI (17,575 billion).
However, the cash outstanding loans are estimated at FCFA 223,563 billion, or
49% of consolidated total assets. Based on the level of lending by commercial
banks, they represent approximately 15.7%.
Net cash microfinance is lending of FCFA 146,448 billion on
31st December 2010. It is usually held in the form of cash in hand, deposits
held at call with local correspondents and, accessorily, in the form of
investments in certificates of deposit or government bonds. Thus, it highlights
the problem of the management of cash surplus in Cameroon MFIs.
28
Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
Table3: evolution of microfinance activities in
Cameroon from 2002 to 2010.
|
Years
|
Issued capit*
|
Fixed deposit*
|
Gross loan*
|
Number of MFI
|
Member/clients /number
|
Countrs number
|
1st cat MFI
|
2nd cat MFI
|
3rd cat MFI
|
|
2002
|
6781
|
66727
|
44748
|
601
|
331006
|
695
|
587
|
14
|
0
|
|
2003
|
9501
|
55769
|
56077
|
301
|
462585
|
749
|
582
|
19
|
0
|
|
2004
|
13666
|
98743
|
65402
|
567
|
541980
|
756
|
532
|
35
|
0
|
|
2005
|
16974
|
116840
|
70795
|
453
|
460706
|
879
|
404
|
35
|
0
|
|
2006
|
19887
|
162427
|
104173
|
453
|
849030
|
1052
|
418
|
35
|
0
|
|
2007
|
25323
|
194830
|
117233
|
460
|
962627
|
1111
|
420
|
38
|
2
|
|
2008
|
22.23
|
258220
|
138523
|
470
|
1073621
|
983
|
420
|
38
|
2
|
|
2010
|
42.283
|
373872
|
221378
|
490
|
/
|
/
|
442
|
44
|
4
|
Source: COBAC, *FCFA million
| 
