The Ministry in charge of Microfinance intends to facilitate access to financial services for all, through the Microfinance Industry Development Program.
To do this, under the aegis of the General Directorate of Microfinance (Dgm) and the National Microfinance Fund (Fnm), the proportion of decentralized financial systems (Sfd) respecting prudential management standards should increase from 20% to 25% in 2024 then 35% in 2026, according to the ministry’s multi-year expenditure programming document (Dppd 2024-2026, May 2023).
The growth rate of Sfd customers would be 25% in 2024 then 30% in 2026, after 15% in 2022 and this, with 100% repayment of credits. The number of service points would increase from 690 to 800 in 2024 then to 900 from 2025.
With the support of the National Agency for the Surveillance of Decentralized Financial Systems (Anssfd), the program emphasizes the professionalization of actors and the diversification of financial services. It is planned to implement a financial education program for the benefit of the population and a National Financial Inclusion Strategy (SNIF) and the credit component of the Insurance project for the strengthening of human capital (Arch ). Added to this is the digitalization of all financial services, the financing of agriculture and other innovative products as well as the finalization of the Microfinance Development Policy Document.
It is also necessary to seek innovative financing that can improve the supply of financial services and generate demand for said services among vulnerable groups.
The actions to be carried out are estimated at 896.44 million CFA francs for the year 2024 and more than 900 million for 2025 and 2026.
Diagnostic
Most Sfds still have difficulty complying with regulatory requirements, in particular compliance with the prudential ratio and profitability standards, which impacts their ability to serve their target populations. The DGM, which must ensure the promotion of microfinance through the Microfinance Promotion Department, remains faced with a problem of insufficient financial resources.
The resources allocated to the Dgm gradually decreased from 234 million Cfa in 2019 to 168 million Cfa in 2022, a drop of 28% over the period. This state of affairs does not make it possible to meet the multiple demands for capacity building from microfinance stakeholders and to carry out more actions to promote microfinance.
Likewise, the Fnm, responsible for coordinating actions and ensuring a better future for the microfinance sector, is not better off. From 2013 to 2018, state operating subsidies for the benefit of the Fnm increased from 5.214 billion CFA francs to 800 million CFA francs, although with an increase to 5.414 billion CFA francs.
F Cfa in 2015. Then, these subsidies increased from 934.865 million F Cfa in 2017 to 600 million F Cfa in 2020, before experiencing a slight increase to 890.388 million F Cfa in 2021.
The sources of financing for financial services adapted to the economically weak are almost exclusively public and therefore non-competitive and sustainable, a situation which limits the access of Sfd to financial resources and of the poorest to adapted microcredit services.
Law No. 2012-14 of March 21, 2012 regulating Sfds in the Republic of Benin aims to protect customers and Sfds, but it is restrictive in terms of activities that Sfds can exercise, particularly in terms of digital finance, and requires authorizations from the Central Bank, sometimes with significant delays.
Furthermore, the process of obtaining approval for opening a Sfd remains long and complex, favoring the emergence of the informal sector?