By 2021, the Central African Banking Commission (COBAC) has set itself, among other objectives, to recapitalize micro-finance institutions (MFIs) and strengthen internal controls to clean up a “gangrené” sector. by “bad habits”
According to industry experts, this new reform is important after the one initiated in 2002 because it sets the new regulatory framework and the conditions for the exercise and control of microfinance activity in the European Economic and Monetary Community. Central Africa (CEMAC).
The lack of respect for the rules in the micro-finance sector in Gabon had led the Gabonese authorities to close some institutions responsible for misappropriating the savings of their clientele before the latter, despite conventional banking institutions, more rigorous in obtaining loans and especially less close to their daily concerns.
In addition, micro-finance players will have to take ownership of the new texts from now on, including a stronger commitment to better manage their structure.
For the President of COBAC, Mr. Abbas Mahamat Tolli, who was speaking at the end of June at a consultation meeting in Yaoundé, Cameroon, “the entry into force of the new regulatory framework will induce profound changes in the situation MFIs both in terms of the development of the microfinance activity and the supervision and supervision of the sector in the CEMAC “.
According to Mr. Abbas Mahamat Tolli, “if the current regulatory framework put in place in 2002 has shown its limits, it is well known that the results of the various surveys conducted by COBAC with microfinance institutions have highlighted several weaknesses of the operative provisions “.
It should be noted that the CEMAC has 700 approved micro-finance institutions whose cumulative data show a balance sheet total of CFAF 1158 billion, a total deposit of CFAF 907 billion and outstanding loans of CFAF 582 billion gross. as of December 31, 2017.
Thus, COBAC granted a maximum of two years to the microcredit institutions, as of January 1, 2019, to ensure that all comply with the new regulatory framework. In terms of recapitalization, the 2nd and 3rd category establishments will have to go from 50 to 100 million CFA francs in January 2018. Then to 300 million CFA francs on January 1st, 2021. And for the 3rd category EMF, to go up by 25 million to 50 million CFA francs on January 1, 2018, before continuing to CFAF 150 million by January 1, 2021. An extensive program.
