Cameroon: Stakeholders Embrace Microfinance Regulation
By Shout-Africa Cameroon correspondent – A workshop to instil order in the sector held in the economic capital, Douala, December 1.
Participants at the microfinance workshop
The sector of microfinance in the country has grown simultaneously in number and disorder. Even though it remains a crucial sector employing many young people, insufficient mastery of some of its texts still plagues the economy.
Cameroon is said to be hosting some 500 microfinance institutions (MFIs), only at most 430 are legal. Sixty are in the economic capital, Douala. Numerous others operating illegally were blamed for dubious interest rates, misappropriation, and unexplained deductions from savings that often led to the frustration of clients, explained the Chef of Promotion and Microfinance Follow-up in the Ministry of Finance (MINFI), Ongolo Maximin, at the opening ceremony of a day’s workshop in Douala yesterday.
“It reflects the inadequate understanding of some basic regulations. The result was bad governance, mismanagement, lack of transparency, illegal existence and non-respect of ethics,” he stressed.
Due to this, MINFI and COBAC withdrew agreements of MFIs that were no longer functional and also closed those that functioned without an agreement. In a circular early this year, the Ministry urged MFIs to regularly inform its clients on the rates. MFIs were also matriculated with the collaboration of the National Credit Council.
The workshop, whose aim was to reinforce the professionalism of microfinance actors, was in line with government’s efforts started in 2009 to educate and control various insufficiencies. The Monetary and Control Committee, which is the Ministry of Finance, mobilised actors from microfinance institutions, credit unions, and associations to the workshop to pump in new impetus in the sector.
President of Cameroon National Association of Microfinance Institution (ANIMCAM), Samo Lucas, reiterated the importance of obtaining an agreement from the competent authority. He disclosed that due to the blame on the Ministry, the administration went down to the field and undertook an inventory of the institutions, educated them and advised them to shun the evil practices.
“Disorders in the sector are owed to those operating illegally,” he concluded. The training was organised with the support of the UNDP.
