Inclusive Finance: the FNFI has loaned more than CFA100 bln to 1.7 mln people since its creation

Finance

Monday, 09 May 2022 13:30

Inclusive Finance: the FNFI has loaned more than CFA100 bln to 1.7 mln people since its creation

(Togo First) - In its eight years of activity, the National Fund for Inclusive Finance (FNFI) of Togo has loaned over CFA100 billion to people who cannot get access to traditional financing services. The figure, updated on March 31, 2022, was disclosed a few days ago by Mazamesso Assih, the minister in charge of financial inclusion and the informal sector.

The money was shared between more than 1.7 million people, through 14 products. While the repayment rate remains high, 94.48%, Mazamesso Assih said there is still room for improvement.

To date, the FNFI has 338 service points all over the country and partners with 22 financial service providers.

255,000 more beneficiaries by 2025

Due to business activities growing rapidly and the need to better monitor provided loans, the government announced some weeks ago that it would revise the FNFI’s attributes and expand fund provision under the mechanism.

With new measures introduced, the fund is now set to reach 255,000 more beneficiaries by 2025.

Digitalization and incentives

To achieve this, the government will close the gap between the fund and the people targeted, as well as improve the quality of services provided.

Digitalization and more incentives are some of the tools the ministry of financial inclusion plans to leverage within the next five years, in this framework.

A facilitation mechanism between banks and decentralized financial services should also emerge, to better meet the growing demand for microfinance services.

Octave Bruce

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.