Togo: Microfinance Institutions Collected More and Loaned Less in Q1 2024

Finance

Wednesday, 24 July 2024 08:09

Togo: Microfinance Institutions Collected More and Loaned Less in Q1 2024

(Togo First) - From January to March 2024, microfinance institutions in Togo saw their deposits rise by CFA17 billion, up 4.6% compared to Q4 2024. This was the highest increase among decentralized financial systems in the West African Economic and Monetary Union (WAEMU) for Q1 2024, according to data from the Union’s Apex bank, the BCEAO.

In comparison, Benin's deposits grew by CFA15.3 billion, Burkina Faso's by CFA12.5 billion, and Senegal’s by CFA9.6 billion. Côte d'Ivoire also saw an increase of CFA9.6 billion. Overall, Togo's deposits rose by 4.6% from the previous quarter.

Across the WAEMU region, total deposits increased by CFA64.5 billion, or 2.8%, reaching CFA2,356.4 billion.

On the other hand, loans from microfinance institutions in Togo fell by 2.5%, a decrease of CFA9.2 billion. This trend was seen across the region, with total loans dropping by CFA72.6 billion, or 2.8%, compared to Q4 2023. In Benin, the drop was more significant: 10.9%. Côte d’Ivoire and Senegal only loaned less money, respectively 3.9% and 1.1%, in Q1 2024.

BCEAO attributes the decline in loans to seasonal factors. The Bank explained that people tend to spend less after the holiday season. Regardless, compared to Q1 2023 where they had loaned CFA2,515.4 billion, microfinance institutions loaned 15.9% more.

Ayi Renaud Dossavi

REFORMS OVERVIEW

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