The BCEAO report on Decentralized Financial Systems (SFD) within the UEMOA at the end of March 2024, published on July 15, 2024, reveals several important trends, with a particular focus on the situation in Côte d'Ivoire, a key player in the sector.
In the first quarter of 2024, the SFD recorded a notable increase of 64.5 billion FCFA in the outstanding deposits, representing a rise of 2.8% compared to the previous quarter, bringing the total deposits collected to 2,356.4 billion FCFA. Year-on-year, this growth is even more pronounced, reaching 16.4%. In Côte d'Ivoire, deposits grew by 6.1 billion FCFA, an increase of 1.1% compared to the previous quarter, illustrating the continued confidence of depositors in microfinance institutions.
However, Côte d'Ivoire also experienced a slight contraction in the outstanding loans, which decreased by 25 billion FCFA, a drop of 3.9% compared to the previous quarter. This decrease is part of a regional trend influenced by a seasonal decline in household spending following the year-end festivities. Nevertheless, the outstanding loans remain in annual growth, demonstrating the resilience of the sector.
The continuous increase in deposit collection in Côte d'Ivoire reflects a growing trust among clients, as evidenced by the rise in the average amount of deposits per client. This positive dynamic, despite the contraction in loans, reinforces Côte d'Ivoire's central role in the microfinance sector within the UEMOA.
The report also highlights a crucial challenge: the deterioration of the quality of the loan portfolio. In Côte d'Ivoire, as in the rest of the Union, this deterioration calls for increased vigilance and strengthened measures to manage credit risks, an essential condition to ensure the sustainability and stability of the sector.
In summary, while Côte d'Ivoire shows solid performance in deposit collection, the need to strengthen risk management strategies remains paramount to consolidate gains and support the future growth of the microfinance sector.
Source : BCEAO, MEPD Web Portal Editorial Team
