INSTITUTIONS
The microfinance sector in Africa is characterized by a limited number of large-sized companies, with a range of legal forms (banks, NBFIs, cooperatives and NGOs), which are usually sustainable; and numerous small cooperatives and NGOs, with difficulty to reach institutional sustainability and which are not usually regulated or supervised. In 2006, market participation in terms of customers was distributed as follows: cooperative institutions: 48%; banks: 36%, including post banks; NBFIs: 9%; and, last of all, credit NGOs, with a 7% share. These figures must only be considered as a reference as there is no reliable information or information with generally accepted criteria in this regard.
A detailed description of the characteristics and evolution of the institutions is provided below.
Cooperative institutions occupy a key position due to their broad cover and expansion
Cooperative institutions and mutual benefit societies occupy a key position in the existing offer of financial services in Africa. They have broad experience and extensive cover in many countries in the entire central strip of the continent, excluding the Maghreb, the southern region, and Madagascar. In Kenya, for example, it is the offer of services with the greatest cover, with 4 million customers. Mutual benefit societies are particularly important in the economic areas of the UEMOA and the CEMAC in Western and Central Africa, where they dominate the sector. The consolidation and expansion of the cooperative model were influenced by the action of Canadian and German cooperation, countries with a long tradition in cooperatives, and that of the Canadian organisation Développement International Desjardins, which supported from the start specific companies like PAMECAS in Senegal and RCPB in Burkina Faso, as well as BCEAO, the UEMOA’s central bank, in the regulation of the sector.
