AFRICA AND MICROCREDIT.

The lack of financial services tailored to the needs of the most vulnerable populations, gave birth to microfinance.

The latter made his first steps in Bangladesh. Through, the Grameenk Bank founded by Muhammad Yunus.

This innovative concept at the time, had the ambition to provide small loans to villagers organized a volunteer group. The major innovation that allowed him to remove the guarantee and develop rapidly is: the principle of joint responsibility.

• Evolution

In Africa, microfinance is growing rapidly. But only 7% of funds raised with 3.6 billion Euros and 5% of borrowers in 2010 according to figures from Mix Market.For the simple reason that it was first developed in Asia and in Latin America. In urban or densely populated rural areas. This form of financing with fixed costs, business volumes have to be high to achieve a balance prior profitability. But, African cities remain smaller than the Latin American metropolises or Asians. As for campaigns, they are not as densely populated.

• Potential

Demographic trends in Africa leaves, however, point to a catch over the next twenty to thirty years.

Africa represents a huge market for microcredit. Ultimately, the needs will be huge in the cities. But microfinance in rural areas is of primary importance.

• Controversy

With hindsight, the popularity of microfinance has faded. Because the crises of over-indebtedness of microfinance clients in the state of Andhra Pradesh in India. Which led to many suicides and a serious political crisis. Added to this are various controversies around Muhammad Yunus.

• Success

Do not forget to note that, microcredit has still been very successful in countries such as Cameroon: With ACEP who was first a public credit initiative launched in 2009.And intended for very small enterprises (VSE ) located in urban areas and working in the informal sector. Its target: Merchants, tailors, carpenters and other artisans can not provide security to a bank for a conventional loan. Initially funded by the French Development Agency (AFD) and the European Union (EU) .ACEP became a limited company in 2005.A leading institution in the sub-region with 1 billion XAF funding per month.And lines open to any contractor provided that its business is viable and that it is of good character.


Despite the positive impact or the state of grace, which she could enjoy during his early years. Microfinance has not always had the magical virtues that one would have wanted him or loaned. It can not solve all the problems of African economies. Which are often linked to the lack of economical,political and social viable reforms.

On the other hand, a microfinance abandoned to itself without a specific regulatory framework can not fulfill its potential.

This regard,our modest contribution on microcredit in Africa.


Frédéric Betta-Akwa