Microfinance in the UMOA: a sustained savings dynamic, but persistent tensions on credit

In the first quarter of 2025, the decentralized financial systems (DFS) of the West African Monetary Union (WAMU) confirm their essential role in regional financial inclusion. With 533 active institutions and 4,807 service points, they serve 19.7 million clients, an increase of 7% year-on-year. This continued growth reflects the strong demand for proximity financial services, particularly in rural areas where DFS are often the only accessible players. The amount of savings collected by DFS reached 2,560.9 billion CFA francs by the end of March 2025, up 4.1% from the previous quarter and 8.7% year-on-year. 

This performance is driven by increases recorded in Benin (+7.7%), Togo (+5.5%), Burkina Faso (+5.2%), and Côte d'Ivoire (+4%). The structure of savings remains dominated by demand deposits (57.3%), indicating a preference for liquidity in an uncertain environment. However, the gender distribution of deposits highlights a persistent imbalance. Indeed, women hold only 27.2% of total savings, compared to 46% for men, suggesting potential for growth among this clientele. 

At the same time, the amount of loans stands at 2,628.4 billion CFA francs, down 2.4% from the previous quarter, despite an annual increase of 4.5%. This decline is attributed to seasonal factors and a decrease in the average loan amount (-5%, to 133,322 CFA francs), particularly pronounced in Benin, Togo, and Côte d'Ivoire. Short-term financing represents 47.2% of the loans granted, confirming the predominance of cash flow and working capital needs. 

However, the quality of the portfolio is significantly deteriorating. The rate of non-performing loans stands at 9.8%, well above the prudential threshold of 3%, compared to 8.9% in the previous quarter. This deterioration is explained by the rise in defaults (+8%), in a context marked by inflation, insecurity, and climate shocks. 

Although representing 7.1% of loans and 5.3% of regional banking savings, microfinance retains strategic importance. It remains a crucial lever for financing millions of actors in the informal sector. Strengthening its resilience and governance remains imperative to ensure the viability of the model. 

Source: Ecofin Agency, MEPD Web Portal Editorial Team