Cameroon’s Prime Minister, Philemon Yang has described the country’s micro finance sector as fairly stable and dynamic.
Philemon Yang made the remark to Parliamentarians while introducing the government’s economic, financial, social and cultural program for 2019. He said the sector contributes nearly 11 percent to the financing of the economy of Cameroon.
This is a 1 point rise compared to 2017. Last year where microfinance activity accounted for 53 percent of deposits in the Central African Economic and Monetary Community (CEMAC), or over CFAF340 billion with 69 percent of loans granted to customers in the sub-region.
As of 31st December, according to the Finance ministry, the number of accounts opened in such finance houses in Cameroon was 3.03 million, against 2.14 million in credit institutions.
With regard to the malfunctions that contribute to the instability and the unreliability of the sector, the government remains wary particularly of poor governance, due to institutional weakness.
For the head of the microfinance division at the Finance ministry, Ahmadou Bouba, speaking a few months earlier during a conference, this environment is blighted by the embezzlement of funds by executives, granting loans without guarantee, the lack of a procedural manual, an uncertain management of the risks, lack of confidence among customers over securing their savings as well as the inadequacy of the service on offer.