Financial inclusion and microfinance: a lever for development
Financial inclusion corresponds to the possibility for populations to access and use basic financial services such as a payment account, savings, or credit. In Central Africa, where a significant portion of the population remains outside the traditional banking system, microfinance constitutes a key lever to strengthen this access and support economic development.
Financial inclusion in Central Africa: where do we stand?
According to the Bank of Central African States (BEAC), the financial inclusion rate in the CEMAC zone was estimated at 32% in 2021. This figure includes accounts held in banks, microfinance institutions, and mobile payment services that are actually used.
In detail:
- The strict banking rate (bank accounts only) was 12%;
- The extended banking rate, integrating microfinance institutions (MFIs), reached 22%.
These data show that fewer than one in three adults today use formal financial services in Central Africa, which confirms the importance of tailored solutions to widen financial access in the sub-region.
Microfinance: a pillar of financial inclusion in CEMAC
Economic analyses indicate that access to microfinance credit has a positive and significant effect on long-term household consumption, which means that these households can better satisfy their essential needs and invest in their economic activity.
In the CEMAC zone, microfinance institutions (MFIs) play a tangible role in financial inclusion:
- At the end of 2024, microfinance institutions in CEMAC granted approximately 1,039 billion FCFA in loans to economic agents;
- Cameroon concentrates nearly 57.6% of these loans, which reflects the weight of the microfinance sector in this country;
- The total balance sheet of CEMAC MFIs rose from approximately 1,514 billion FCFA in 2019 to 1,946 billion FCFA in 2023, reflecting sustained growth in the sector;
- Over the same period, collected deposits rose from 828 billion FCFA to 1,489 billion FCFA, a sign of increased public trust in these institutions.
These figures show that microfinance effectively contributes to bringing financial services closer to populations that are often excluded from traditional banking circuits.
The effects on economic development
Financial inclusion, supported by microfinance, acts as a lever for sustainable development for several reasons:
1. Access to finance for micro-entrepreneurs
Micro-entrepreneurs and small businesses, particularly in rural or informal areas, can access microcredit to develop their activities, purchase inputs, or invest in essential equipment.
2. Increased household well-being
Access to formal savings and tailored credit helps households manage financial risks, consume more predictably, and invest in their families’ education or health.
3. Strengthening the local economy
The circulation of savings and credit at the local level stimulates economic activities, fosters job creation, and strengthens the economic resilience of communities.
Conclusion: an essential lever for development
Financial inclusion, driven by a growing microfinance sector, constitutes a strategic lever for development in Central Africa. CEMAC data shows real progress, but also significant potential to be exploited. Strengthening regional financial infrastructures and the interoperability of services remain essential to accelerate sustainable and inclusive financial inclusion.
