Following a two-year orientation phase of the savings banks partnership project in Cameroon, the first main project phase to strengthen Cameroon’s village savings banks started in January 2016. At the beginning of April, Annika Peukert, Sparkassenstiftung’s Project Manager for East Africa, and Wolfgang Osoa from MIFED (Microfinance et Developpement) signed a new project agreement on the future cooperation work.
The mutual project has the aim to enhance the financial services offered by the some 240 village savings banks and make them more accessible, better affordable and of higher quality, thus improving the supply of the rural population with such financial service offers. In addition to that, the institutional development of MIFED, the national service provider and founding association of the village savings banks, is to be strengthened. Thus, MIFED will be empowered to fulfil its mandate of supporting the village savings banks and promoting vocational training within Cameroon’s microfinance sector.
Learning from proximity: Insights into the daily routine of a village savings bank
During a visit to a village savings bank in rural Awae, the team consisting of representatives from Sparkassenstiftung and MIFED gained insights into the functioning of such an institute and talked to staff and members about functions, requirements and needs, the savings bank has to master. Furthermore, issues like challenges of lending in a rural environment, training needs in the field of risk management and financial literacy of customers were also topics of discussion. Corresponding training modules are currently being prepared. Within the scope of the three-year project phase, they are to be complemented by other topics, thus including as many village savings banks as possible in the project activities.
Strengthening the village savings banks for financial inclusion in Cameroon
Cameroon is a member of the Central African Economic and Monetary Union (Communauté Economique et Monétaire de l’Afrique Centrale, CEMAC). Among CEMAC’s member states, Cameroon distinguishes itself not only in terms of high economic performance, but also through its relatively stable political environment. Nevertheless, its microfinance sector is characterized by undercapitalisation and a lack of professionalism based on the limited offer of training and further education possibilities. Therefore, the microfinance sector is stagnating and vulnerable. This also influences the financial economy: Less than 15 percent of Cameroon’s population have a bank account; the proportion of less than two banks per 100,000 inhabitants is low – even in comparison to other Sub-Saharan African countries. In addition to that, there are strong income disparities between the rural and urban population.
The savings banks partnership project falls into line with Cameroon’s national financial inclusion strategy and targets to improve the rural population’s supply with financial services by strengthening the village savings banks. The village savings banks are organized as cooperatives in five regional associations. In most of the cases they draw upon the honorary commitment of a few village members, who take deposits and extend loans, thus making basic financial services affordable.
Further information on the savings banks partnership project to strengthen the village savings banks in Cameroon can be accessed <link http: www.sparkassenstiftung.de en projects projekt verbesserung-der-professionalitaet-im-kamerunischen-mikrofinanzsektor-und-staerkung-von-mikrofinanzn.html _blank>here
Contact partners:
Annika Peukert / Carina Lau
Sparkassenstiftung für internationale Kooperation
Simrockstraße 4
53113 Bonn / Germany
Phone: +49 228 9703-6622 / -6608
Fax: +49 228 9703-6613