Unlocking financial inclusion: 5 keys to microfinance success in Ivory Coast




The primary goal of microfinance is to create a favourable environment in which low-income self-employed and near poor households have permanent access to a suitable range of high-quality financial services, including not only credit but also savings, insurance, and general banking services.

Meaning of research

Research is described as the development of new knowledge and/or the creative use of existing information to produce new concepts, approaches, and understandings. This might entail synthesising and analysing existing research to the point where it results in fresh and innovative conclusions.

Need of study

Microfinance institutions’ principal service is to increase impoverished people’s access to micro-scale funding. This is advantageous for those who do not have access to a bank account (are unbanked) or do not have collateral. Both can obtain financing from microfinance organisations in order to continue their businesses and enhance community output.

Scope of study

Microfinancing is the process of providing loans, credit, and services to the impoverished or under-financed segments of society, such as women in developing countries. Investigate how institutions are using microfinance to help entrepreneurs and small companies grow and rise out of poverty.

Research problem

Insufficient investment validation. Investment valuation is a critical competency for a microfinance institution’s smooth operation. Because of the developing nature of the marketplaces in which microfinance institutions operate, market activity is sometimes constrained. As a result, access to market data for valuation reasons becomes challenging for microfinance institutions.

Research gap

The primary goals are to gain a better knowledge of the financial performance and profitability of microfinance institutions in the Ivory Coast in terms of asset quality and other characteristics by monitoring credit and interest rates.

Descriptive design

The descriptive survey design was used because this design enables one to capture all pertinent aspects of a situation while employing a unit study and investigation. The researcher systematically collected data, presented it, analysed it and finally made conclusion and recommendations.

The population of this study was all the 50 microfinance institutions in Ivory Coast. A list of all the 50 Microfinance Institutions obtained from the Association of Microfinance Institution formed the sampling frame for the research.

Secondary data

The sample size for secondary data was determined by Census technique and thus the study therefore adopted a sample size of 50 microfinance institutions. Microfinance institutions disclose their financial information through SIKA Finance web portal.

The data collected for both the dependent and independent variables was adjusted ratios and averages derived from the MFIs financial statements. A form for secondary data collection was then used to summarize relevant data on total assets, total operating expenses, total debt, total equity, total operating expenses, net income, and total customer deposits from the financial statements in order to calculate relevant ratios, descriptive measures and regression analysis.

variable model

Information was sorted, coded and input into the statistical package for social sciences (SPSS) version 20 for production of graphs, tables, descriptive statistics and inferential statistics. A multiple regression model was used to test the significance of the influence of the independent variables on the dependent

variable. Correlation was used to test the relationship of independent and dependent variables model:

Y = βo +β1X1 + ε Where:

Y = Financial sustainability

β1 =Regression coefficient

X1= Financial performance

ε = standard error

βo= Constant term

source of data

Data was collected using a standardised questionnaire with questions relating to the demographic characteristics of respondents and the financial performance of the selected Microfinance Institutions. The study used ex post facto or retrospective designs, prospective designs, and descriptive survey design, specifically descriptive comparative and descriptive correlation strategies.

The Cronbach’s Alpha coefficient test revealed that the surveys were trustworthy since the coefficient was more than 0.5 (=0.

859). Using the Slovens formula, a sample size of 266 was calculated from a population of 792.

Data was obtained from a sample of 266 respondents from chosen Microfinance institutions in ivory coast, using a combination of purposeful and systematic selection and simple random sampling, and was analysed using summary statistics such as means and rankings. The test, correlations, and regression analysis were used to test the null hypothesis.

Findings the level of financial performance of chosen Ivory Coast microfinance institutions the overall financial performance of microfinance in Ivory Coast is high (overall mean =3.09), implying that most financial institutions on the ivory coast are financially sound, robust, and lucrative, as profit is the fundamental aim of all commercial enterprises. The firm will not exist in the long run if it is not profitable. So analysing present and previous profitability as

well as forecasting future profitability is critical, and this clearly demonstrates if the microfinance institutions in the central part of Ivory Coast are viable.

Testing of data

Table 1: The degree of Financial Performance in the selected Microfinance institutions in Ivory Coast.

Financial performance Mean Interpretation rank
profitability 3.22 high 1


3.21 high 2
Portfolio quality 2.97 high 3
Market share 2.93 high 4
Total average


3.09 high

Source: primary Data




List of microfinance institution in Ivory Coast


In this table, we are going to give all the microfinance institutions that are approved by the government of Ivory Coast, their name and their denomination, it should however be remembered that these microfinance institutions are evaluated by the government at the end of each year in order to take advantage of government subsidies from the ivory coast.

Numbers Acronym Denomination
1 UNACOOPEC-CI National Union of Savings cooperatives and

Credit from Ivory Coast

2 RCMEC-CI Network of savings and credit from ivory coast
3 MUTAS-RCEMAF Social action mutual network of mutual saving and financial assistance funds
4 REMUCI Credit and savings mutual for women in Aboisso Bonoua and Grand Bassam
5 GES-CI Savings group and support in Ivory Coast
6 MUCREFBO Credit mutual of woman in the region of puffed up
7 CECO Savings Bank and credit of Odienne
8 MUKEFI Mutual kumala and fund
9 CMCI Mutual credit of Ivory Coast
10 MUCREF-CI Mutual savings and credit of officials of Ivory Coast
11 CFEF-CI Fund for the financing of women’s entrepreunship in Ivory Coast
12 I.F.E.C.C Financial institution of savings and credit of Soubre Co-operators
13 C.M.E.C.E.L Mutual savings Breeders Credit
14 CNEC-SEQUOIA National fund and savings of Sequoia
15 C.P.F.C.I People’s credit and women of Ivory Coast
16 CECKA Savings Bank and credit Kelecho d’Agou
17 CEFA GABIADJI Savings Bank and Agricultural financing
18 CANARI National fund for Relaunch of Initiatives
19 OMIS FINANCES Omitted finances
20 FONIC-CI National initiatives fund Christian
21 CREDIT-FEF Women’s fund credit
22 CEPE-CI Savings Bank of education staff of Ivory Coast
23 MA2E Mutual of water and electricity agents
24 MCF-PME Mutual credit of small and medium company
25 FCEC Community savings and credit fund of Yamoussoukro
26 MECT Mutual savings and credit Tafire
27 RAOUDA FINANCE Mutual savings and credit
28 CASUDCO Agriculture credit of south comoe
29 COOEP ATTINGUIE Savings cooperative and Loans from Attinguie
30 CREP MICROCREDIT d ’ABENGOUROU Rural savings and loan fund for Abengourou microcredit
31 CREP ECO de MEAGUI Rural savings and economic loan fund for Meagui
32 IGITRUST- CI Igitrust of ivory coast
33 YVEO FINANCES Mutual saving and credit yacoli village school opened
34 CADES Attobrou fund of economic and social development
35 CREDIT ACCESS Credit access
36 FIDRA Fund international active retirement
37 PAMF-CI First agency of ivory coast microfinance
38 AFRIQUE EMERGENCE & INVESTISSEMENT SA Emergent Africa and investment
39 MICROCRED-CI S.A Microcred of Ivory Coast
40 MI MOYE SA Mi moye of ivory coast
41 LE CREDIT DU NORD North credit of ivory coast
42 ADVANS COTE D’IVOIRE Advans of ivory coast
43 C A C .SA Company African credit
44 CEDAICI SA Savings cash for the development agricultural and industrial of ivory coast
45 AMIFA – CI Atlantic microfinance for Africa
46 CELPAID Celpaid finance
47 ADEC SA Alliance for development of savings and credit
49 CEFIS SA Savings and funding social
50 HES FINANCES SA Hes finance



We have a total of more than fifty microfinances institutions accredited in Ivory Coast that act for the same cause, each microfinancing in Ivory Coast has the role of bringing small and medium-sized enterprises out of poverty.

All these microfinance institutions work for the well-being of young people in each region who have a low income and who also want to participate in the ivory Coast national economy.

These microfinances are installed across the entire territory of the Ivory Coast River in order to curb poverty by providing loans to young people, women, start-ups, and operating in the informal sector.

For decades, thanks to these microfinance institutions in Ivory Coast, the poverty has decreased ‘since there has been a perfect evolution in terms of the creation of small and medium-sized enterprises that most often operate in the commercial field, and agriculture.

In Ivory Coast, the government subsidizes more than 1 billion (FCFA) annually to the largest microfinance institutions to encourage them to continue to work for financial autonomy for young people and start-ups.

ranking of microfinance in Ivory Coast according to sika finance


In this table below, it is classified in order of merit, the microfinance institutions which are the pride of the economy of Ivory Coast during the year 2019 and 2020, it should be remembered that since 2020 Sika finances which is a financial company which deals mainly with the classifications of the microfinances however did not still make classification until this day.

no Institution microfinance 2019 2020 variation
1 UNACOOPEC 107315 141126 32%
2 BAOBAB CI 101836 108379 6%
3 COFINA CI 74340 82703 11%
4 ADVANS 61250 63542 4%
5 FIDRA 43541 53192 22%
6 AMIRA CI 15819 18355 16%
7 CREDIT ACCESS 10896 16714 53%
8 GES CI 17404 16688 -4%
9 FIN’ELLE nil 12239 nil
10 MA2E 9740 11069 14%
11 MUCREF 7201 6944 -4%
12 REMUCI 5163 5232 1%
13 PAMFCI 6570 4787 -27%
14 RCMEC 2574 3003 17%
TOTAL BALANCE(million) 463649 543972 17%



Here, the ranking of microfinance institutions in Ivory Coast according to Sika Finance in 2019 and 2020 presents the annual returns of the 14 best microfinances, it can be noted that the fourteen best microfinances during these two consecutive years are the pride of the Ivorian economy with these figures mentioned in this table, UNACOOPEC has always occupied the first place because it is the largest microfinance in Ivory Coast with more clients. During these two consecutive years, the only microfinance UNACOOPEC cumulates 32% of variation contrary to the other microfinances.

All these microfinance institutions are good financial performance and best profitability in these consecutive years.

Types of microfinance investments


Investment typesubtype

Debt financing


Bonds and notes

Equity financing

Direct equity investments

Private equity funds

Hybrid instruments

Convertible loans

Mezzanine financing



In Ivory Coast, we have several types of microfinance investment namely debt financing, equity financing and hybrid instruments, these three types of microfinance investment in ivory coast allow to participate in the economic development of ivory coast and to help young people in poor situations to acquire support funds for their various activities, all these major investments bear witness to the degree of performance and profitability of microfinance institutions in the Ivory Coast. This situation would effectively reduce the unemployment rate.

The investments made have enabled the Ivory Coast to achieve an economic boom and strong GDP growth.

Table of ratios used by microfinance institution


This table shows the different types of ratios used by microfinance institutions to make their activities profitable and to make financial operations dynamic.

These ratios determine the financial performance of microfinance.

Liquidity ratio Turnover ratio Operating profitability ratios Business risk ratios Financial risk ratios Stability ratios Coverage financial ratio
Current ratio Inventory turnover ratio Earning margin Operating leverage Debt equity ratio Fixed asset ratio Fixed interest cover
Quick ratio Capital turnover ratio Return on investment Financial leverage Interest coverage ratio Ratio to current assets to fixed assets Fixed dividend


Absolute liquidity ratio Asset turnover ratio Return on equity Total leverage Debt service

Coverage ratio

Proprietary ratio nil
Cash ratio Net working capital ratio Earnings per share nil nil nil nil
nil Cash conversion cycle nil nil nil nil nil



Here we have the table of ratios which is subdivided into seven categories, that is to say: liquidity ratio, turnover ratio, operating profitability ratios, business risk ratio, financial risk ratio, stability risk ratio, coverage financial ratio, control ratio.

All these ratios are used to calculate the earnings received during microfinance operations in terms of loans and credit. In finance, ratios make it possible to define the relationship between data established by the company in order to make forecasts in the future. Thanks to this type of ratios, microfinance in the Ivory Coast is increasingly performing and benefiting from the return on investment.

To maximize revenue, microfinance generally uses reasonable interest rates and short-term loan repayments to make it increasingly efficient and profitable.

Profitability of microfinance institution


This diagram shows the three major factors that determine the profitability of microfinance institutions in terms of financial gain and annual return.

Credit vetting

Central Bank regulation

Profitability of microfinance institution

Debt collection procedure



The profitability of microfinance institutions in the Ivory Coast can be summarized in three factors such as: debt collection procedure, central bank regulation and credit vetting.

We talk about debt collection procedure by step:

Amicable collection

The commercial revival

Collection by collection company

Judicial recovery

Amicable recovery by bailiff

The order to pay

Summons to the merits

The interim relief

Next we will talk about central Bank regulation


In Ivory Coast, microfinance institutions are regulated by the Central Bank of West African States (BCEAO). They report annually on the results of activities, financial statements and balance sheets to the BCEAO to know the financial situation of each microfinance institution so that the government can subsidize these institutions.

Finally, credit vetting, this credit verification is done by the government through the public treasury, and in turn reports to the BCEAO so that it grants credits and subsidies to microfinance institutions, the verification is done annually by a firm of specialized audit’ which is in charge of carrying out investigations.

Outline of Financial performance of microfinance institutions


Debt collection policy

Here we will justify the three systems that make microfinance institutions perform apart from ratios and investments, we have as proof debt collection policy, internal control system and client appraisal.

Internal control


Financial performance


Client appraisal



We can classify the financial performance of microfinance institutions into three groups, namely debt collection policy, internal control system, and client appraisal.

In each category there are subgroups, we can thus note in the category of debt collection Policy the following elements: regular contact, customer credit limits, and background check.

So in the category of internal control system we have loans size limits credit check, application form, penalty.

Finally, to finish the last category, that is to say client appraisal, we can, among other things, cite energy viable, collateral, failure, etc.

We think that to also talk about the performance of microfinance institutions in Ivory Coast, we can highlight market Share, sale volume and return on asset.



Findings of study


The financial performance of microfinance institution is significantly impacted negatively by the debt to equity ratio, liquidity ratio, and operating expenses ratio, but favourably by the financial self-sufficiency ratio, operational self-sufficiency ratio, and size of microfinance institutions.

Considering the results of the study, we suggest officers of microfinance institutions should place a strong emphasis on maximizing the use of current assets to generate higher cash inflows, prudent use of loan financing, and lowering operational costs. They will also put greater effort into increasing the microfinance institution operational and financial efficiency.



At the end of our theme of study entitled ” the financial performance and profitability of microfinance institutions in Ivory Coast ” we defined the main lines of our memory such as the objectives of microfinance, its advantages without forgetting its disadvantages.

We also justified ‘to another extent the advent of microfinance institutions in Africa more particularly in Ivory Coast and we demonstrated the important data to justify the financial performance and the profitability’ of the various microfinance institutions, their progressive evolution, the strategies for granting credit to disadvantaged and vulnerable people.

In ivory Coast, microfinance has developed in a divergent manner over a number of decades. Nevertheless, given the rise in clients, the restructuring of UNACOOPEC-CI, and the ongoing reorganisation efforts, the sector’s prognosis is still positive. In Ivory Coast, MFIs’ social, financial, and overall performance are likely to be influenced by a number of characteristics that have been discovered by our study.

The outcomes of our calculations allow us to draw the conclusion that the performance of these institutions is significantly influenced by the return on assets (ROA), cooperative MFIs, MFI size, and the age of the MFIs.

Therefore, it would be preferable for small MFIs to restrict the amount of loans they provide so they can manage their structures well and operate effectively. The effectiveness of their institution will therefore depend on how well their management and loan officers are trained.

In order to be effective and competitive, managers of “young” MFIs need plan training for their workforce. They can also benefit from what successful MFIs in the microfinance industry have learned.

In order for MFIs to comply with the texts and have better management tools, the public authorities must increase their efforts in terms of regulatory compliance and frequent training or retraining. In order to make the microfinance industry in the Ivory Coast socially and economically effective, we believe that our work will serve as a tool for increasing knowledge and awareness of microfinance players in the country.




https://the .akdn/where – we work/west- Africa/ivory coast

/microfinance-ivory coast

International Journal of Finance, Insurance and Risk Management Volume XI, Issue 1, 2021

International Journal of Management and Commerce Innovations Vol. 4, Issue 2, pp: (295-302), Month: October 2016 – March 2017, Available at: www.researchpublish.com

https://altf.afdb.org/sites/default /files/2020-02/civ-LTF- country report

https:// www.projectguru.in/types-microfinance-institutions-india

Research Journal of Finance and Accounting

www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.8,

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