CHAPTER -2 HISTORY OF MICROFINANCE INSTITUTION IN IVORY COAST
Microfinance institution in Ivory Coast
In this chapter, we can talk about the history of microfinance institution in Ivory Coast. what are the different microfinances institutions in this west Africa country, in which year microfinance activities start in Ivory Coast? where precisely? What are the real data of microfinancing in Ivory Coast?
Microfinance in Ivory Coast
Microfinance in Ivory Coast was born in 1976 with the advent of the CREP- COOPEC network to give a new horizon for the rural development. The dynamism of this sector has favoured the liberalization of the banking system with support for international institutions and put an end to the poverty that kept growing over time. In 2014, this sector of activity had 322 services points.
In the same year, microfinance reached more than 827,912 customers in all regions of the country and accumulation of savings and credit were respectively estimated at 146.7 billion and 100.7 billion (FCFA). The success of microfinance in Ivory Coast is linked to the informal sector, some microfinance grants credit to certain companies or to individuals so much so that the collection is done daily in small sums of money collected by microfinance agents, sometimes even offers by telephone deposit Orange money, Moov money and Mtn money. Moreover, in terms of leadership UNACOOPEC-CI remains to this day one of the best microfinance institutions in Ivory Coast and in the sub-region. This institution has been able to issue a subsidiary in each region of the country and very often receives subsidies from the State of Ivory Coast and guarantee and loan support funds. It represents the largest microfinance institution in the country with a market share of more than 65.7%. which concerns collection and savings with an estimated rate of 60.3% in 2014 when microcredit, which is an international microfinance institution,
excels in the distribution of credit (40.1%) according to CNM in 2014. in reality the Ivorian market is dominated by five (5) large financial institutions such as ADVANS-CI, GES-CI, FIDRA, UNACOOPEC-CI, MICROCREDIT-CI.
The financing of economic activities
Partial or total financing of economic activity sectors in Ivory Coast in 2012 is equivalent to 72 billion (FCFA). Microfinance considers more the trade sector with an annual financing rate of more than 49% of total financing.
The handicraft sector and other economic activity sectors represent only 16% while the agriculture and livestock sector, the two areas of activity put together represent 9% of the total. credit sharing’ according to national commission microfinance in 2012.
Ivory Coast is dominated by the agricultural sector because most of the Ivorian population is in the villages, clearly to understand microfinance in this country. we will try to analyse financial performance and profitability of microfinance institutions in key sectors of the Ivorian economy.
General datas of the microfinance institution in Ivory Coast
The general data is a collection of world-class information on the financial performance of microfinance institutions in all markets. The three-year compliance fee (2013-2015) aims to publish the number of customers, loan balances and savings. Analysis of the number of clients shows that sampling performance continues to improve. This is explained by the number of customers growing by more than 23% per year, rising from 183,661 to 290,565 in three years. This high proportion of customers was linked to the post- election crisis in Ivory Coast, where financial institutions were closed for security reasons and their activities were severely restricted. At the end of the 2011 crisis, the need to save and borrow to cope with the loss of assets made it
imperative to resume activities to meet the needs of the family. As a result, some clients remain loyal to the microfinance industry.
Overall, this sample shows a wide variation in performance against the services offered. People’s confidence is explained by the competitiveness of the MFI. MFIs primarily serve non-regular workers. Its proposal is therefore aimed at micro-enterprises and solidarity women’s groups. These customers also benefit from training in financial and commercial management of the informal sector and support for social integration.
Through literacy and health programs. It is also important to reassure the IMF’s, medical partners while emphasizing the continued operational capabilities of the spacecraft.
2.4. Towards inclusive finance
While Ivory Coast has had exceptional growth and success over the past ten years, there are other factors that warrant caution. Low-income households in the Ivory Coast frequently need to borrow money from friends, relatives, or money lenders. An open and effective society must have unrestricted access to public goods and services.
It is stated that because banking services are inherently a public benefit, it is crucial that their accessibility to the whole populace without restriction be the main goal of public policy. Poor people expect the financial system to provide them with deposits that are secure and safe, cheap transaction fees, flexible operation hours, frequent deposits, quick and simple access to credit, and other goods, including remittance that is appropriate for their consumption and income.