In the memo published on page 8 of April 11, 2011 issue of Cameroon Tribune, Essimi Menye expressed his worry after receiving numerous complaints from clients on the irregularity of some transactions. “We observe that some prohibitive and arbitrary interest rates practised give an impression that your sole goal is the pursuit of enrichment at the detriment of your clients,” he stated. Consequently, the Minister instructed MFIs to comply with Rule No. 01/02/CEMAC/UMAC/COBAC of April 13, 2002 outlining the exercise and control of microfinance activity in the CEMAC Zone. He laid emphasis on Article 65 which provides that finance institutions must periodically publish their financial and account situations and paste the conditions applicable to the clientele on cash desks. In front of cash desks and reception rooms of most MFI branches visited in Yaounde on Monday June 6, financial balance sheets and transaction charges were not yet pasted for clients.
Reacting on behalf of the sector, the Executive Secretary of the National Association of Microfinance Institutions in Cameroon ANEMCAM, Gabriel Nzoyem noted the timeliness of the minister’s circular letter whose notion of transparency was imperative and aimed at ensuring a good functioning of the entire financial system. “Disappointed members or clients who send complaints to the Minister do not copy us so that we can take targeted sensitisation actions on MFIs accused of violation,” he said. Gabriel Nzoyem blamed the situation on a misunderstanding by most actors in the sector, including clients. Using the same April 13, 2002 rule as reference, he explained that Category One MFIs constituted 90 per cent of the sector, numbering 420 of the 460 MFIs authorised by the monetary authority as of December 31 2008. Their applicable tariff rates, he said, were generally defined by governance institutions put in place by the members and adopted during general assembly meetings. “It is thus difficult to understand why these same members complain to the Minister,” he stated. He also noted that the remaining 38 Second Category and two Third Category MFIs generally hold annual general meetings where they fix and adopt applicable rates. “Today, we just have to ensure that these rates are published and systematically pasted on cash desks in all branches,” he said, adding that ANEMCAM will assist the Minister in his sensitisation efforts.
According to a survey undertaken in 2008 by the Central African Banking Commission, COBAC, the microfiance sector counted 460 licensed MFIs, 1,5 million clients, a capital of FCFA 22 billion, FCFA 258 billion deposits collected, 983 branches, one million accounts, 15,000 direct jobs, FCFA 139 billion given out as loans and FCFA 293 billion transacted in money transfer operations.
