They were briefed on loan recovery strategies and governance on July 25 in Yaounde.
General Managers, board members and senior staff of microfinance institutions in the Centre, South and East Regions were on July 25, 2012 in Yaounde sensitised on the problems plaguing the sector.
The sensitisation campaign that was organised by the National Association of Microfinance Institutions in Cameroon (ANEMCAM), focused on good performance in microfinance institutions for sustainability and also invited government to assist the sector, given its external environment.
Difficulties in recovering loans continue to be major challenges to microfinance institutions, MFIs. According to the Secretary General of ANEMCAM, Nzoyem Gabriel, the procedure of recovery generates additional charges. For this reason, an expert explained to participants the measures to take when granting loans and the legal procedure to follow if they are not promptly reimbursed. ANEMCAM also sought to promote good governance in the running of MFIs to ensure quality services to customers.
According to an international expert in microfinance, Kengne David, interest rates of MFIs should not exceed five per cent, yet there are microfinance institutions whose interest rates are more than 20 per cent. In addition, he argued that microfinance institutions pay almost the same amount of taxes as commercial banks that are located in urban areas with enough funds to operate. Nzoyem Gabriel was quick to add that the Ministry of Finance has promised to set a specific tax for MFIs to enable them better carry out their work.
At the end of the sensitisation campaign that has already covered six regions, MFIs services are expected to improve both quantitatively and qualitatively. It is hoped that any reduction of taxes of financial institutions will enhance their sustainability, which is an important tool for poverty alleviation.
ANEMCAM was created in accordance with CEMAC rules to defend the interests of members. It also carries out studies and advocacy for the smooth development of the sector as well as undertakes sensitisation meetings to improve service delivery.
