Partial view of microfinance gamers throughout the preparatory workshop for compliance with the brand new uniform legislation, this Thursday, April 3, 2025 in Cotonou
Benin just like the international locations of house the West African Financial Union (UMOA) should adjust to the brand new banking legislation. For this, a uniform invoice is within the technique of adopting the Nationwide Meeting. The brand new uniform legislation, which goals to manage decentralized monetary programs (SFD), guarantees to depth the authorized and operational framework of this sector.
So as to enable decentralized monetary programs (SFD) to be able to adjust to the legislation as quickly as it’s adopted, the Nationwide Company for the Surveillance of Decentralized Monetary Techniques (ANSFD) organized a workshop on Thursday April 3, 2025. It goals to outline preparatory actions for compliance with uniform legislation.
Valentine Doukonou, president of the Skilled Affiliation of Decentralized Monetary Techniques (APSFD), famous on the opening of the workshop that this reform represents a chance to strengthen the transparency and resilience of microfinance establishments whereas preserving their mission of monetary inclusion.
“This occasion is of capital significance, as a result of it’s on the coronary heart of the authorized and financial transformations that form the microfinance sector in our human house,” she stated. She additionally inspired individuals to grab this chance to share their experiences and develop methods tailored to new necessities.
A demanding authorized framework, however carrying hope
In keeping with the director basic of Ansfd, Philippe Dahoui, the implementation of this uniform legislation imposes a number of structural modifications on SFD. Among the many necessities are the creation of boards of administrators, the advance of knowledge programs and the institution of minimal share capital to function legally.
He recalled that these reforms purpose to appropriate the shortcomings famous within the present authorized framework. He additionally warned of dangers linked to a delay in compliance. “If decentralized monetary programs don’t already make the mandatory preparations upfront, they could not have the ability to adjust to it within the twelve months required”.
Current knowledge present that 80 % of SFDs in Benin are usually not but ready to fulfill new necessities. This case may compromise the monetary inclusion and the empowerment of girls, two important pillars of the nation’s socio-economic growth. The actors gathered throughout the workshop insisted on the urgency to take concrete measures to keep away from a destructive affect on susceptible populations.
Luxembourg cooperation, represented by Gilles Da Costa, has additionally performed a key function on this workshop. By way of considered one of its applications, she undertook to help the Beninese authorities within the implementation of its nationwide microfinance technique.
“Luxembourg cooperation has dedicated to persuade the federal government within the implementation of its nationwide technique regardless of the very best performances recorded in different international locations,” stated Gilles Da Costa.
A sector in full processing
The workshop individuals had been entitled to a few communications. The primary, introduced by Philippe Dahoui introduced the scenario within the microfinance sector on December 31, 2024. In keeping with the examine carried out, the microfinance sector in Benin has exceptional efficiency regardless of its structural challenges.
Between 2015 and 2022, the variety of clients doubled to succeed in greater than three million, whereas the variety of service factors elevated to 693. Nevertheless, these figures masks restricted geographic protection: solely 50 % of the nation’s districts are presently benefiting from decentralized monetary providers.
The second communication centered on the primary traces of the brand new uniform legislation regulating the microfinance sector in Benin. It introduced the actors the challenges and involvement. By way of this communication, the individuals had been in a position to see the preparations for compliance.
The final communication centered on the stock of the compliance of SFDs to the brand new legislation. It was a query of presenting the outcomes of the state of preparation of microfinance establishments to the necessities of the brand new laws.
Confronted with these challenges, the workshop organized by the ANSSFD was a strategic platform to replicate on the technique of making certain a harmonious transition to the brand new authorized framework whereas preserving the target of monetary inclusion. The discussions made it attainable to handle varied sensible elements linked to governance, threat administration and alternatives provided by this reform.
