VSLAS (Village Saving & Loan Associations) - Benin
CONTEXT OF THE MICROFINANCE MARKET IN BENIN - SOME INDICATORS ON DFS IN 2017 - FINANCING APPROACH OF DFS OR MFIs
SAVINGS - CAPITAL - DFS
MICROFINANCE IN BENIN
Beninese women's access to financing
Benin has a population of approximately 11,527,412 inhabitants (INSAE estimates) with a predominantly young population. Unlike other nations, it has a female-dominated population (51.5%). More than 90% of them animate the life of our markets, shopping centers, shops, etc. Paradoxically, they are confronted in the implementation of their economic activity with the difficulty of access to credits. Excluded from formal economic and financial circuits, they resort to the informal circuit to finance their activities. This does not always offer social protection.
To solve this difficulty, governments are opting for financial inclusion through the promotion of microfinance institutions. This is the possibility for women entrepreneurs or women's associations to access at a lower cost a whole range of useful financial products and services adapted to their activities/companies offered by reliable and responsible service providers.
Context of the microfinance market in Benin
As of June 30, 2017, the decentralized finance sector in Benin is composed of ninety-eight (98) Decentralized Financial Systems (DFS) distributed as follows:
- three (03) SFD constituted in the form of a company;
- seventy-six (76) mutual or cooperative DFS including three (03) networks;
- nineteen (19) DFS constituted in the form of associations or NGOs.
The SFDs are established on the national territory through 639 representation in the form of: service points, agencies or counters.
Some indicators on DFS in 2017
The main characteristic indicators of the decentralized finance sector are as follows:
- SFD clientele 1,966,510 people;
- the outstanding credit of SFDs is 280,181,182 US dollars;
- the amount of the deposits is estimated at 235,468,928 US Dollars;
- the amount of internal credit lines stands at 58,232,004. US Dollars.
Approach to financing SFDs or MFIs
In Benin, MFIs or SFDs have two (02) financing approaches according to which they offer their services to beneficiaries: the mutualist approach and the solidarity approach.
The mutualist approach insists on the “savings/credit” couple with well-defined terms and is based on the principles of prior savings and membership. The credit is granted to individuals considered as members and therefore dependent on each other.
The solidarity approach is characterized by the model of the quotGrameen Bankquot based on the principle of credit without savings which, rather, is gradually constituted according to the development curve of the activity.
LIST OF MICROFINANCE INSTITUTIONS IN BENIN
ACCESS TO CAPITAL IN BENIN: MICROFINANCE INSTITUTIONS
According to the 2018 directory of sources of financing for SMEs/SMIs in Benin, there are 38 microfinance institutions, some of which are:
AFRICA VISION MICROFINANCE