Clients that have lost money in collapsed microfinance institutions (MFIs) in the Economic and Monetary Community of Central Africa (Communauté Économique et Monétaire de l’Afrique Centrale – CEMAC) will have their money reimbursed. This was announced by the President of the Committee for the Facilitation of Training on Microfinance in CEMAC, Joseph Mbouombouo Ndam at the annual meeting of the region’s microfinance industry, organised by the Réseau des Institutions de Microfinance au Burundi (RIM).
The Bank of Central African States (Banque des Etats de l’Afrique Centrale – BEAC) will reimburse the stricken MFIs directly, who in turn can reimburse their clients, though Mr Mbouombouo Ndam said this process could take some time. Each case will have to be investigated first by the Central African Banking Commission (Commission Bancaire de l’Afrique Centrale – COBAC), which accredits MFIs in the region and oversees the sector, and MFIs that are discovered to have shut down due to embezzlement will not be eligible for any reimbursement.
The announcement came as the annual meeting discussed ways of regulating the microfinance industry more successfully as a result of a number of MFI closures in recent years. Mr Mbouombouo Ndam said the closures were due to MFIs having either no business plan or little knowledge of financial regulations.
RIM is a Burundian organisation that advises governments and MFIs on microfinance and development. Over the last few years it has facilitated the registration of 10 MFIs in Burundi by the Central Bank.
CEMAC is an organization of states of Central Africa established to promote economic integration among countries that share a common currency, the CFA franc. Its member states are Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea and Gabon. One of CEMAC’s objectives is to promote economic and financial activity in under-privileged countries and regions. CEMAC countries share a common financial, regulatory, and legal structure.
Amy Rennison, MicroCapital writer
Additional Sources:
AllAfrica.com:
http://allafrica.com/stories/200712020010.html
Wikipedia:
http://en.wikipedia.org/wiki/Economic_and_Monetary_Community_of_Central_Africa
World Relief:
https://community.wr.org/NETCOMMUNITY/SSLPage.aspx?pid=597&srcid=668
MixMarket:
http://www.mixmarket.org/en/partners/partners.show.profile.asp?ett=1807
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