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Population (in millions) |
6.72 |
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Gross Domestic Savings (% of GDP) |
7.2% |
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% Population under $2/day (PPP) |
n/a |
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland
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The PARMEC Law was passed by the Central Bank of West African States (BCEAO) and creates an institutional structure for mutual societies. National Finance Ministries will directly implement the law and provide details on licensing and regulation. Other MFI structures may exist in these various countries; this table discusses only the PARMEC law as passed by the BCEAO. |
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| Credit Unions (Mutual and cooperative savings and credit institutions) | Non-cooperative institutions (all other MFIs) | Groupements | |
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Definition or description of institution |
Mutual and cooperative savings and credit institutions and their unions, federations, and confederations. The institution cannot have a profit-making goal, must be founded on the principles of union, solidarity, and mutual help, and must have savings and credit functions as its principal goal. |
Non-mutual or cooperative savings and credit institutions. |
Essentially small and informal microfinance arrangements that have a cooperative or mutual character but are small enough that they can formally register at a later time. |
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Guidelines & restrictions on financial services |
Permitted: savings and credit, fund transfers. Prohibited: checking. Other activities are permitted with Ministry of Finance approval. |
Unknown |
N/A |
Read more about PARMEC Law
FECECAM's, PASSEF's, FENACREP's, and CBDIBA's savings and credit operations
The role and impact of savings mobilization in
By Gilles GOLDSTEIN and Issa BARRO
This study was undertaken by the United Nations Development Programme and the British Department for Development Co-operation to collaborate in the promotion of savings services for poor people in Africa through "MicroSave - Africa". The purpose of the study was to understand how poor people save in West Africa. The purpose was also to see the response of microfinance institutions as well as the informal sector on this issue. Six countries were covered: Benin, Burkina Faso, Mali, Togo, Ghana and Guinea.
See also: The role and impact of savings mobilization in West Africa: A study of the informal and intermediary financial sectors, Volume 1,1999, available at: http://www.undp.org/sum/MicroSave/studies_raantome1.html
Federation of the Agricultural Savings and Credit Unions (FECECAM)
Taken from, "Federation of the Agricultural Savings and Credit Unions, Benin (Case Study)", 1999
By Christine Westercamp
Using the Federation of the Agricultural Savings and Credit Unions in Benin as a case study, this paper presents the findings of the Consultative Group to Assist the Poorest (CGAP) on savings mobilization.
The paper gives overview of the macroeconomic context of Benin, the financial sector, and the social and cultural context. It presents institutional analysis of FECECAM's (Federation of the Agricultural Savings and Credit Unions) network system, particularly of its characteristics, governance and organizational structures.
The study specifically looks at the characteristics of FECECAM's classic savings passbook account which contributes for the bulk of its savings mobilization. The author of the study concludes that confidence is the key factor in enabling this network's activities to grow and is based on: reputation and outreach of the network, accountability, democratic selection of managers, training of elected members of the network, and efficient inspection and supervision.
Also see:
Benin Country-Level Savings Assessment, CGAP, 2005
Microfinance in Africa: Experiance and lessons from Selected African Countries, 2004, by Basu, A., Blavu, R.& Yulek, M.
Savings Products and Services in the Informal Sector and Microfinance Institutions in West Africa: The Case of Mali and Benin, 2001, by Ouedraogo, A. & Kalala, J. P.
Reinventing Postal Savings Institutions in Africa: A New Role as Large-scale Microfinance Providers, 2005, by Kamewe, H.