Africa-Press – Cape verde. Microfinance institutions (MFIs) in the country continue to play a central role in promoting financial inclusion and recorded 6% growth in the sector’s total assets last year. However, they recorded a 25% decrease in net income compared to 2023.
The data comes from the Bank of Cape Verde (BCV) report on the activities and results of the microfinance sector. The aggregate analysis for 2024 includes data from only five institutions, while the 2023 report included six institutions.
According to this report, between 2023 and 2024, the sector recorded growth across all key variables.
Therefore, the number of active clients increased by 8.9 percent, the loan portfolio grew by 11.7 percent, deposits/savings registered a significant increase of 36.5 percent, and the number of depositors increased by 4.9 percent.
Microfinance’s share in 2024 was expected to be 0.53% of Gross Domestic Product (GDP) and 0.39% of the total assets of the national financial system.
Regarding the offering of financial products, there continues to be limited diversification, with a clear predominance of microcredit. Three institutions together account for approximately 85 percent of the loan portfolio. Credit to the trade and services sectors represented 41.17 percent of the total gross portfolio.
The target audience for MFIs continues to be low-income populations with entrepreneurial profiles, dedicated to income-generating activities.
Digitalization stands out as a strategic opportunity for microfinance institutions, enabling greater operational efficiency and expanding access to financial services.
Among the most impactful digital solutions are: digital wallets, mobile money, online loans, automated credit assessment, digital loan portfolio management, and digital financial education platforms.
Therefore, in the coming years, the BCV expects the sector to advance not only in the adoption of digital tools, but also in the integration of emerging technologies, which will contribute to more efficient supervision, improved institutional performance, and expanded financial inclusion in the country.
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