The Minister of Finance ordered for the closure of about a hundred microfinance establishments who opened without approval last year. The affected included licenced microfinance companies that were engaging in activities unrelated to “the category” for which they were licenced.

A warning issued by the Ministry of Finance, Alamine Ousmane Mey, reveals that “some category 1 microfinance establishments are engaging in savings collection operations and loan granting with non-member third parties; activities that are regulated to be exclusively for category 2 microfinance establishments.

And in these operations, some others are having people make social contributions as if they are fees without explaining to them the real nature of these initial charges.”

500 microfinance establishments are currently operating in Cameroon and they officially represent 15% of the loans granted in the national financial sector which is improving the country’s banking rate because of their presence in rural areas.