Togo’s microfinance sector recorded mixed results in the first quarter of 2025. Deposits collected by decentralized financial systems rose by 22.9 billion FCFA, up 5.5% to about 436 billion FCFA.
Year-on-year, deposits grew nearly 9%, showing stronger public confidence in microfinance institutions. Most deposits remain sight deposits at 57.3%, while term deposits stand at 22.5%. The average savings per customer reached 129,898 FCFA, slightly higher than in December. However, outstanding loans fell by 20 billion FCFA, a 5.2% decline compared to the previous quarter. The sector’s non-performing loan rate is now close to 10%, far above the 3% prudential norm.
Analysts note the contrast between rising savings and shrinking credit, a concern for households and small businesses.
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