Microfinance Institutions In Cameroon Research Articles

Capital structure and financial sustainability: stakes of microfinance institutions in Bamenda, Cameroon

This research assesses the effect of capital structure on the sustainability of Microfinance Institutions (MFIs) in Bamenda, Cameroon. We use panel data obtained from audited annual financial statements of fifteen (15) MFIs, comprising both member- and shareholder-owned MFIs in Bamenda, Cameroon from 2014 to 2020, and an ex-post facto causal research design. Debt, equity, grants, and retained earnings are used to capture capital structure, while Operational Self-Sufficiency is used as a proxy for sustainability. The Generalised Least Squares and the quantile-on-quantile techniques are used for data analysis. Our findings indicate a statistically significant negative relationship between debt, grants and financial sustainability of MFIs, while a statistically significant positive relationship is found between retained earnings and financial sustainability of MFIs. A positive, though statistically insignificant relationship is found between equity or share capital and MFI financial sustainability. The results are robust upon consideration of different quantiles. Based on the findings, MFIs in Cameroon should rely more on retained earnings and equity to be more financially sustainable. The findings additionally provide evidence relating to the shortcoming of grants in the financing of development initiatives.

Governance and Organisational Flexibility at the Junction of African MFIs’ Sustainability Issues

It is unfortunate to acknowledge the phenomenon of Africa’s Microfinance Institutions (MFIs) bankruptcies only a few years after their creation. The instability of technical, economic, commercial and cultural environments, which play an important role on MFI’s sustainability, explains this recurrence of bankruptcies. These crises, both in West and Central Africa, have highlighted the role of organisational flexibility in MFIs’ sustainability. This paper aims at examining the effects of flexible governance that contribute to Economic and Monetary Community of Central Africa’s (EMCCA) MFIs sustainability. In this regard, we have chosen qualitative method which is a multi-modal research including a naturalist interpretation approach emphasising on entities’ qualities. We have carried out semi-directive interviews among (14) MFIs in Cameroon, Congo, Gabon and Chad. We have made use of data collected with NVIVO to carry out content analysis process. The study’s results show that EMCCA’s MFIs sustainability is a matter of the flexibility of organisational dynamism of governance mechanisms, innovations and technological opportunities.

Sources of funding and sustainability of Microfinance institutions in Cameroon: an explanation using the pecking order theory

Sources of funding and sustainability of Microfinance institutions in Cameroon: an explanation using the pecking order theory

An appraisal of factors affecting sustainability of Microfinance Institutions in Cameroon

An appraisal of factors affecting sustainability of Microfinance Institutions in Cameroon

Loan officer gender and loan repayment performance. Evidence from greenfield microfinance institutions in Cameroon1

AbstractWe explore whether loan officer gender affects loan repayment performance in Cameroonian microfinance institutions (MFIs). After controlling for demand‐side factors (borrower characteristics), lending methodology, loan contract terms, year, and industry fixed effects, we apply a pooled probit model to a unique loan‐level dataset including more than 7000 loans approved between 2007 and 2012 by two Cameroonian commercial MFIs. We find that loans granted and monitored by male loan officers perform better than those granted by female officers and that loans approved under joint liability contracts and monitored by male loan officers are less likely to fall into arrears. Our findings also show that the performance advantage of male loan officers over female officers is confirmed only during bad times. Compared to female loan officers, male loan officers seem to intensify their monitoring efforts during a crisis period. The results are robust after controlling for selection bias and are less sensitive to a change in the loan repayment performance measurement.

Factors Affecting Default in the Loan Portfolio of Microfinance Institutions in Cameroon

The main objective of microfinance is to provide funds to those who are excluded from the banking system. But in order to attain this objective they have to deal with the issue of default in their loan portfolios. The aim of this paper is to analysis the factors that affect the default of borrowers in microfinance institutions. The discriminant analysis reveals that 96.6% of the bad borrowers are correctly classified and 92.1% of the good borrowers are correctly classified and that other debts, age of borrower, borrowers income and number of dependents significantly affect the likelihood of default. We suggest that credit officers in microfinance institutions should be keen on these factors when granting loans.

Incentives Factors for the Performance of Microfinance Institutions in Cameroon

Incentives Factors for the Performance of Microfinance Institutions in Cameroon

Ownership Forms and Costs of Operations of Microfinance Institutions in Cameroon

Ownership Forms and Costs of Operations of Microfinance Institutions in Cameroon

The Impact of Internal Marketing on Customer Satisfaction of Second-tier Microfinance Institutions in Cameroon

The purpose of this paper is to investigate the effect of internal marketing on customer satisfaction in the second-tier microfinance institutions in Cameroon. Specifically, in this paper, the role of three dimensions of internal marketing on customer satisfaction is empirically examined. Hypotheses are developed based on the literature review. The conceptual model is tested using the structural equations modeling (SEM) with STATA 14 on survey data collected from 372 customers and 60 employees of second-tier microfinance institutions in Cameroon. The results indicate that two dimensions of internal marketing (rewards and training/development) have a positive and significant effect on customer satisfaction. The effect of vision on customer satisfaction is positive but non-significant.

The Impact of Human Resource Management (HRM) Practices on Graduate Volunteer Performance: A Case Study of Microfinance Institutions in Cameroon

With the present expansion of the global market and its related factors, most organizations are faced with the challenge of ensuring their business processes are efficient and well performing. The implication of this expansion is that managers will have to recruit highly skilled personnel to bridge the gap caused by this globalization by investing more human resources to strategically put the organization in a competitive lead. This study is aimed at analyzing the impact of HRM practices on graduate volunteer performance, a case study of Microfinance institutions in Cameroon. This study presents an overview of how the said HRM practices (performance appraisal, training & development and motivation & compensation) could improve or have an impact on the performance of graduate volunteers in an organization, in order for them to eventually achieve their goals and objectives as graduate volunteers while conveying beneficial outcome for both volunteers and the organization thereby enhancing performance. We used a closed-ended questionnaire for our data collection and IBM SPSS 25.0 was used for the analysis. A total of 240 questionnaires were used for the analysis. The results revealed that motivation & compensation have a greater impact on graduate volunteer performance with a significant beta (β) coefficient of 0.388. The analysis also revealed that all variables in the model are significantly moderated positively. Further analysis shows that the independent variables (performance appraisal, training & development and motivation & compensation) are significant predictors of the dependent variable (graduate volunteer performance). This research work adds to the already existing literature in human resource management studies and can be used as a framework for evaluating the performance of employees, volunteers and the company in the long term and also help organizations to select and implement appropriate HRM practices to enable graduate volunteers to achieve their objectives. Future research may involve extending the scope of the study and also increasing the number of variables under the human resource management practices.

Microfinance Survival: The Impact of Credit Management on the Sustainability of Micro Finance Institutions in Cameroon

Just as there is rapid growth of Microfinance institutions in Cameroon, there is an alarming rate of bankruptcy, and consequently closure by these institutions. The prevalence of numerous closures of long time well-known microfinance institutions in Cameroon serves as the impetus for this research in an effort to seek and find the main cause of these closures. The credit management process was seen as the major cause of most of these sudden closures due to poor loan portfolio management. In 2014, Cameroon had 500 microfinance institutions and by 2015 only 418 microfinance institutions were listed (CRTV 2015). Renowned microfinance institutions left a huge clientele financially incapacitated due to their unexpected bankruptcy and closure. This research selected one highly rated functioning microfinance institution to find out the lapses in the credit management process. Data was collected using questionnaires, direct observation and secondary data. Data analysis is descriptive. Results show that there were a good number of lapses like: high provision, poor recovery procedure, credit officers without an educational background in the field, manual execution of some loans, slow credit management processes, bad faith of customers and poor follow up of loans given out. Key Words: Credit Management, Microfinance Institution (MFI), Recovery Procedure, Lender, Borrower, Bad debt, Doubtful debt, Microcredit DOI : 10.7176/HRL/50-05 Publication date: December 31 st 2019

Cobac Control Measures On The Performance Of Mfis

Globally, the emergence of MFIS presents an unprecedented opportunity to extend financial services to the vast majority of the population. In Cameroon, MFIs and banks are governed by a series of enactments (conventions, laws, ordinance, presidential decrees, ministerial orders and circulars). Cobac control measures are becoming increasingly important to the performance of microfinance institutions in Cameroon. This measures seems to be indispensible for customer satisfaction as a measure of performance. We therefore set out to verify the level to which these measures influence the performance of microfinancial institutions. Data was collected from 160 respondents in the northwest and littoral regions in Cameroon. Measures of dispersion were studied including inferential statistics in terms of person correlation, test of hypothesis, analysis of variance, chi square. Our results show that COBAC control measures positively influence the performance of MFIs. Thus MFIs should re-enforce the implementation of COBAC control measures instead of considering them as threats

Microfinance accountability in Cameroon: a cure or a curse for poverty alleviation?

PurposeThe purpose of this study is to use empirical findings to identify the different forms of accountability practices existing in Cameroon microfinance institutions (MFIs) and explore how such practices have evolved and institutionalised within the microfinance sector in Cameroon through time.Design/methodology/approachThis study is designed to investigate if the institutionalised accountability practices within the microfinance sector in Cameroon are a cure or a curse for poverty alleviation. This study is based on the new institutional sociology (NIS) and on a case study approach and combines in-depth interviews and secondary data sources.FindingsThis study identifies three principal forms of accountability practices common with MFIs in Cameroon: dysfunctional, manipulative and dribbling accountabilities.Originality/valueThis paper is novel because it extends the NIS into the microfinance sector and explains how conflicting institutional pressures resulting from differences of accountability practices can be resolved and also exposes the unintended consequences of both resistance and passive actions of local actors on microfinance, the poor and poverty alleviation.

Determinants of Sustainability: an objective Indispensable for Micro Finance Institutions in Cameroon

Determinants of Sustainability: an objective Indispensable for Micro Finance Institutions in Cameroon

Governance of microfinance institutions (MFIs) in Cameroon: what lessons can we learn?

The aim of this paper is to find out the effects of the COBAC regulations regulating the microfinance industry on the governance of microfinance institutions (MFIs) in Cameroon. The paper is based on 35 in-depth interviews carried out from May to June 2011 and June to July 2012 with managers and accountants from MFIs in Cameroon, MFI clients and non-clients, regulatory authorities in the Ministry of Finance, and accounting professionals. The findings show that the regulations have broken down the governance within the MFIs in Cameroon thus turning MFIs into hybrid organizations with managers striving to meet their shareholders’ interests.

Outreach and performance analysis of microfinance institutions in Cameroon

Since people with low incomes do not have access to financial institutions, and in most developing countries only public workers benefit from the services of public banks, the poor and private workers with low incomes cannot borrow from these public banks. Hence, microfinancial institutions (MFIs) have become the answer to those who cannot benefit from the financial services of the public banks. This study compares the performance and outreach aspect of the MFIs in Cameroon against the African benchmark. Furthermore, it investigates if there is a trade-off between performance and outreach. A total of six selected MFIs with branches all over Cameroon were chosen for this study. Using the difference of mean test, the findings of the study revealed that generally, the MFIs in Cameroon implemented a low cost strategy and are heavily exposed to default risk. We also concluded a trade-off between the performance and outreach factors. MFIs in Cameroon are more focused on making profits, instead of reaching out to the poorest of the poor in the communities.

The Microfinance Market of Cameroon - Analyzing Trends and Current Development

The Microfinance Market of Cameroon - Analyzing Trends and Current Development