• Deposits grow 2.7%, supporting lending recovery
• Average loan sizes small, credit risk persists

Loans granted by Togolese microfinance institutions rose by 8.4 billion CFA francs at the end of September 2025, up 2.4%, according to data from the Central Bank of West African States (BCEAO).

The increase marks a recovery after a weaker second quarter, when outstanding credit fell by 7 billion CFA francs, a quarterly contraction of 1.9%. The rebound comes alongside growth in deposits, with microfinance institutions recording simultaneous increases in both lending and savings.

Rising savings

Outstanding deposits collected by Togolese microfinance institutions increased by 12.1 billion CFA francs in the third quarter, a rise of 2.7%.

This performance places Togo among the contributors to regional deposit growth, behind Senegal and Côte d’Ivoire but ahead of Mali and Niger. Across the West African Monetary Union (WAMU), total outstanding deposits reached 2,731.6 billion CFA francs at the end of September 2025, up 11.1% year on year.

Deposit collection in Togo remained stable between the second and third quarters. After rising by 11.9 billion CFA francs, or 2.7%, in the second quarter, deposits grew by a similar amount in the third quarter, keeping growth steady. This reflects continued savings momentum despite a mixed regional environment.

Microfinance institutions play a central role in providing financial services to a large share of the population, particularly households and small-scale economic activities. However, average amounts remain modest. According to the BCEAO, deposits and loans per client remain below 140,000 CFA francs at the regional level. Credit risk also remains a concern. One Togolese microfinance institution was placed under provisional administration at the end of September 2025.

Ayi Renaud Dossavi