Togo’s microfinance sector has expanded to serve nearly 4.7 million beneficiaries as authorities move to strengthen regulation and oversight of the fast-growing industry, Finance and Budget Minister Essowè Georges Barcola said.
The sector served more than 4.69 million clients as of December 2025, Barcola told lawmakers during a plenary session of the National Assembly of Togo on Tuesday.
He presented the figures while parliament examined a new law aimed at regulating microfinance institutions and aligning national legislation with regional financial rules.
According to the minister, deposits held by microfinance institutions reached 447.5 billion CFA francs (about $730 million), while the sector’s outstanding loan portfolio stood at 352.1 billion CFA francs.
Total assets in the industry exceeded 578 billion CFA francs, reflecting the growing importance of microfinance in expanding access to financial services across the country.
Microfinance institutions play a key role in providing savings accounts, credit and other financial services to households, artisans and small businesses that often lack access to traditional banking systems.
The services are particularly important in rural areas and underserved communities where formal financial infrastructure remains limited.
More than 140 microfinance institutions currently operate in Togo, including 63 affiliated with the Professional Association of Decentralized Financial Systems (APSFD), the sector’s main industry group.
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The sector is dominated by the Federation of Cooperative Savings and Credit Units of Togo (FUCEC-TOGO), which accounted for around 46 percent of total industry assets in 2024.
Other major institutions include COOPEC AD, COMEC, WAGES and CECA.
The latest figures highlight steady growth in the sector. By the end of 2024, microfinance institutions already served more than 4.45 million beneficiaries, with deposits exceeding 401 billion CFA francs and loan portfolios approaching 359 billion CFA francs.
Authorities say the new legislation aims to strengthen governance and improve oversight as the sector continues expanding.
The law incorporates into Togolese legislation a uniform regulatory framework adopted by the West African Monetary Union (WAMU) in December 2023.
The reform introduces stricter supervisory mechanisms and stronger consumer protection measures while tightening requirements aimed at preventing illicit financial activity.
Barcola said the law would require microfinance institutions to implement internal control systems and strengthen cooperation with financial regulators.
“No institution will be able to operate without internal control mechanisms, without joining credit information bureaus and without cooperating with the competent authorities to detect and prevent illicit financial flows,” the minister told lawmakers.
The new framework also strengthens anti-money laundering and counter-terrorism financing obligations in line with regional financial standards.
Authorities say the reforms are designed to enhance the stability and credibility of the sector while allowing microfinance institutions to continue supporting economic activity.
Microfinance has become a key pillar of financial inclusion across West Africa, helping small entrepreneurs access credit and build savings outside the traditional banking system.
In Togo, officials say the sector is expected to play an increasingly important role in financing micro-enterprises, supporting local commerce and expanding financial services to more citizens.
By strengthening regulation while maintaining access to credit, policymakers hope to ensure the microfinance sector remains a reliable engine for inclusive economic growth.
