Celebrating 5 years of FPM SA
Five years of existence, five years of financial services offered to financial institutions, the FPM SA, Fund for Financial Inclusion in DR Congo through the refinancing of financial institutions whose main target is MSMEs, organized last September 27, two events including a workshop on the promotion of financial inclusion in DR Congo and a dinner party.
In the morning, two highlights marked the workshop, namely the panel on “Financial inclusion in DR Congo, 10 years later: Macroeconomic overview and social impact” led by the technical advisor of FPM SA (Incofin IM), IFC (SFI), the Central Bank of Congo, ANIMF (National Association of Microfinance Institutions in the DRC), the ACB (Congolese Association of Banks) and the technical assistance vehicle of FPM namely, FPM ASBL. The second panel focused on the theme of “Refinancing Micros, Small and Medium Enterprises: 5 years of FPM SA, Balance Sheet and Outlook“. Three financial institutions were invited as panelists: Equity Bank, Afriland Bank and SMICO SA; the Ministry of SMEs represented by the CEO of OPEC, as well as FPM SA, the organizer.
The Managing Director of FPM SA was the first to speak for his words of circumstance in the presence of the representative of the Minister of SMEs, the Vice-Governor of the Central Bank of Congo, the President of the Board of Directors of FPM SA, representatives of the donors and the Directors General of different financial institutions operating in the Democratic Republic of the Congo.
From the outset, the CEO of FPM SA recalled the mission of FPM: “FPM is a multi-donor fund with the ultimate goal of reducing poverty and improving the living conditions of the people in DR Congo. To do this, it aims to support the construction and development of an inclusive and accountable financial system. ” He presented the highlights of FPM since 2010 to date and the motivations that drove German cooperation / KfW, Cordaid, Bio and INCOFIN CVSO to set up this refinancing vehicle in 2014. Based on a share capital of 20 000 USD to its creation, FPM SA to date has 36 million USD of commitments and 23.4 million USD of registered capital.
In a review of its activities, the CEO said that since 2010, FPM has initiated 179 technical assistance projects for a volume of nearly 15 million US and has disbursed $ 42 million in funding for small and medium companies. To date, he said, FPM SA has outstanding credit of 27 million USD.
Recalling that the Congolese financial sector had nearly 100,000 bank accounts in 1999 and that by the end of 2018 it had close to 18 million including mobile accounts.
However, did he wonder, despite the developments and modernisation of financial services over the last ten years, what about their use? What about their accessibility? What about their appropriation? ». It is through these questions that the Executive Director of FPM SA concluded his occasional address, leaving the participants in this workshop the opportunity to shed more light on it.
For her part, the Chairwoman of the Board of Directors of FPM SA, Claudia Huber, began by recalling the history of FPM SA, which includes that of FPM ASBL. She then thanked the German Cooperation which was the driving force behind the creation of FPM SA with other founding shareholders Bio, Cordaid, Incofin CVSO for their support.
“In five years, the FPM SA has developed its credit portfolio of more than USD 27 million invested in 10 financial institutions in the DRC,” said the PCA before welcoming the fact that the FPM SA has reached break-even since 2018 in economic circumstances that were not always easy, she recalled.
According to President Claudia Huber, the level of financial inclusion in DR Congo has taken a major step forward over the past 10 years.
Concluding her speech, she indicated that together with the sister vehicle, FPM ASBL, financial institutions will continue to benefit from FPM ASBL support for MSMEs.
Speaking, Mr. Jules BONDOMBE ASSANGO, Deputy Governor of the Central Bank of Congo, stressed that the situation of the Congolese financial system, notes, at first glance, that the supply of financial services in the Democratic Republic of Congo is ensured by: “Seventeen (17) commercial banks in operation, one (1) savings bank, two (2) central savings and credit cooperatives,, eighty (80) primary savings and credit cooperatives, twenty-one (21) Microfinance Institutions, three (3) specialized financial institutions mainly public, five (5) financial companies, including four (4) E-money Issuing Institutions and FPM SA, seventy-nine (79) financial couriers and thirty-two (32) approved exchange offices“.
However, the Deputy Governor noted that the supply of financial services is still strongly correlated with location, with people living in major urban centers being more favored than those in remote rural areas, and at the income level, the poorest are generally excluded from the system “.
Despite these advances in the banking sector, the DR Congo has a low level of banking and, as a result, the rate of financial inclusion which would be close to 15%.
Concluding his remarks, the Vice-Governor of the BCC is of the opinion that the growth potential of the financial activity remains important in the DR Congo.
This celebration ended in the evening at KEMPINSKI Hotel with a dinner offered to different partners and guests.