Microfinance Cooperatives Network

		Sector : Small Enterprise Support Location : Yaoundé and Douala, Cameroon Local Partner : Mutuelles Camerounaises de Développement et de Crédit (MUCADEC) Start of Partnership : 1998

Context and Considerations

To contend with the economic crisis which started in the 1990s, many Cameroonians creates small businesses and craft workshops. Today, the informal sector is a core element of the country’s economy, providing for half the jobs at least. However development policies have failed to consider micro and small entrepreneurs specific needs and potential.

Solution Proposed

Since 2005, the IECD has been associated with the Centre International du Crédit Mutuel (CICM) in order to develop and strengthen a credit and savings co-operative network. Now called MUCADEC (Mutuelles Camerounaises de Développement et de Crédit), the network provides safe saving schemes and easier credit access; it creates regional credit desks managed by the co-operators themselves. Thanks to the MUCADEC programme, micro entrepreneurs can trust credit; they have the means to develop their enterprise.

Impact and Results

The network, with about 2.800 members and more than 500.000 Euros of handled savings, continues to grow, gaining experience and trust, notably from large-scale economic players, such as the 7 big markets of Yaounde and Douala.
A partnership convention has been signed with the MUCODEC, counterpart network in Congo Brazzaville (230.000 members in 2009). This partnership aims at increasing the exchange of expertise between the two cooperative networks. Besides, a financial contribution to the MUCADEC will stimulate future growth over the 2010-2014 period. Both the networks implement the solidarity principle which underlies mutualism.