CGAP  
 

Spotlight on: SUB-SAHARAN AFRICA

An overview of microfinance laws/regulations and other regulation affecting microfinance activity and microfinance institutions in sub-Saharan Africa.

CGAP has released a document that provides a concise overview of laws and regulations affecting microfinance activity in Sub-Saharan Africa (SSA).  The document analyzes each of the following topics:

  • How microfinance activity is regulated (through a specialized law; through other existing financial sector legislation; or not at all);
  • Whether regulation is tailored to the specific risk profile of microfinance activity;
  • Which agency is responsible for regulation and supervision of microfinance activity and microfinance institutions;
  • How financial cooperatives (also known as credit unions) are regulated;
  • Whether a legal framework governing money laundering and terrorist financing is in place;
  • What consumer protection laws exist (if any); and
  • Whether interest rate ceilings on loans and minimum interest rates on deposits have been mandated.
UPDATE:  Malawi should be added to the list of countries in which a specialized microfinance law has been drafted.  The proposed law had been submitted to Parliament and was still awaiting approval as of Dec. 2008.

The document is available here.

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