Microenterprise stock-taking : Cameroon

This field study looks at the cooperative to assess why the movement has been so successful in mobilizing savings and the extent to which CamCCUL is involved in microenterprise lending. Several factors have influenced the successful operation of CamCCUL. (1) CamCCUL serves real market with real needs, is an appropriate fit with the local cultural and social environment, and has a sound lending philosophy. (2) CamCCUL and the credit union movement are long-term in their nature and focus. (3) External donors did not capitalize and have not been extensively involved with CamCCUL. (4) CamCCUL is dedicated to providing long-term staff training and development, and has made only modest investments in non-income producing overhead assets. Nine major lessons were learned. (1) Successful rural credit programs mobilize local financial resources and do not depend on external capitalization by one or two major donors. (2) Credit programs should make loans at market rates or rates that can support the lending institution and should not try to direct economic activity. (3) Strong local leadership plays an important role and is essential to the success of building a local institution. (6) An institution has a greater chance of success if it fits well with the local cultural and social environment. (7) Institution building programs are successful only over the long run. (8) Rural credit unions can effectively provide credit to microenterprises.