Federation of the Agricultural Savings and Credit Unions, Benin (Case Study)

This case study of Federation of the Agricultural Savings and Credit Unions (FECECAM) in Benin analyzes the institutional characteristics of FECECAM. It outlines FECECAM's governance structure, organization, savings products, technology, management capabilities, and regulatory and supervisory framework. The study also provides a cost analysis of FECECAM's savings mobilization.

The paper states that FECECAM is the second largest lending institution in Benin. It reached 211,000 members as of 30 September 1997, through a network of 110 retail outlets spread all over the country. FECECAM is attempting to develop cooperation with more decentralized networks, in order to increase its proximity to previously unserved clients such as women, and business start-ups. FECECAM is, however, experiencing difficulties in evaluating the soundness of existing Direct Financial Systems. Constraints to developing FECECAM's network include fraud and embezzlement, and periods of liquidity shortages. FECECAM's confidence has helped it to grow, and is based on:

• Size and reputation;
• Regularly held general assemblies that guarantee transparent management;
• Open elections of network officers;
• Knowledge of elected members;
• Efficient inspection and supervision;
• Physical security;
• Training for elected members.