Guilgal SA, a Congolese microfinance institution, sharply expanded its medium-term lending in 2025. According to its 2025 Pillar III Report, the outstanding balance in that loan category reached 58 billion Congolese francs at end-December, up from 34 billion a year earlier, a gain of 70.8%.

The increase added more than 24 billion francs to medium-term balances over the year, confirming a shift in the institution's portfolio toward longer maturities. That shift was the primary driver of overall loan portfolio growth.

Short-term lending, meanwhile, fell 24% to 39.7 billion francs. The contrasting trends altered the composition of Guilgal's credit book: in 2024, medium-term loans accounted for roughly 40% of combined short- and medium-term credit; by end-2025, they surpassed short-term loans in share.

The shift toward longer maturities coincided with a rise in average loan size. Outstanding credit per borrower climbed from 2.83 million to 3.57 million francs between 2024 and 2025. The number of borrowers rose 5.4% to 29,764 clients at end-December.

Credit risk

The portfolio expansion came as asset quality remained a concern. The portfolio at risk beyond 30 days, or PAR30, stood at 5.5% at end-2025, up from 3.9% a year earlier, slightly above the 5% benchmark cited in the report.

The picture was mixed. Overdue receivables fell 40%, from 21.5 billion francs in 2024 to 12.9 billion in 2025. The portfolio at risk beyond one day, or PAR1, also declined, from 20.5% to 11.9%.

The rise in the PAR30 ratio, however, showed that the most persistent repayment delays had yet to be fully addressed. Despite the decline in problem loans, some portfolio quality indicators remained above reference thresholds.

The report flagged two areas of concern for 2025: the PAR30 ratio and the loan write-off rate. The institution said it had implemented corrective measures through a dedicated strategic plan and had incorporated those risks into its business continuity plan.

Network expansion

That vigilance takes on added importance given that Guilgal is continuing to expand. To support business growth, the institution broadened its network with the opening of branches in Boma and Moanda, as well as service points in Lufu, in Kongo Central province, and at Rond-point Huileries in Kinshasa.

Staffing also increased. Guilgal's workforce grew from 512 to 670 employees over the year, a rise of 30.9%. The number of loan officers expanded from 203 to 251, strengthening loan disbursement and monitoring capacity.

The expansion was supported by a broader resource base. Medium- and long-term borrowings rose 22.6% to 55.4 billion francs, while guarantee and financing facilities grew by nearly 50% to 8.5 billion francs.

The challenge for Guilgal will be to sustain portfolio growth, particularly in medium-term maturities, while keeping credit risk in check. The surge in medium-term lending points to a more ambitious expansion strategy, but the PAR30 level is a reminder that such growth will need to remain tightly managed.

Boaz Kabeya