Guilgal SA microfinance experienced a sharp increase in assets in 2024. According to its recently published Pillar III regulatory report, its assets reached 120.9 billion Congolese francs (approximately $48.36 million), compared with 71 billion CDF (around $28.4 million) in 2023, representing annual growth of 70%. This performance was mainly driven by the expansion of the loan portfolio, the institution's primary source of income.

Net loans outstanding rose from 56.3 billion CDF ($22.52 million) in 2023 to 103.6 billion CDF ($41.44 million) in 2024, an increase of 84%. Medium-term credit was the main driver of this growth, increasing by 132% over the period.

Customer deposits grew by 59%, reaching 46.5 billion CDF (approximately $18.6 million), reflecting a strengthened capacity to mobilize savings nationally. Shareholders' equity rose by 61% to 21.8 billion CDF (around $8.72 million), supported by fresh capital contributions and the incorporation of unappropriated earnings.

This dynamic growth was accompanied by significant pressure on asset quality. The report highlights a portfolio at risk of 20.5%, well above the industry standard of 5%, indicating a high proportion of loans not repaid on time and exposing the institution to increased credit loss risk.

Gross disputed receivables reached 21.5 billion CDF (approximately $8.6 million), with a provisioning rate of 24%. The report notes that this level of bad debts required a provision equivalent to 3% of assets.

Despite these challenges, performance indicators remained solid overall. Return on assets stood at 3.2%, in line with industry standards, while return on equity reached 17%, exceeding the internal target of 15%. In terms of liquidity, Guilgal SA achieved an immediate liquidity ratio of 24%, meeting regulatory requirements.

For 2025, Guilgal SA plans to continue digitizing its services, develop new financial products tailored to market needs, expand its network with new branch openings, and strengthen its commitment to social and environmental performance.

Founded on September 4, 2012, on the initiative of Professor Frédéric Kalala, COOPEC Guilgal initially operated as a savings and credit cooperative. Thanks to sustained performance, by 2019 it had become the largest cooperative in the western zone of the DRC and subsequently evolved into a microfinance company to overcome the limitations imposed by cooperative status.

Boaz Kabeya (intern)