Togo Microfinance Association: APSFD-Togo Rebrands; Romaric Dossou Chairman

• Togo's microfinance association, formerly APSFD-Togo, has rebranded as APIM-Togo following an approval on October 30, 2026, in Kpalimé.
• Romaric Lissanon Dossou, CEO of Millénium Microfinance, was elected chairman of the board for a two-year term, succeeding Kokou Gabiam.
• The microfinance sector expanded in 2025, reaching 4.69 million clients and 444 billion CFA francs in deposits.
• Despite growth, the gross portfolio-at-risk ratio surged to 6.7% in 2025, significantly exceeding the 3% regulatory ceiling.
• The new leadership is tasked with supporting digital adoption and guiding institutions to meet tighter regulatory requirements adopted in March 2026.

This figure is more than double the established regulatory ceiling of 3%, highlighting a substantial and growing concern regarding the financial health and stability of many microfinance institutions in Togo.

The professional body representing Togo's decentralized financial institutions, previously known as the Association professionnelle des systèmes financiers décentralisés (APSFD-Togo), has officially rebranded as the Association professionnelle des institutions de microfinance (APIM-Togo). This significant change was formally approved during a general assembly held in Kpalimé on October 30, 2026. The rebranding reflects an evolving landscape for Togo's microfinance sector, which is currently navigating both stricter regulatory frameworks and increasing challenges related to loan repayment.

Concurrent with the name change, the association also elected new leadership to guide it through these pivotal times. Romaric Lissanon Dossou, who serves as the CEO of Millénium Microfinance, was appointed chairman of the board for a two-year term. He assumes this role following the four-year tenure of his predecessor, Kokou Gabiam, marking a new chapter for the organization as it addresses the sector's pressing issues.

Despite the operational hurdles, Togo's microfinance sector demonstrated continued expansion throughout 2025. Data presented at the recent general meeting indicated a notable increase in its reach, with the total number of clients and beneficiaries growing to 4.69 million, an uplift from 4.45 million recorded in 2024. Financial inflows also showed strength, as deposits within the sector reached an impressive 444 billion CFA francs, while the total outstanding loans amounted to 358 billion CFA francs. The industry's infrastructure remains robust, comprising 155 licensed institutions operating through an extensive network of 632 branches and service outlets across the nation.

However, this growth has been accompanied by a significant deterioration in loan repayment performance. Even as deposits have risen, the challenge of recovering outstanding loans has intensified. A critical indicator, the gross portfolio-at-risk ratio, surged to 6.7% in 2025. This figure is more than double the established regulatory ceiling of 3%, highlighting a substantial and growing concern regarding the financial health and stability of many microfinance institutions in Togo.

The shift in the association's identity and leadership occurs against a backdrop of a more stringent regulatory environment. Togo enacted new legislation in March 2026, introducing tighter requirements for the microfinance sector. This legislative update aims to bolster the stability and accountability of decentralized financial institutions, particularly in light of the escalating portfolio-at-risk figures. The new APIM-Togo leadership, under Chairman Romaric Lissanon Dossou, faces the crucial task of ensuring its members not only adapt to but also thrive within these updated frameworks.

A primary responsibility of the newly elected board will be to facilitate the adoption of digital technologies across the sector, enhancing efficiency and outreach. Crucially, the leadership is mandated to assist microfinance institutions in meeting the more rigorous regulatory standards now in effect. This includes providing guidance on compliance with prudential standards and strategies for improving loan recovery, which are vital for mitigating the high portfolio-at-risk and ensuring the long-term sustainability of Togo's microfinance industry.

Lawyers advising microfinance institutions in Togo should be aware of the new regulatory requirements adopted in March 2026 and engage with the newly named APIM-Togo for guidance on compliance, particularly concerning loan recovery and prudential standards given the rising portfolio-at-risk.

Source: Original reporting via MicroCapital