Question 1

What is PEBCo-BETHESDA?

Accepted Answer

PEBCo-BETHESDA (Association pour la Promotion de l'Epargne-Crédit à Base Communautaire BETHESDA) is a decentralized financial system and microfinance institution operating in Benin. It is the largest microfinance association in the country, regulated as a Tier 2 financial institution by the Central Bank of West African States (BCEAO).

The institution specializes in providing financial services to low-income populations, small-scale producers, and agricultural micro, small, and medium-sized enterprises (MSMEs). As of 2024, PEBCo-BETHESDA operates 60 agencies across nine regions of Benin, covering 54 out of 77 municipalities with a geographic coverage rate of 74.03%.

Question 2

When was PEBCo-BETHESDA founded?

Accepted Answer

PEBCo-BETHESDA's origins trace back to 1990 when the BETHESDA NGO was created by 24 Protestant and Evangelical churches in Benin during a severe socio-economic crisis. The NGO initially focused on health services.

In 1995, the Community and Environmental Sanitation Department (DCAM) of BETHESDA NGO began preparatory activities to support income-generating activities through microfinance. From 1995 to 2013, microfinance activities were managed as a project within the NGO.

In May 2013, to achieve progressive autonomy and comply with regulations governing decentralized financial systems (SFD), the microfinance division was separated into an independent regulated entity called "Promotion de l'Epargne-Crédit à Base Communautaire-BETHESDA" (PEBCo-BETHESDA). The institution was formally registered as a microfinance association in 1996 and received official authorization under registration number A.14.0048.L on January 24, 2014.

Question 3

Where is PEBCo-BETHESDA headquartered?

Accepted Answer

PEBCo-BETHESDA is headquartered in Cotonou, the largest city and economic capital of Benin. The institution's governance structure includes the General Assembly, Board of Directors, and General Management, which oversees operations across the country.

Question 4

Where does PEBCo-BETHESDA operate?

Accepted Answer

PEBCo-BETHESDA operates throughout all twelve departments of Benin, serving both urban and rural areas. The institution maintains 60 agencies distributed across nine regions of the country, covering 54 of Benin's 77 municipalities.

The geographic footprint spans both southern and northern regions, including areas in the Couffo department (such as Azové and Klouékanmey) and extends to peri-urban areas across the country. Approximately 51% of the clientele is located in urban areas, while 49% is in rural areas.

Question 5

What services does PEBCo-BETHESDA offer?

Accepted Answer

PEBCo-BETHESDA provides a comprehensive range of financial and non-financial services:

Financial Services:
• Savings and deposit accounts
• Short and medium-term microcredit (typical loans of 12-18 months, with plans to extend to 4 years)
• Agricultural loans for seeds, fertilizers, and mechanization
• Education loans
• Working capital loans for agri-MSMEs
• Loans for solar panel kit acquisition
• Agro-processing financing

Non-Financial Services:
• Financial literacy and education training
• Capacity building for client groups
• Training on sustainable production tools
• Client management and financial management training
• The PEBCo-BETHESDA card program offering discounts at local partner merchants
• Technical assistance for small-scale producers

The institution partners with international organizations including IFAD, GRAMEEN, OIKOCREDIT, and potentially AgriFI (EDFI). As of 2024, PEBCo-BETHESDA was working with IFAD on a EUR 3 million loan project to expand agricultural financing and improve access to tailored financial products for women and producers.

Question 6

What makes PEBCo-BETHESDA unique?

Accepted Answer

PEBCo-BETHESDA distinguishes itself through its faith-based community origins and strong social mission. The institution is owned by member churches of the Christian Organization for Community Development (OCDC), the Council of Protestant and Evangelical Churches of Benin (CEPEB), and the BETHESDA NGO.

Its unique characteristics include:

Social Focus: Approximately 72% of borrowers are women, and 40% of clients are classified as rural poor. The institution's mission is to "improve the living conditions of the poor by offering quality financial and non-financial services."

Community-Based Model: PEBCo-BETHESDA partners with local producer platforms and community organizations to reach clients, reducing traditional client acquisition costs.

Loyalty Card Program: The PEBCo-BETHESDA card provides clients with discounts at local merchants while supporting the local economy and small businesses, creating a win-win partnership model.

Strong Rural Penetration: With 57.7% of clients in rural areas (as of recent data), the institution maintains deeper rural reach than many traditional financial institutions in Benin.

Comprehensive Support Approach: Beyond financial services, PEBCo-BETHESDA invests in client education through alphabetization programs and financial literacy training, addressing barriers to financial inclusion.

Question 7

What type of financial institution is PEBCo-BETHESDA?

Accepted Answer

PEBCo-BETHESDA is classified as a Système Financier Décentralisé (SFD) or Decentralized Financial System, which is the official designation for microfinance institutions in the West African Economic and Monetary Union (WAEMU) region. Specifically, it is registered as a Tier 2 microfinance institution.

As an SFD, PEBCo-BETHESDA is regulated by the Central Bank of West African States (BCEAO), the Ministry of Economy, and the Banking Commission of UMOA (Union Monétaire Ouest-Africaine). It operates as an autonomous association with legal personality, which is a common legal structure for community-based microfinance institutions in Benin.

This classification allows PEBCo-BETHESDA to provide financial services primarily to individuals and small businesses who do not have access to traditional banking services, while being subject to regulatory oversight that ensures financial stability and client protection.

PEBCo-BETHESDA

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About PEBCo-BETHESDA in Benin

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