Question 1

What is MECAP?

Accepted Answer

MECAP (Mutuelle d'Epargne et de Crédit des Agents du Secteur Public et Parapublic) is a microfinance institution in Senegal that specializes in providing financial services exclusively to public sector and parapublic sector employees. As a credit union-style mutual organization, MECAP operates under the supervision of the Commission Bancaire de l'UMOA and is classified as a large-scale decentralized financial system (Système Financier Décentralisé).

MECAP was established to combat usury and over-indebtedness among government workers. The institution serves civil servants, employees of national companies, and other public sector workers throughout Senegal.

Question 2

When was MECAP founded?

Accepted Answer

MECAP was founded on December 23, 2000, following a Constitutive General Assembly held at the Hôtel Indépendance in Dakar. The institution was created under the direction of the President of Senegal, who expressed concern about the economic and social situation of public sector workers.

The initiative was launched by LA POSTE (the Senegalese postal service), which was tasked by the State to lead reflection on creating an instrument to address usury and over-indebtedness in the public sector. LA POSTE provided significant support during the establishment phase, including initial funding from the State, network access, and human and material resources.

Question 3

Where is MECAP headquartered?

Accepted Answer

MECAP is headquartered in Dakar, Senegal, with its main office located at Ouest Foire Mame Rane. The administrative address is Avenue Malick SY et Ferdherbe, Face polyclinique, Médina, BP 14123 Dakar.

Question 4

Where does MECAP operate?

Accepted Answer

MECAP operates throughout Senegal with a network of service points in major cities and regions. The institution has functional service points in Thiès, Ziguinchor, Saint Louis, Kolda, Kaolack, Tambacounda, Mbour, Rufisque, Ourossogui, and Bignona.

In addition to its own network, MECAP leverages the entire postal network (réseau postal) across Senegal. This partnership with LA POSTE significantly extends the institution's reach to remote and rural areas.

Question 5

What services does MECAP offer?

Accepted Answer

MECAP provides a comprehensive range of savings and credit products tailored to the needs of public sector employees:

Savings Products:
• Retirement Savings (Épargne Retraite): Mandatory for all members with no withdrawals permitted before retirement
• Provident Savings (Épargne Prévoyance): Demand deposit accounts allowing flexible access
• Blocked Savings (Épargne Bloquée): Term deposits with minimum 3-month blocking periods
• Project Savings Plan (Plan Épargne Projet): Targeted savings for specific goals
• Equipment Savings Plan (Plan Épargne Équipement): Long-term savings linked to equipment financing

Credit Products:
• Emergency Loans (Crédit Dépannage): Short-term loans for immediate needs
• Event Loans (Crédit Événementiel): Financing for religious holidays and school openings (Tabaski, Korité, Easter, Christmas)
• Equipment Loans (Crédit Équipement): Medium-term financing for furniture and household equipment
• Urgency Loans (Crédit Urgence): Medium or long-term loans for emergencies (health, education, legal matters)
• Cash Confort Loans (3C): Long-term loans for land acquisition, housing construction, vehicle purchase, and equipment
• Income-Generating Activity Loans (Crédit AGR): Short-term credit for micro-entrepreneurs including commerce, agriculture, fishing, and artisan activities
• Debt Buyout/Consolidation (Rachat de Dette): Assistance with managing existing debt obligations
• Ganalé Loans: Marketing-oriented short-term credit available immediately upon membership

Question 6

What makes MECAP unique?

Accepted Answer

MECAP is distinguished by its exclusive focus on public sector workers, addressing the specific financial challenges faced by civil servants and parapublic employees. The institution was created with explicit government backing to combat predatory lending and over-indebtedness.

The mutual structure ensures democratic governance through elected bodies including the General Assembly, Board of Directors (12 members), Credit Committee (12 members), and Supervisory Board (12 members). Members directly participate in institutional decision-making.

MECAP's partnership with LA POSTE provides exceptional geographic reach, enabling members to access services through postal offices nationwide. This hybrid network model makes financial services accessible even in remote areas where traditional banks rarely operate.

The institution's mission explicitly includes promoting the economic, social, and moral balance of its members, reflecting a holistic approach to financial wellness beyond simple product delivery.

Question 7

What type of financial institution is MECAP?

Accepted Answer

MECAP is a Mutuelle d'Épargne et de Crédit (Savings and Credit Mutual), which is the Senegalese equivalent of a credit union or cooperative financial institution. In Senegal's regulatory framework, MECAP is classified as a Système Financier Décentralisé (SFD) or Decentralized Financial System of large size.

As a mutual institution, MECAP is member-owned and governed democratically by its members. It operates under the regulatory supervision of the Commission Bancaire de l'UMOA (West African Economic and Monetary Union Banking Commission), which oversees microfinance institutions across the WAEMU zone.

MECAP falls under Article 44 of the law governing SFDs in the UMOA, designating it as one of the principal microfinance institutions in Senegal. The institution employs approximately 60 technical staff members across various departments including operations, finance, human resources, recovery, audit, information systems, compliance, and commercial services.

MECAP

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About MECAP in Senegal