Microfinance trends show expansion in Tunisia and debt challenges in Madagascar

In Tunisia, the microfinance sector has demonstrated robust growth and improved stability. According to data from the ACM, the number of active clients reached 858,266 by the end of the first quarter of 2026, with a total portfolio outstanding of 3,039 million dinars. The consolidated PAR 30 rate improved to 2.99% as of March 31, 2026, down from 3.79% in March 2025. Regulatory measures are in place to prevent abusive lending, requiring microfinance institutions to refund sums collected via interest rates exceeding the sector average.

In Madagascar, household debt is increasingly driven by necessity rather than development. INSTAT statistics indicate that 40% of households use their most recent credit for daily consumption, significantly higher than spending on business startups (11.5%) or education (7.4%). A large portion of borrowing occurs through informal channels, with 57.7% of loans coming from other households. In rural areas, private loans account for 64.8% of credit, often involving high interest rates from informal lenders that can reach 100% to 300% in certain conditions.