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Alleviating Poverty in Sub-Saharan Africa: The Role of Inclusive Business Models

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  • Bernadette Dia
  • Alban A E Ahouré

Abstract

The study aimed to analyze the ability of inclusive business (IB) models to sustainably contribute to efforts made in alleviating poverty in Sub-Saharan Africa, with an emphasis on the cases of Côte d'Ivoire and Kenya. Data collected on these two countries revealed a clear opposite stream in the integration pattern of the populations at the bottom of the pyramid (BoP) in IB models. In Côte d'Ivoire individuals at BoPs integrate IBs mainly through the agricultural sector, getting busy with the supply of raw material, and with the distribution and/or sale of products in the value chain; thus, supporting an upstream integration. In Kenya, individual at BoPs rather are concentrated in manufacturing, with a first choice on non-permanent employees as activity in the value chain, followed by permanent employees; hence, downstreaming the integration ladder. In both countries, IB contributes positively and significantly to welfare at BoPs, especially when the IB model is implemented as part of a specific program.

Suggested Citation

  • Bernadette Dia & Alban A E Ahouré, 2023. "Alleviating Poverty in Sub-Saharan Africa: The Role of Inclusive Business Models," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 183-201.
    • Handle: RePEc:oup:jafrec:v:32:y:2023:i:supplement_2:p:ii183-ii201.
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    References listed on IDEAS

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    More about this item

    Keywords

    impacts; integration; up-stream; downstream; poverty alleviation; inclusive business; JEL classification: D63; O47; O57; P46;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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