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Performance of Microfinance Institutions in Burkina Faso

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  • Youssoufou Congo

Abstract

This study tests the performance of microfinance institutions (MFIs) in Burkina Faso using indicators such as the sustainable interest rate and the subsidy dependence index. The results indicate that MFIs outreach performance remains very low compared with potential demand, and the factors responsible appear to be both the refusal of most MFIs to mobilize local savings and the high costs of supply of microfinancial services. The results also show that MFIs are not viable and sustainable. Their interest rates are kept low and do not allow them to cover all the costs.

Suggested Citation

  • Youssoufou Congo, 2002. "Performance of Microfinance Institutions in Burkina Faso," WIDER Working Paper Series DP2002-01, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-01
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    References listed on IDEAS

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    1. Sharma, Manohar, 2000. "Microfinance," MP05 briefs 0, International Food Policy Research Institute (IFPRI).
    2. Yaron, Jacob, 1992. "Rural finance in developing countries," Policy Research Working Paper Series 875, The World Bank.
    3. Hoff, Karla & Stiglitz, Joseph E, 1990. "Imperfect Information and Rural Credit Markets--Puzzles and Policy Perspectives," The World Bank Economic Review, World Bank, vol. 4(3), pages 235-250, September.
    4. Yaron, Jacob, 1994. "What Makes Rural Finance Institutions Successful?," The World Bank Research Observer, World Bank, vol. 9(1), pages 49-70, January.
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    1. repec:mth:ijafr8:v:9:y:2019:i:1:p:317-339 is not listed on IDEAS
    2. Ahmad Nawaz, 2010. "Efficiency and Productivity of Microfinance: Incorporating the Role of Subsidies," Working Papers CEB 10-009.RS, ULB -- Universite Libre de Bruxelles.
    3. Mintah, Emmanuel Kofi & Attefah, Kingsford Justice & Amoako-Agyeman, Francis Kofi Amoako-Agyeman, 2014. "The effect of Microfinance Institutions on the growth of small businesses in Kumasi, Ashanti Region of Ghana," MPRA Paper 57481, University Library of Munich, Germany.
    4. Ahmad Nawaz, 2010. "Performance of Microfinance: The Role of Subsidies," Working Papers CEB 10-008.RS, ULB -- Universite Libre de Bruxelles.

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