Cost-Benefit Analysis of the Cocoa Livelihoods Program in Sub-Saharan Africa

Francis Tsiboe, Lawton Nalley, Bruce L. Dixon, Jennie Popp and Jeff Luckstead

No 195775, 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia from Southern Agricultural Economics Association

Abstract: Billions of dollars flow into low-income countries each year to help alleviate poverty. Assessing the effectiveness of these dollars is necessary to measure program success and to allocate such funds among competing projects. This study measures the impact of the first phase of the Cocoa Livelihood Program (CLPI), a current World Cocoa Foundation project sponsored by the Bill and Melinda Gates Foundation. The project seeks to improve the livelihood of over 200,000 small cocoa producers in Sub-Saharan Africa via training, crop diversification and farmer based organizations. Using data collected from 2,048 pre and post CLPI interviews of cocoa producers in Ghana, Cote d’ivoire, Nigeria and Cameroon, the economic impact of the CLPI program can be estimated. The results show that yield enhancements attributable to CLPI are 36%, 38%, 49% and 24% in Ghana, Côte D’Ivoire, Nigeria and Cameroon, respectively. Using a total program cost of $158-$200 per beneficiary and estimated annual benefits of $86-$152 per beneficiary over 25 years, the benefit- cost ratios were estimated to range from $13 to $22 for every dollar spent on human capital development.

Keywords: Community/Rural/Urban Development; Crop Production/Industries; Food Security and Poverty; International Development; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 38
Date: 2014
New Economics Papers: this item is included in nep-afr
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Working Paper: Cost-Benefit Analysis of the Cocoa Livelihoods Program in Sub-Saharan Africa (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea15:195775

DOI: 10.22004/ag.econ.195775

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