Inventory credit to enhance food security in Africa
Tristan Le Cotty,
Elodie Maitre d'Hotel and
Julie Subervie ()
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Tristan Le Cotty: CIRED - Centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique
Elodie Maitre d'Hotel: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRA - Institut National de la Recherche Agronomique - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques
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In many African countries, rural households typically sell their output immediately after harvest and then have to face the lean season in often dramatic conditions. This paper explores whether alleviating both credit and storage constraints through an inventory credit (or warrantage) program in Burkina Faso is associated with improvements in household food insecurity and dietary diversity. We partnered with a rural bank and a nation-wide organization of farmers to evaluate a warrantage system with seventeen villages in the western region of Burkina Faso. In randomly chosen treatment villages, the households were offered a loan in exchange for storing a portion of their harvest as a physical guarantee in one of the newly-built warehouses of the project. We show that, after three seasons, the warrantage program has extended users' self-subsistence period by an average of seventeen days, increased the average size of the farmby one and a half hectares (one additional hectare of cotton and one additional half hectare of maize) and increased dietary diversity significantly, with more fish, fruit and oil consumed weekly.
Keywords: inventory credit; warrantage; savings; storage; intertemporal price fluctuations (search for similar items in EconPapers)
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Working Paper: Inventory credit to enhance food security in Africa (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:ciredw:hal-02018715
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