Performance of Microfinance Institutions in Burkina Faso

Youssoufou Congo

No DP2002-01, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Banking; Competition; Cost effectiveness; Microfinance; Subsidies (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (4)

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