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- PublicationUnderstanding the Determinants of Mobile Money Usage and its Effect on Firm Performance: Cross-Country Evidence from Sub-Saharan Africa(AERC, 2026) Joseph B. Ajefu; Adolicia RasoarivaoA growing number of studies have examined the roles of mobile money usage in relation to firms’ outcomes, but little emphasis has been placed on the cross-country determinants of mobile money usage as well as its impact on firms’ performance. This paper examines the determinants of mobile money usage and its impacts on firms’ total sales and profits (proxied as firm performance) using a sample of firms across 14 countries in sub-Saharan Africa. To investigate the determinants or drivers of mobile money usage by firms in sub-Saharan Africa, this paper adopts both the ordinary least squares (OLS) method, probit model, ordered probit model approach. The paper identifies a few variables (factors) such as firm level as well as macro-level variables as determinants of mobile money usage by firms. In addition, this paper estimates the impact of mobile money on firms’ performance by adopting the ordinary least squares, and an instrumental variable (IV) estimation approach. Further, using the OLS and IV approaches, the paper finds statistically significant effect of mobile money usage on firms’ performance for the sample of firms in our analysis. The findings lend credence to the growing consensus about the relevance of mobile money in addressing issues of credit constraint of firms and its implications on firms’ performance in developing countries, especially in the context of sub-Saharan Africa.
- PublicationFAILURE AND SURVIVAL OF WEST AFRICAN ECONOMIC AND MONETARY UNION BANKS : THE ROLE OF REGULATORY CAPITAL(AERC, 2026) Vigninou GammadibeThis paper analyzes the contribution of capital and its ownership structure on the failure of WAEMU (West African Economic and Monetary Union) banks. The study covers 147 banks observed over the period 2003-2017 and is based on non-parametric, semi-parametric, and parametric survival models. The results of the estimates using the partial maximum likelihood method show that the capital ratio plays a key role in the survival of banks by significantly reducing the probability of failure. Findings revealed that they can predict banking difficulties over a time horizon ranging from one to three years. Foreign ownership seems to reduce the probability of default. The increase in bank capital from 2007 seems to be accompanied by a faster acceleration of total bank assets as compared to equity. The estimates showed that low market share is an indicator of banks’ vulnerability. Based on these findings, the paper recommends special supervision of small and newly established banks with small market shares and better management of banking institutions concerning capital management and risk-taking. Furthermore, the study urges the regulator to consider the structure of the market while issuing new licenses, to avoid a highly competitive banking sector that is not conducive to the stability and survival of banks.
- PublicationHousehold Response to Seasonal Hunger in Uganda: Evidence from National Panel Surveys(AERC, 2026) Ibrahim Kasirye; Madina GulobaDespite Uganda having constitutional provisions to ensure food security, a large population of Ugandans can still not meet the minimum recommended dietary intake (RDI). In addition, there are within-country variations in the number of cropping seasons, which affect continuous food availability. The study explored the correlates of seasonal hunger, an important but neglected issue within the African and Ugandan food security literature. In addition, we explored the nature of coping strategies adopted by households faced with seasonal hunger using four waves of a unique panel dataset of Ugandan households from the Living Standard Measurement Surveys-Integrated Surveys on Agriculture (LSMS-ISA). We find that fertilisers significantly reduce the risk of experiencing seasonal hunger. In some estimations, having a household member engaged in wage employment is associated with an increased risk of seasonal hunger. Our results show that policies focusing on smoothing consumption or boosting productivity can help address seasonal hunger. Concerning the appropriateness of coping strategies, we find that having adequate storage is negatively associated with the seasonal hunger experience. Regarding policies, households can adopt ex-ante strategies to smooth consumption, such as keeping livestock and establishing appropriate storage facilities. Social protection interventions should thus have a livestock component. Using improved agricultural inputs should be a major focus for extension services in order to enhance productivity.
- PublicationThe Nexus Between Agricultural Aid and Poverty Alleviation in Sub-Saharan Africa(AERC, 2026) N’Dri Kan DavidThe primary objective of this study is to examine the effectiveness of foreign public aid in reducing poverty in sub-Saharan African countries. Employing a methodological framework that encompasses linear panel and simultaneous equations models, we aim to assess the hypothesis that such aid contributes to poverty reduction by enhancing agricultural productivity. Our analysis yields evidence indicating a positive and statistically significant effect of international aid allocated to the agricultural sector on agricultural productivity. A 1% increase in aid per worker is associated with a 0.198% increase in agricultural productivity, holding other factors constant. Furthermore, our findings elucidate that increases in agricultural productivity exert a mitigating influence on poverty levels within the sub-Saharan African context. A 1% increase in agricultural productivity is associated with a 0.02 percentage point decrease in the poverty headcount ratio, on average, all else being equal. The results indicate that foreign aid affects poverty and agricultural productivity in the selected countries. Therefore, it is suggested that international donors increase their aid to foreign agriculture, focusing on methods that boost productivity. Consequently, our results highlight the imperative of maximizing the productivity-oriented outcomes of agricultural aid, thereby enhancing its effectiveness in efforts to reduce poverty.
- PublicationImpact of the Adoption of Electrical Equipment on Cotton Productivity in Benin(AERC, 2026) Pascaline E. Agboca; Marcel O. IfecroIn Benin, the improvement in cotton productivity occurred in a context of increased access by farmers to electrical equipment. The objective of this research is to analyze the effective contribution of the adoption of electrical equipment to cotton productivity in the country. The regime switching model – MCR (endogenous switching regression) is used based on data from the Harmonized Survey on Household Living Conditions in Benin (EHCVM, 2019). The results obtained indicate on the one hand that education, use of telephone, financial account, inputs, transfers received, household shock and cultivation area are determining factors in the adoption of equipment electricity by cotton producers and on the other hand that the value of the effect of the adoption of electrical equipment on cotton productivity is 2502 kg per ha. This gain in productivity suggests at the microeconomic level that cotton producers who have not adopted electrical equipment do so in the hope, all other things being equal, of an increase in their productivity on average of 44.31% compared to their level current productivity. The microeconomic policy implications of this study are the orientation of cotton farmers towards equipment using electrical energy and the popularization of their adoption, especially in areas of intense production for the increase in cotton productivity in Benin.