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1. Policy Briefs
Concise summaries that present research findings and policy recommendations on key economic issues to inform policymakers and stakeholders.
2. Research Papers
In-depth studies and scholarly articles that explore various aspects of economic theories and empirical research, contributing to academic discourse and understanding.
3. Working Papers
Preliminary reports on ongoing research that are circulated to encourage discussion and suggestions for revision before final publication.
4. Theses and Dissertations:
CPP Thesis: Rigorous academic research focused on pertinent policy issues, typically by candidates of the Collaborative PhD Program. CMAP Thesis: Scholarly works by Master's candidates involved in the Collaborative Master's in Economics Program, showcasing original research in the Economics sector. CMAAE Thesis: Advanced research endeavors by Master's students under the Collaborative Master's in Agricultural and Applied Economics, contributing to knowledge in agricultural economics and related fields CMAAE Thesis
5. Senior Policy Seminar papers
African Economic Research Consortium (AERC) holds a Senior Policy Seminar annually. This conference is hosted by AERC and sometimes jointly with a partner. AERC convenes this forum to provide high level African policy makers the opportunity to come together to dialogue on the results of research conducted by AERC and its affiliates, exchange policy experiences and interact with the researchers in an atmosphere of peers. The themes of these seminars are selected on the basis of topicality and contemporary interest to African policy making.
6. Other Publications
A diverse range of documents including, but not limited to, conference papers, book chapters, and research updates that do not fall under the conventional categories.

Recent Submissions

Publication

Understanding 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 Rasoarivao

A 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.

Publication

FAILURE AND SURVIVAL OF WEST AFRICAN ECONOMIC AND MONETARY UNION BANKS : THE ROLE OF REGULATORY CAPITAL

(AERC, 2026) Vigninou Gammadibe

This 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.

Publication

Household Response to Seasonal Hunger in Uganda: Evidence from National Panel Surveys

(AERC, 2026) Ibrahim Kasirye; Madina Guloba

Despite 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.

Publication

The Nexus Between Agricultural Aid and Poverty Alleviation in Sub-Saharan Africa

(AERC, 2026) N’Dri Kan David

The 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.

Publication

Impact of the Adoption of Electrical Equipment on Cotton Productivity in Benin

(AERC, 2026) Pascaline E. Agboca; Marcel O. Ifecro

In 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.

Publication

Inequality of Opportunity in Prevention of Malaria in Pregnancy in Kenya

(AERC, 2026) Elizabeth Owiti

Background: Kenya is classified as a malaria epidemic zone with more than 70% of the population at high risk of the disease, while the remaining are at low risk. Pregnant women are more vulnerable to malaria infection, and maternal and infant morbidity and mortality in Kenya are associated with malaria in pregnancy. The government of Kenya promotes malaria prevention in pregnancy using insecticide-treated nets (ITNs) and intermittent prevention treatment in pregnancy (IPTp) using sulfadoxine-pyrimethamine (SP). The objective of this study is to estimate the trend of coverage and inequality of opportunity in the prevention of malaria in pregnancy in Kenya and establish the determinants of these inequalities. Methodology: We used the Human Opportunity Index (HOI) to examine the equality of opportunity in joint use of two malaria prevention interventions: insecticide-treated nets (ITNs) and intermittent preventive treatment in pregnancy (IPTp) using sulfadoxine-pyrimethamine (SP) among pregnant women in Kenya. The Shapley decomposition method is used to capture the contribution of each circumstance to inequality of these opportunities, using pooled KDHS data for 2003, 2008/09, 2014, and 2022. Results: We find that between 2003 and 2022 the cummulative national coverage, dissimilarity, and HOI of using ITNs and IPTp–SP were 45.4%, 3.8% and 43.7%. The trend of coverage and HOI increased from 12.2% to 65.3% and from 10.7% to 62.4% during the same period. While inequality decreased from12.8% to 1.6% and then increased to 4.4% in 2022. The coverage implies that malaria prevention services were not available for 34.7% of pregnant women in by 2022. The HOI increased by 48.6% from 2003 to 2008/09, 0.7% of the increase was due to change in the distribution of circumstances and 41.1% increase was due to increase in overall coverage and 6.9% increase was due to equalization effect. In the Lake Victoria region and the Coastal malaria stable areas in Kenya, there was an increasing trend in of utilization of both ITNs and IPTp–SP from 11.8% in 2003 to 83.3% in 2014, then a declined to 65.4% in 2022. The HOI increased from 9.2% to 83.14%, then declined to 59.2%. The dissimilsrity index declined from 22.3 % to 0.16% in 2014, then incresed to 9.5% in 2022. There was a significant decline in inequality of opportunity between 2003 and 2014, but an increase there after. These increase could be attributed to distruptiosn in access to health services during and after COVID 19 outbreak. Using Shapley decomposition, we find the top five circumstances contributing to inequality of opportunity for ITNs and IPTp – SP utilization are: women’s level of education, spouse occupation, average number of women per cluster delivering in the health facilities, among others. Conclusion: While the country made progress in increasing coverage, access and reducing inequality in malaria prevenion among pregnant women between 2003 and 2014, there were set backs post 2014 leaving over 34% unprotected by 2022. The malaria endemic zone is the most affected. To achieve univeral coverage, the government needs to intensify the efforts to close the gap in coverage and access while eliminating dispatities especially in high risk Lake Victoria region and the Coastal regions

Publication

Do Non-Classical Measurement Errors Affect the Effects of Farm Input Subsides on Crop Productivity? Evidence from Malawi

(AERC, 2026) Martin Limbikani Mwale

Non-classical measurement errors produce biased and inconsistent estimates in estimations. Previous studies have examined the effects of farm production on crop productivity without accounting for non-classical measurement errors. Using satellite data, which is free from neo-classical errors, this study sought to establish whether the effects of Malawi’s farm input subsidy on crop productivity are biased. The study compared results generated using satellite yields to those generated using yields reported by farmers through a survey. The study tested the sensitivity of the satellite estimates by changing the possible yields to fertilizer response rates, and the results remained consistent with the main findings. The findings revealed that the effect of farm input subsidies on crop productivity generated through survey data are upward biased. Farmers over-report yields to demonstrate that they are productive and retain their status as subsidy beneficiaries. Studies on farm input subsidies, therefore, need to pay attention to non-classical measurement errors to provide reliable results and policy advice on farm input subsidies. Furthermore, policy on farm input subsidies needs to strengthen the targeting of beneficiaries to evade inclusion and exclusion errors of productive farmers.

Publication

Economic Transformation and Tax Revenue Performance in SSA Countries

(AERC, 2026) Fossong Derrick; Ndamsa Dickson Thomas

Many studies have addressed the determinants of tax revenue performance, but knowledge on the causal impacts of economic transformation is nearly non-existent. This study used panel data from the World Bank Development Indicators and UNDP database over the period 1990–2021 to provide evidence on the effect of economic transformation on tax revenue performance. Our panel data estimation disentangled the causal effects of economic transformation in resource-rich and non-resource-rich countries. We employed the GMM to correct the problem of dynamic endogeneity and unobserved panel heterogeneity. We further utilized the fixed and random effects to assess the robustness of the GMM estimations. GMM results indicated that economic transformation has a significant positive effect on tax revenue performance in SSA. The fixed and random effects results reported a positive and significant effect of economic transformation on tax revenue performance in SSA, similar to the GMM results. We used two ICT-related transmission mechanisms: ICT adoption and ICT export/import. We found that ICT stock does mediate the effect of economic transformation on tax revenue performance. Like in resource-rich countries, economic transformation had a positive impact on tax revenue performance in non-resource-rich countries. Thus, this study recommends that SSA countries, in an effort to increase tax revenue performance, should promote economic transformation through the DEPTH (diversification, export competitiveness, productivity, technological upgrading, and human well-being). Measures to enhance ICT adoption the for e-tax system are vital in strengthening the relationship between economic transformation and tax revenue performance in SSA.

Publication

Assessing the Impact of Input Subsidies on Agricultural Productivity in Sub-Saharan Africa: Applied Political Economy Analysis

(AERC, 2026) Joseph Manzvera; Mark Manyanga

The increasing policy interests and vibrant scholarly debate surrounding the impact of input subsidy programs in Sub-Saharan Africa have inspired a growing literature on how input subsidies affect agricultural productivity. The available empirical evidence provides contrasting views, with one school of thought supporting input subsidies as agricultural productivity catalysts, while another school of thought views input subsidies as agricultural policies that failed to stimulate productivity but instead imposed unsustainable pressure on national fiscal resources. Therefore, understanding the extent to which input subsidies influence agricultural productivity, the prevailing effect, and the drivers behind one effect or the other is a pressing matter to guide policy and practice. As such, this study systematically reviewed existing literature on the subject matter and synthesized the evidence through an applied political economy analysis lens. Concurrently, a meta-analysis was conducted to disentangle the potential determinants of heterogeneity in estimates of the impact of input subsidy programs across different countries. The findings showed that input subsidy programs contributed to boosting agricultural productivity in Sub-Saharan Africa in general. The average pooled effect size of input subsidies on crop value is US$128/ha (p<0.01). However, there exists a significant heterogeneity in the effect of input subsidy programs from one study to the other (Ι 2 = 100%). This underscored the role played by the prevailing political economy landscape and other subsidy-specific characteristics on the effectiveness of input subsidy programs in Sub-Saharan Africa. Input subsidy programs providing input packages with both fertilizer and improved seeds, as well as the use of a voucher system, enhance the effectiveness of input subsidies. The incidences of political patronage in subsidized input distribution, on the other hand, undermine the effectiveness of input subsidies. Contingent upon these findings, it is therefore proposed that input subsidy packages should include both fertilizer and improved seeds rather than fertilizer alone. There is also a need to deliberately incorporate legume crops, both from crop diversity and soil fertility points of view. The use of a voucher system is also encouraged to strengthen transparency and increase logistics efficiency and recipient targeting, while also permitting the timely delivery of subsidized inputs to farmers. To curb political patronage, it is suggested that farmer production return forms be used in input subsidy targeting to identify productive (but resource-constrained) farmers and, as a result, remove the involvement of public officials.

Publication

Fiscal Consolidation and Asymmetric Macroeconomic Effects: Evidence from Sub Saharan African Countries

(AERC, 2026) Oluwasola E. Omoju; Ruth Badru; Andrea Cale; Ayobami E. Ilori

This study investigates the macroeconomic implications of fiscal consolidation in Sub-Saharan Africa (SSA) using an annual dataset from 1995 to 2019 for 37 countries in the region. Employing the local projection approach, we analyze the short- and medium-term effects of fiscal consolidation on output and debt reduction. Our findings reveal that fiscal consolidation measures exert an expansionary effect on output, and the debt reduction effect reaches its peak after three years. Notably, heavily indebted poor countries exhibit a more pronounced response to fiscal consolidation, while the impact is independent of resource endowment levels. During economic upturns, the debt reduction effect is rapid but transitory. Conversely, during downturns, the effect is gradual, more substantial, and persistent. Furthermore, we find that expenditure-based and revenue-based consolidation have similar effects on debt and output during expansionary phases. However, during recessions, their effects differ considerably. Overall, our findings indicate that expenditure-based fiscal consolidation enhances fiscal sustainability but may come at the cost of reduced consumption welfare. Moreover, prioritizing expenditure-based fiscal consolidation offers a promising pathway for enhancing fiscal sustainability in the region. These findings offer important implications for policymakers seeking to address the challenges of public finance and debt distress in SSA.

Publication

Measuring the Connectedness of the Nigerian Banking System

(AERC, 2026) Victor A. Malaolu; Jonathan E. Ogbuabor; Prof. Hyacinth Ichoku

The Global Financial Crisis showed that crises can quickly spread from one banking institution to others, thereby reigniting the interest of bank regulators in the connectedness of banking systems. In this study, we used the spillover approach of Diebold and Yilmaz (2009) to examine the connectedness of the Nigerian banking system. We find that the banking system in Nigeria is deeply interconnected with a mean total connectedness index of 76.13%, suggesting that there is a high likelihood that crises can spread from one institution to another. We also find that while the tier-1 banks exert dominant influence on the Nigerian banking system and therefore have the potential to propagate systemic risks, a few tier-2 banks are vulnerable to systemic risks arising from the connectedness of banks in Nigeria. These findings suggest that there is a need for the CBN to focus its regulatory oversight more on these banks, thereby highlighting the fact that in managing systemic risk in a banking system, the monetary authority can use connectedness analysis to focus on certain banks more than others. Our findings further indicate that the 2016 economic recession amplified the risk of the systemic banking crisis in Nigeria, suggesting that banking systems should be rigorously monitored during crisis periods to limit systemic risk. Lastly, our findings indicate that two of the banks taken over by the CBN in August 2009 were not vulnerable at the point of take-over, suggesting that connectedness analysis can be used to improve regulatory decision-making in such situations. The study concludes that the CBN can strengthen its regulatory oversight by extending its systemic risk management framework to include connectedness analysis

Publication

Impact of Participation in Inclusive Business Models on Food Security in Burkina

(AERC, 2026) Judith Oubda; Alban A.E.Ahoure; Pam Zahonogo

Entrepreneurial initiatives targeting disadvantaged populations can be a tool for improving the well-being of households, particularly those suffering from food insecurity. This study aims to analyse the contribution of inclusive business models (IBMs) to improving household food security in Burkina Faso. The data used in this study were collected from 780 beneficiaries and non beneficiaries of Inclusive Business Models in the cities of Ouagadougou and Bobo-Dioulasso in 2019, as part of a research project on the economic inclusion of youth and women in inclusive entrepreneurship in Africa. The methodological approaches are based on endogenous switching regressions and propensity score matching models of participation in such activities and gains in terms of food expenditure and dietary diversity. The results show that participation in IBMs has a positive impact on household food expenditure and dietary diversity in Burkina Faso. The potentially significant contribution of IBMs could provide the empirical basis for such a public strategy to promote food security and, more generally, the well-being of households in Burkina Faso

Publication

African Countries and the Brain Drain: Winners or Losers? Beyond Remittances

(AERC, 2026) Narcisse Cha’ngom

Publication

Does Trade Facilitation Contribute to Food Security? A Panel Data Analysis in Sub-Saharan Africa

(AERC, 2026) Moukaila Mouzamilou Takpara

Food insecurity remains a serious and global concern that continues to escalate due to various factors, including the COVID-19 pandemic and the Ukraine crisis, which have exposed structural vulnerabilities of developing economies, particularly in African countries. This paper analyses the contribution of trade facilitation through physical infrastructure, Information and Communication Technology (ICT), business environment as well as border, and transport efficiency to food security in Sub-Saharan Africa (SSA). The analysis uses a sample of 36 SSA countries from 2005 to 2019 and adopts the fixed effects and the two stage least square methods. Results show that improvement in trade facilitation enhances food security in SSA. This effect is evident in the composite food security and in two dimensions (access and utilization) of food security. Similarly, trade facilitation indicators, namely business environment and ICT are the most promising in SSA's fight against food insecurity. Moreover, the results show also that countries with low rural population experienced positive effects of facilitating trade than countries with high rural population. The results highlight the need for improving regulatory environment as well as simplifying and harmonizing trade procedures to enhance food security in SSA.

Publication

Trade Facilitation and Intra-ECCAS Trade

(AERC, 2026) Mougnol A Ekoula Herve William; Mbang Charles III

The objective of this project is to analyze the effects of the implementation of trade facilitation indicators on bilateral trade flows. Thus, drawing on recent theoretical and empirical developments, we estimate a gravity model using the two-step model of Martinez Zarzoso and Chelala (2020) using the Poisson Pseudo Maximum Likelihood (PPML) estimator in robustness. The data comes from ESCAP (extension in reference), the World Bank, UNCTAD 1and CEPII 2 over the period 2006-2015. The main results obtained are as follows: (i) Total non tariff trade costs have an overall negative and significant impact whether the country is an exporter or an importer, (ii) The time required to import a good has a negative and significant effect on exports (importers), (iii) The number of documents to export a commodity reduces exports significantly by 1%. We recommend reducing non-tariff trade costs, easing export and import documents, and dematerializing customs procedures to reduce the time needed to export a good

Publication

Armed conflicts and child nutritional health outcomes: evidence from the Fulani ethnic militia (FEM) conflict in Nigeria

(AERC, 2026) Amaka Nnaji; Olukorede Abiona; Omoniyi Alimi

Increasing violent conflict has resulted in population displacement and the destruction of livelihoods, thereby hindering economic growth. This study estimates the association between early exposure to Fulani ethnic militia (FEM) conflicts and subsequent child health outcomes in Nigeria. Using nationally representative Nigerian General Household Survey data merged with georeferenced FEM conflict data, the study shows that contemporaneous exposure to FEM conflict is strongly associated with declining child health – measured in terms of WAZ (short-term measure) or HAZ (long-term measure). We also find that in-utero exposure to FEM conflict is weakly associated with declining long-term child health but not with short-term child health. Specifically, this effect is more severe in rural areas compared to urban areas. Furthermore, girls are more affected by contemporaneous FEM conflict exposure in the long-term health outcome, and boys are more susceptible to FEM conflict exposure in the short-term health outcome. Older children are more negatively affected by contemporaneous FEM conflict exposure. Agricultural productivity, food security, and access to sanitary toilet facilities appear to be the primary underlying channels of the estimated effects. Results are robust to including other conflict measures and variations in weather patterns. Findings highlight the need for conflict prevention and peacebuilding efforts to resolve conflicts between farmers and herders

Publication

Impact of Irrigation on Farm Household Diet Quality: Evidence from Ethiopia

(AERC, 2026) Musa Hasen Ahmed

Irrigation could theoretically affect farm households’ nutritional status in two directions. On the one hand, irrigation may improve nutritional status by boosting farm productivity and household income. On the other hand, it may deter diet quality by shifting farmers' attention from nutrition-rich food to cash crops. This study examines the impact of irrigation schemes on farm households’ nutritional status using nationally representative data from Ethiopia. Using the endogenous switching regression model, the study shows that irrigation improves diet quality. In addition, the study also identifies the production of micronutrient-rich crops such as vegetables and fruit and the adoption of productivity-enhancing inputs as the main pathways through which irrigation affects dietary quality. Hence, irrigation can be considered a viable instrument to enhance the diet quality of smallholders, and efforts should be made to tackle constraints that impede the adoption of irrigation technologies

Publication

Spatial Price Flows for Orphan Legumes: Evidence from Benin

(AERC, 2026) Akem Nina Fabinin

Understanding the trends in orphan legume crop markets is of vital importance given propositions for the development of the food system for such landrace crops. Regional distributions for such indigenous crop legumes mean understanding that their markets are crucial for enhancing market linkages for improving market performance and food distribution across regions. The current study descriptively examines monthly producer price data for orphan legume crops. For comparison purposes, a major staple is additionally examined to observe patterns relative to the orphan crops. What patterns exist between orphan crops, and compared to staple commodities? As observed, even within growing areas, differential linkages and inconsistencies may already point to structural challenges rather than market-specific inadequacies such as poor infrastructural amenities and systems. Similar correlated relationships between landrace legume and staple food markets may already point to such structural factors. Reconsidering regional segregation discrepancies into food policy frameworks may be able to contribute to reduced inequalities in food availability across regions. This could take the form of regional food redistributions across affluent and deficit regions

Publication

Effect of Competition on the Performance of Microfinance Institutions in Sub-Saharan Africa

(AERC, 2026) Tchakounte Joséphine

This study aims to analyze the effect of competition on the profitability and outreach of SSA MFIs. To achieve this objective, data were extracted from a dynamic panel of 3,105 MFI observations from the MIX market and the World Bank for the period 2000 to 2017. Applying two-stage GMM, instrument-free inference for linear regression models with endogenous regressors, pooled fixed-effects OLS and pooled random-effects OLS on these data, our results showed that competition decreases profitability (ROA and ROE) of profit-oriented and non profit MFIs. Our results also showed that competition exerts a mixed effect on the outreach (avloangni and NAB) of these institutions. However, it is important to point out the presence of a much more detrimental effect of competition on return on assets (ROA) and average loan per borrower (avloangni) for non-profit MFIs compared to that of profit-oriented MFIs. When return on equity (ROE) is considered, we observe instead a much more detrimental effect of competition on the ROE of profit-oriented MFIs compared to that of non-profit MFIs. The discovery of a positive effect of competition on the number of active borrowers (NAB) of profit-oriented and non-profit MFIs, suggest that in SSA, competition does not automatically lead to a drift in the social mission (avloangni) of MFIs, as it also enables these microfinances to increase their NAB. Given these results, policymakers in SSA countries need to improve the profitability and outreach of profit-oriented and non-profit MFIs by deploying a regulatory framework that reduces the lending rates charged in the microfinance sector.

Publication

Advancing Gender-Responsive Support to Food SMEs to Improve Access to Safe, Affordable and Nutritious Food in Malawi

(AERC, 2026) Gitau, Raphael K.; Wekesa, Bright; Harawa, Philip P.; Shashi, Njile Isaack; Ninsiima, Racheal; Chelang'a, Naomi Chebiwot; Mugisha, Baine Euzobia; Korir Emily6

Small and Medium-scale food vendors operating in local markets in Lilongwe are crucial in the provision of food to households, especially those from low-income stratum. Despite their significance, food vendors’ ability to supply consumers with affordable, safe and nutritious food is constrained by limited accessibility to business credit, limited accessibility to business registration services, limited accessibility to business support groups and mentorship, and limited accessibility to and utilisation of sanitation facilities in the local markets. It is imperative, therefore, to cascade business registration services to local market levels; devise and roll-out gender-inclusive mechanisms to incentivise food traders to register their enterprises; strictly enforce food safety measures among food traders at all times and undertake periodic assessments of business development needs of food SMEs and implement appropriate actions. Food vendors as well, through the leadership in the local markets, should always be pro-active in demanding hygienic, safe and inclusive market infrastructure from duty bearers; be pro-active in identifying and engaging business development facilitators, and facilitate development and strengthening of business support groups among the food SMEs.