SUSTAINABILITY OF MICROFINANCE AND HOUSEHOLD ACCESS TO CREDIT: EVIDENCE FROM CÔTE D’IVOIRE
TOGBA, Leadaut Edith Prisca
University of Felix Houphouët Boigny
The attainment of sustainability is critical for the long term viability of microfinance institutions (MFIs), which provide a set of financial products to all those excluded from formal financial system, in particularly to the low income households. But, such preoccupations force some MFIs to divert from their social missions in favor of profit. This thesis is out to propose mechanisms that will permit MFIs not only to be long lasting but also to reduce the credit burdens on households in Côte d’Ivoire, in other to mutually satisfy MFIs and households By using simultaneous equations and Heckman two steps models as well as the model of Stackelberg, the study brings out that a good capitalization or equity and the low administrative costs have important effects on the sustainability of the MFIs. Then, Savings and the grants remain only the resources facilitating the accessibility to the credit of the poor borrowers. However, as it is shown in this thesis by the model of Stackelberg, the usage of subsidy as a way of financing the extension of credit in the low-income households is effective only if the proportion of rich borrowers is high. Besides, from the analysis of credit source choice, the results reveal the size of the loan, agricultural purpose, the geographical area where households live and ethnicity as factors influencing the choice for formal sources.