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MEASURING THE EFFICIENCY OF SUB‐SAHARAN AFRICA'S MICROFINANCE INSTITUTIONS AND ITS DRIVERS
Author(s) -
Segun KEMONOU Richard Senami,
ANJUGAM M.
Publication year - 2013
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/apce.12021
Subject(s) - microfinance , business , business administration , political science , financial system , geography , humanities , economics , economic growth , art
This paper uses a large panel data set covering 70 MFIs in 25 Sub‐Saharan African countries to analyze the efficiency of MFIs. This is important, given that MFIs have to operate efficiently to fulfil its dual mission of serving the poor and being sustainable. The results reveal that MFIs are inefficient in meeting the goals of either providing microfinance related services to their clients or intermediating funds between borrowers and depositors. The MFIs lack ability to reach efficient sizes of their performing loan portfolio at the same time they reach an efficient number of clients served.