You are here

Financial inclusion in Côte d’Ivoire

Image: Pexels

According to the African Development Bank (2013), the SME sector including microenterprises contributes about 33% of gross GDP and up to 45% of total employment in Africa – thus playing a major role in alleviating poverty. Microfinance in Côte d’Ivoire began in the early 1990s and Côte d’Ivoire now has the second largest microfinance sector in the West Africa Economic and Monetary Union (WAEMU) region. However, its share in the overall financial system has remained marginal. In contrast to the banking sector, which manages a little over 80% of the financial sector’s assets (i.e. total outstanding credits), microfinance covers only 2% (EIB, 2018), with the remaining assets being controlled by other financial service providers, particularly insurance companies.

This study, titled, ‘Première Agence de Microfinance: Promoting financial inclusion in Côte d’Ivoire’ showed that the organization PAMF-CI  is contributing to financial inclusion in some of the poorest areas of Côte d’Ivoire. More than 94% of their clients had been financially excluded prior to gaining access to the solidarity group loan. Clients are highly satisfied with PAMF-CI products and services. Most PAMF-CI loans are invested in business activities. Successive borrowing has positive impacts on the economic and financial performance of microenterprises. Customers also perceive positive impacts on their economic well-being, but no evidence could be found of an impact on longer-term fixed asset accumulation. PAMF-CI is successfully addressing financial exclusion among women, who make up over half of the client sample. However, the impact of PAMF-CI lending on business outcomes is less pronounced for women entrepreneurs.

The study was part of a joint program run by the European Investment Bank and the Global Development Network, initiated in 2016, that deployed African researchers to assess the development impacts of the EIB’s work in African and Caribbean countries, allowing the bank to enhance its contribution to sustainable and inclusive development while simultaneously enhancing local research and evaluative capacity.

Name of the Asset | The impact of private sector projects in Africa Studies from the EIB-GDN Program (Study from Cycle I: Première Agence de Microfinance: Promoting financial inclusion in Côte d’Ivoire)

Type of Asset | Paper in the Volume: The impact of private sector projects in Africa: Studies from the EIB-GDN Program (Cycle 1).

Date | 2019

Authors | Gloria Uwingabiye and Guylaine Nouwoue

Country and/or Region | Africa, The Caribbean and The Pacific (ACP) countries

Name of the Program | EIB-GDN Program in Applied Development Finance

Download the Full Report | Cycle I