Evaluation of the SIAN’SON microfinance credit on the economic efficiency of corn producers in northern Benin

Abstract

The level of poverty and food insecurity in developing countries are quite critical and are due to insufficient investment in agriculture and low access to agricultural credit. The effect of the SIAN'SON Microfinance credit on the economic efficiency of corn producers in the departments of Borgou and Alibori was evaluated in this paper. To achieve this, a socio-economic survey of a random sample of 150 producers receiving agricultural credit from SIANSON microfinance and 150 non-beneficiary producers in the municipalities of Banikoara,Bembèrèkè and Kalalé in North Benin was carried out. In econometric terms, a stochastic frontier model was estimated and means comparisons tests were performed. The results obtained in the study area show that, the average technical, rental and economic efficiency of maize producers are respectively 65.20%. 99.49% and 68.46%. The economic efficiency of credit recipients is higher than that of non-beneficiaries. The mean of the efficiency scores is positively significant at the 1% level. Access to credit from SIAN’SON Microfinance improves the economic efficiency of production in the study area. But the results obtained on technical efficiency show that in northern Benin, there are reserves of productivity to be developed in order to increase maize production and therefore increase their income.

JEL Classification: G 23

Paper type: Empirical research