Agricultural Microcredit in Cote D'ivoire
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DOTTORATO IN SCIENZE ECONOMICHE, AZIENDALI E STATISTICHE DIPARTIMENTO DI SCIENZE ECONOMICHE, AZIENDALI E STATISTICHE SECS-P/06 AGRICULTURAL MICROCREDIT IN COTE D’IVOIRE IL DOTTORE IL DECANO DEL COLLEGIO MOUSTAPHA SANGARE Chiar.mo Prof. FABIO MAZZOLA IL TUTOR Chiar.mo Prof. VINCENZO PROVENZANO CICLO XXIX ANNO CONSEGUIMENTO TITOLO 2017 ! ABSTRACT The financing of agriculture in rural areas for poverty reduction remains an important concern that has involved several research. The granting of microcredit to people with low income is viewed as an opportunity to increase farm income in rural areas. The survey led in Côte d’Ivoire in the region of Tchologo attempted to shed light on the relation between microfinance institution and farmers. This region has about 65% of poverty rate and people are mainly involved in the production of cash and food crops. Through financial diaries methodology, farm needs were tracked to know how farmers manage his little financial resources by the identification of main farm needs and their difficulties to meet them. Indeed, the survey takes into account 202 respondents with farm as main profile among which 34% are credit beneficiaries of UNACOOPEC-Ferké institution. The analysis of the economic and social characteristics provides various information regarding the consideration that grants microfinance institution to farmers. Besides that, the statistical significance (t-test) allowed to dress the concern of the improving of farm income through microcredit supplying. ! ACRONYM ANADER Agence Nationale d’Appui au Développemnet Rural , APSFD-CI Professional association of decentralized financial systems in Ivory Coast. ASCA or ASCRA Accumulating Savings and Credit Associations BACI Banque Atlantique de Cote d’Ivoire BCEAO Central Bank of West Africa States BFCD Office of Training and Councils in Development BICICI Banque Internationale pour le Commerce et l’Industrie de la Cote d’Ivoire BNI Banque Nationale d’Investissement CDCI Compagnie de Distribution de Cote d’Ivoire CGAP Consultative Group to Assist the poor CHCE Coopérative d’Habitation des Cantons de l’Est CNM National Commission for Microfinance COIC Compagnie Ivoirienne de Coton CVGFR Comité Villageois de Gestion du Foncier Rural DM Direction of the Microfinance DRA Régional Direction of Agriculture, DSRP-I Document Stratégique de Réduction de la Pauvreté Intérimaire FAO Food and Agriculture Organization of United Nations FIRCA Inter-professional Agricultural Research and Advisory Fund GDP Gross Domestic Product IMEC Mutualists Institutions or Cooperatives of Savings and Credit MEF Ministry of the economy and Finances MINAGRI Ministry of Agriculture NNP National Nutrition Program NSI National statistical Institut OCPV Office d’Aide à la Commercialisation des Produits Vivriers OHADA Organization for the Harmonization of Business Law in Africa ONDR, National office of Development of the Rice OPA Organisation Professionnelle des Agriculteurs ROSCA Rotating Savings and Credit Association SFD Systèmes Financiers Décentralisés SHG Self-Help Group SIB Société Ivoirienne de Banque SODEPRA Société de développement des productions animales SODEFEL Société de fruits et légumes SODERIZ Société de développement de la riziculture SECO Société d’Exploitation Cotonnière Olam PAFARCI Support project in the relaunch of agricultural network of Ivory Coast PAS Plans d’ajustement structurels PDDA PLAN DIRECTEUR DE DEVELOPPEMENT AGRICOLE PLDR Programme Local de Développement Rural PNASA National Program of Support for the Agricultural Services PNIA Programme National d'Investissement Agricole PNLCP Plan National de Lutte Contre la Pauvreté PPMS Project of Support for the Small farming PREMT The Plan of Economy Recovery in the Medium-term PROPACOM Project of Support for the Agricultural production and the Marketing PRAREP Project of Agricultural Rehabilitation and Reduction of the Poverty PSRE The Plan of Stabilization and Economy Recovery UNACOOPEC-CI Union Nationale des Coopératives d’Epargne et de Crédit de Cote d’Ivoire UNDP United Nations Development Program USAID United States Agency for International Development VSLA Village savings and loan associations ! WFD Water Framework Directive WAEMU West Africa Economic and Monetary Union ! ! ACKNOWLEDGMENTS ! I thank all who in one way or another have contributed in the completion of this thesis. My special and heartily thanks to my supervisor, Prof. Vincenzo Provenzano who directed me during this research. He has been remarkably patient with me. I would also like to thank also my supervisor of COTE D’IVOIRE, Prof. Zié Ballo for his assistance and encouragement during the field research in the region of Tchologo. I am deeply thankful to my colleagues in particular Pietro Pizzuto for the great help for my integration in the University. I thank my family SANGARE and DIARRASSOUBA who encouraged me and prayed for me during the time of my research. This thesis is heartily dedicated to my mother who assists me since the death of my father. Finally, i give thanks to God for protection and ability to do work. ! ABSTRACT ACRONYMS ACKNOWLEDGMENTS INDEX INTRODUCTION Introduction Context of study Objective of study CHAPTER 1: POVERTY AND MICROFINANCE 1.1-Introduction..................................................................................................................................8 1.1.1- informal practice of microfinance..........................................................................................9 1.1.2- individual and collective informal financial practice..........................................................10 1.2- Microfinance and microcredit: perceptible difference......................................................... 15 1.2.1 Risk management and intervention of the microfinance ....................................................18 1.3- Objective of microfinance.........................................................................................................21 1.4- Microfinance and impact study...............................................................................................25 1.4.1- Microfinance and agriculture financing..............................................................................30 1.5- Measuring impacts of microcredit...........................................................................................35 1.6- Presentation of UMOA.............................................................................................................38 1.6.1- Poverty in the UMOA............................................................................................................41 1.6.2-Microfinance, institutional and legal organization..............................................................44 1.6.3- Microfinance in Côte d'Ivoire...............................................................................................46 1.7- Conclusion..................................................................................................................................53 1.8- References..................................................................................................................................54 ! CHAPTER 2: AGRICULTURE IN COTE D’IVOIRE 2.1- Introduction...............................................................................................................................62 2.1.1- Agriculture in sub-Saharan Africa.......................................................................................63 2.2- Agriculture in Côte d'Ivoire.....................................................................................................66 2.2.1- Evolution of Ivorian agriculture...........................................................................................68 2.3- The agriculture situation and Ivorian State...........................................................................70 2.3.1- Agricultural Policy.................................................................................................................70 2.3.2- The agro-business sector........................................................................................................71 2.3.3- Challenges of agriculture.......................................................................................................72 2.4- Conclusion..................................................................................................................................74 2.5- References..................................................................................................................................75 CHAPTER 3: METHODOLOGY AND SURVEY IN THE REGION OF TCHOLOGO 3.1- Introduction...............................................................................................................................77 3.2- Financial diaries methodology.................................................................................................77 3.2.1- Financial diaries method and context of study....................................................................79 3.3- Presentation of the Tchologo region........................................................................................82 3.3.1- The economic situation..........................................................................................................83 3.3.2- Assets and potentialities of the region..................................................................................83 3.3.3- The agricultural production in the region...........................................................................86