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Credit for artisans! : bridging the gap between formal and informal loan systems through local public-private partnership


Document type: report
Download file(s): 116204 (360 KB)
Abstract: The present research poses the question of the feasibility of a microcredit initiative (the Fund) as a local economy development tool initiated by a local government and an Artisans’ Union in Djakotomey, Benin. The mobilization of local savings and the access to credit for artisans to sustain their economic activities were studied. A survey was conducted among recipients and non-recipients of loans from the Fund supplemented by individual qualitative interviews with keys partners of the initiative. Results show a strong legitimacy of the artisan leaders and the Mayor, which makes the members feel their savings are secure with the Fund. Contrary to what literature commonly suggests credit is accorded more to young illiterate women than to other groups. Although the Fund is a typical subsidized microfinance case this does not influence negatively on the ownership feeling of its members. The Fund so far is producing the effect its initiators were expecting, as loans are being spent in investments and income generating activities.
Note: Paper presented at: AEGIS European Conference on African Studies, 11-14 July 2007, Leiden, the Netherlands
Authors: Boko, J. , Houngbédji, A.
Country: Benin
Category: Practice
Keywords: credit , , income
Language: eng
Organization: SNV - Netherlands Development Organisation
PAGE: p. 5-18
Place: [Cotonou]
Publisher: SNV Benin
Year: 2007
Region: Africa South of Sahara , West Africa
Right: © 2007 SNV Benin
Subject: Agriculture and Rural Development
Title: Credit for artisans! : bridging the gap between formal and informal loan systems through local public-private partnership