Microcredit program helps a million Beninese people getting out of poverty

Oct 25, 2013

The "micro-loans to the poor" scheme has helped over a million people getting out of poverty, said Thibaut Assogba, research professor of economics at Cotonou, quoted by Xinhua news agency .

The "micro-loans to the poor" scheme has helped over a million people getting out of poverty, said Thibaut Assogba, research professor of economics at Cotonou, quoted by Xinhua news agency .

This program, launched five years ago in Benin, targeted the poorest people, especially women, unemployed graduates and the unemployed during its pilot phase.

It allows the poorest to borrow with an effective rate of two percent, destined to cover the program's operational costs.

Thibaut Assogba believes that Benin's microfinance sector has emerged in recent years as a suitable tool
in
the fight against poverty, thanks to its proximity to vulnerable population and its ease of access.

"The development of microfinance in Benin is seen as a tool to fight poverty because it can reach directly and cheaply those who - by their precarious economic and social situation - feel excluded from national life," he said.

The country currently has a banking rate comprised between three to seven percent, according to figures from the Central Bank of West African States.ADNFCR-2976-ID-801653416-ADNFCR