Micro Finance And Poverty Reduction: Case Study Of The Economic And Monetary Community Of Central Africa Countries

Abstract

Microfinance is regarded by many international development agencies including the World Bank as an effective mechanism for poverty reduction. However, as pointed out by Zeller and Meyer (2002), the use of microfinance for poverty alleviation is not backed up with sound facts derived from rigorous research. Using survey data of around 2000 observations collected in the six countries of the Economic and Monetary Community of Central Africa, this study provides evidence of positive impact of microfinance on production activities of micro business and on living conditions of low income families.