Microfinance Institutions in Sub-Saharan Africa

The main focus of this book is to analyze the efficiency of MFIs operating in Sub-Saharan Africa. Data Envelopment Analysis was employed using both intermediation and production approaches. The results from the intermediation approach revealed that the mean technical efficiency, pure technical efficiency and scale efficiency of MFIs in Sub-Saharan Africa were found to be 20.9 per cent, 39.5 per cent and 52.4 per cent, respectively. The results from the production approach revealed that the mean technical efficiency, pure technical efficiency and scale efficiency of MFIs in Sub-Saharan Africa were found to be 23.2 per cent, 36.8 per cent and 69.6 per cent, respectively. The important constraints faced by MFIs in Sub-Saharan Africa were High Operational Costs followed by Lack of Availability of Services and Weaknesses of MFIs in management, governance and staffing. Hence, the sample MFIs opined that reinforcement of capacity and promotion of research, training and capacity building may be promoted to improve the overall efficiency of MFIs operating in Sub-Saharan Africa.