Value creation in UEMOA microfinance institutions: The impact of stakeholders

The purpose of microfinance institutions (MFIs) is to lend money to populations that lack the means to access the formal banking system. The various actors involved with MFIs are liable to pursue different and sometimes conflicting goals and interests, which can cause inefficiencies. This article discusses the impact of MFI stakeholders on wealth creation among these institutions in the eight countries that make up the West African Economic and Monetary Union (UEMOA). While the volume of credit given to clients and the quality of each country’s macro-governance index have a positive impact on MFI wealth creation, the results are less clear when it comes to the impact of owners’ or shareholders’ contributions, or public subsidies. In any case, savers, lenders, and female clientele have no significant impact on MFI wealth creation.