Who Benefits the Most from Micro-Credit? Micro-Level Evidence from Sub-Saharan Africa

This paper moves beyond typical mean effect analysis to examine who truly benefits from micro-credit. Utilising household-level panel data from 2010 to 2019 for a sample of Sub-Saharan African countries, via a quantile panel framework, we show that micro-credit has positive outcomes for households below specific welfare levels in low and lower-middle income countries. Conversely, the impact is less pronounced for wealthier households. Our results highlight inequalities in welfare outcomes, particularly favouring households in low to median quantiles. Notably, the effects of micro-credit vary across countries’ welfare levels, with significant impacts observed in low income countries. Policy recommendations emphasise targeting micro-credit interventions towards low to median welfare households to enhance welfare outcomes.

Authors

Publication Details

Journal
World Development
Published
2025-05-01
DOI
https://doi.org/10.1016/j.worlddev.2025.107023
Citations
2
Primary Topic
Microfinance and Financial Inclusion
Type
article
Field-Weighted Citation Impact
6.26
Controls
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article

Who Benefits the Most from Micro-Credit? Micro-Level Evidence from Sub-Saharan Africa

Piers Thompson, John Ebireri, Edward James, Dimitrios Bakas
2 citations
World Development
Microfinance and Financial Inclusion
6.26
article

Who Benefits the Most from Micro-Credit? Micro-Level Evidence from Sub-Saharan Africa

Piers Thompson, John Ebireri, Edward James, Dimitrios Bakas
article en
2 citations

Abstract

This paper moves beyond typical mean effect analysis to examine who truly benefits from micro-credit. Utilising household-level panel data from 2010 to 2019 for a sample of Sub-Saharan African countries, via a quantile panel framework, we show that micro-credit has positive outcomes for households below specific welfare levels in low and lower-middle income countries. Conversely, the impact is less pronounced for wealthier households. Our results highlight inequalities in welfare outcomes, particularly favouring households in low to median quantiles. Notably, the effects of micro-credit vary across countries’ welfare levels, with significant impacts observed in low income countries. Policy recommendations emphasise targeting micro-credit interventions towards low to median welfare households to enhance welfare outcomes.

World DevelopmentVol. 193
Decent work and economic growth
Openalex Percentile: Top 4%
Microfinance and Financial Inclusion
6.26
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