Outreach and Sustainability of Rural Financial Institutions in Sub-Saharan Africa: A Case Study of the CNCA-Senegal

by Biteye, Mamadou

Abstract (Summary)
The thesis measures the performance of the Caisse Nationale de Credit Agricole du Senegal (CNCAS) in terms of outreach and self-sustainability. Outreach is measured the value of loans disbursed by economic sector. The subsidy dependence index is used to assess the degree of financial sustainability. The subsidy dependence index is complemented by a financial-ratio analysis to explore the specific problem areas of the CNCAS.We found that the CNCAS has not generated any additionality in outreach. Since a reduction was observed in the value of loans disbursed and in the number of clients served, outreach actually declined. The CNCAS was not profitable for the last five years. Indeed it has been accumulating losses, therefore sustainability has not been achieved. The CNCAS is heavily dependent on subsidies provided by government and donors, both through below market interest rates, grants, and the reimbursement of part of its operating expenses.The environment of risk and uncertainty, in which the CNCAS operates, and the heavy intervention of the government are found to be the primary reasons for the poor performance of this institution. Remedial solutions are formulated in the recommendations for the government and donors, and for the CNCAS.
Bibliographical Information:


School:The Ohio State University

School Location:USA - Ohio

Source Type:Master's Thesis



Date of Publication:01/01/1997

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