Sandrine Kablan
Savings and Development Vol. 38(2014), No. 1, pp. 89-111

Our study aims to assess the evolution of social efficiency and financial efficiency of MFIs (microfinance institutions) in West African Economic and Monetary Union (WAEMU). Our results suggest that financial efficiency increases at the expense of social efficiency. Moreover, MFIs that take more risks in extending the distribution of credit to the most marginalised populations tend to have a strong social efficiency at the expense of financial efficiency. Outreach variables have a negative impact on the risk and profitability of MFIs, which confirms the arbitration for sustainability. If both functions (socio-financial efficiency) are considered in a composite index, then good risk management, a good asset capital ratio and subsidies allow MFIs to be both socially and financially efficient.

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