Benin Announces 5 Mln USD Microcredit Budget for the Poor

Jul 2017
Benin, July, 15 2017 - Benin's government has increased to 3 billion Cfa francs (5.24 million US dollars) the budget of the program to provide very poor people with microcredit to reduce poverty.

The money marked an increase from the initial budget of 1.2 billion Cfa and is purposed "to lift out of poverty thousands of women and unemployed graduates", source close to the ministry of social affairs said here in Cotonou on Friday.

Initiated in 2007, the program "microcredit for very poor people" has enabled over 2 million people to get out of hand-to-mouth existence in Benin.

Recent report from the United Nations development program described poverty situation as critical in Benin, underscoring that 40.1 percent of the population live below the poverty line.

The same report estimates the Human development indicator in the country at 0.48 in 2015, ranking thus Benin 166th out of 188 countries.

Thibaut Assogba, an economics teacher in a private university in Cotonou, believes a major source of poverty in Benin is the lack of financing mechanisms appropriate to the activities and the needs of populations.

He lamented that a large part of the populations is ineligible for classical bank financing, while about ten commercial banks operate in the market of savings collection in Benin.

"Poverty occurs in various forms in Benin: lack of income and insufficient productive resources to ensure sustainable livelihoods", Thibaut Assogba said.

In the light of the situation, he explained that the program to provide microcredit to very poor people has been successful over the past few years.

Source : Xinhuanet

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