Is repeated borrowing better at improving MSMEs’ performance and profitability? A PAMF-CI case study from cote d’Ivoire

ABSTRACT This paper investigates the cumulative effect of successive borrowing from Première Agency de Microfinance-Côte d’Ivoire (PAMF-CI) on MSMEs[i] in Côte d’Ivoire. It employs a non-experimental approach to compare established clients with new clients.After controlling for key observable characteristics of these MSMEs, the findings suggest that there are cumulative positive effects associated with longer programme participation, and graduation from first to second and subsequent larger loans is a strong determinant of business performance and business profitability. The results also indicate that men benefit more than women, with gender being the key factor driving the differential impact in this relationship.