Microfinance and poverty reduction: the case of Djibouti

Microfinance is used around the world as a means of combating poverty by improving the living conditions of poor households. Its beneficial effects are particularly well known in developing countries, where it represents an alternative source of financing for poor populations who do not have access to banks. The potential of the microfinance sector has attracted the attention of the public authorities in Djibouti as a means of combating poverty, and significant funding has been invested in this sector. Djiboutian household surveys (EDAM, 2002 and 2012) have shown an increase in poverty. The various anti-poverty policies implemented since the late 1990s have had very little impact on poverty reduction. But can this positive impact of microfinance be generalized? In the case of Djibouti, is microfinance the right response to the needs of the poor? Our book seeks to verify, using empirical data, whether the hypothesis of a positive impact on clients' well-being is still valid in Djibouti.