Author(s)

Parveen Ngum Neba, René Guy Omenguele, Jules Roger Feudjo

Management Sciences, University of Dschang, Dschang, Cameroon.

Microfinance is a means of the struggle against poverty in developing countries through financing activities that generate incomes for poor households. The concern of trying to render effective financial services to the impoverished has brought up an in-depth argument among the Institutionalists and Welfarists school of thought. This opposition faces two requirements of Micro Finance: targeting the poorest among the poor (social performance) and enhancing the profitability of the institution (financial performance). The main research question is asking if there is a trade-off or mutuality between financial sustainability and outreach of MFIs affiliated to CamCCUL and MC² while the main objective is to investigate if there is trade-off or mutuality between financial sustainability and outreach of MFIs. After due research on 40 MFIs affiliate to CamCCUL and 40 from MC² on the Efficiency of these MFIs using Data Envelope Analysis (DEA) and the Censored Tobit model for the period of 2015 and 2016, we can say that on an average base, both networks are not efficient and averagely, there is trade off in both network; however, those affiliated to MC² are socially performing than CamCCUL and on the other hand those affiliated to CamCCUL are financially performing than MC². We also realised that, the size of an MFI, its location, subsidies and other related factors have a great influence on their efficiency.

Financial Performance, Microfinance Institutions, Social Performance, Institutionalists Welfarists, DEA, Censored Tobit Model

Neba, P. , Omenguele, R. and Feudjo, J. (2020) Efficiency of Microfinance Institutes (MFIs) in Cameroon: A Comparative Analysis of MFIs Affiliated to CamCCUL and MC2 Using DEA Approach and the Tobit Censored Model. Open Journal of Business and Management, 8, 467-491. doi: 10.4236/ojbm.2020.82029.