Agricultural Innovation Diffusion through Microfinance – A Spatio-Temporal Analysis

There have been several criticisms leveled at the microfinance industry over the years. One concern raised by many sceptics is that while microfinance has proved to be a poverty-reducing enabler, it is often indifferent or oblivious to the realities on the ground. The standard model does not always seem to apply its self in every encountered situation.

According to Cameroonian researchers E. N Ndenecho and K. H. Akum, microfinance operations in the Mezam division have not had a significant impact on the largely-agricultural population. Through spatio-temporal analysis of primary and secondary data, the authors analyze the adoption and spread of microfinance in the region. The study concludes that while microfinance has had positive but insufficient impact on agricultural development. To make its reach more successful, the authors recommend microfinance institutions make financial and technical assistance available to the poor by adapting to local realities, and structures while introducing innovations within institutions and processes.

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