Impact Assessment Of Rural Credit On Beneficiary Population Case Of Faranah Prefecture Guinea

The Republic of Guinea has considerable potential in natural resources and an ideal climate for development. The economic and corporate reforms initiated in 1986 to essentially restore macro-economic development did not achieve set targets except the revival of the productive sector and liberalization of monetary and financial system. To remedy this situation, the Government decided in July 1996, to develop a comprehensive strategy for development of Guinea in the medium and long term, and ensure that sectoral and regional policies were in harmony with the overall strategy. This paper focuses on the impact of rural credit on beneficiaries and its contribution to poverty reduction in Faranah prefecture. With the help of the World Bank and International Monetary Fund, institutions of the United Nations system, as well as bilateral and multilateral partners, Guinea has undertaken three structural adjustment programs. The objective of these programs is on the one hand the economic restructuring to restore macroeconomic balances, to increase the mobilization of domestic resources, and secondly, to reduce the dominance of the state in the conduct of economic activities while rehabilitating the private sector. Overall, reforms have mainly covered the restoration of economic balance, the economic potential of the country, and decentralized planning based on the natural solidarity. Because of the scarcity of funding sources, the other forms of financing system (usury, tontines.) have been developed. These experiences outside wear, which by its form factor is depletion, are highly adapted to the informal economy (dominated numerically by the poor and women). The emphasis was given to microfinance by all donors based on the idea that it is an effective way to fight against poverty. In Guinea, the first experiments in microfinance have begun by flaps credits projects, non-governmental organization (NGO) development which unfortunately have not been proven by lack of effective internal management (case of credit unions, for example Fao). It is in this context that we address this issue now entitled＜＜Assessment of Rural credit impact on beneficiary population case of Faranah prefecture Guinea.＞＞.Thus, our intention is to observe measure and assess the dynamics of the interaction between the financial system and the local society. This remains one of the cornerstones in the development process at the base and the micro finance is an effective way in reducing poverty. This present study will allow everyone to get an idea of the mechanism of operation of these funds in terms of impact of credit and this will allow everyone to take precautions to ensure the proper functioning of the development process through the microphone rural finance. To achieve these objectives, the Rural Credit of Guinea is implementing strategic development plans that are made locally by employees and elected management committees. Local plans are centralized at the regional level by delegates that take into account future extensions. The development plan for 2002-2005 is the fifth of its kind since the launch of the fourth phase in October 1998 and the second of its kind since the institutionalization of rural credit company of Guinea in November 2001. It is part of the plan case of consolidation of the company, and is certainly some shortcomings but remains a valuable tool for understanding the past and present to project trends for the coming years in terms of membership, outstanding loans and savings especially financial autonomy.This paper shows that the impact of credit is thus a function of local economic and investment opportunities available to each borrower. The research allowed us to know the types of credit, savings and recovery enjoyed by partners to assess the effects of these on population and location. However, despite these positive results, the fund still faces some difficulties that could impede the mobilization of savings and granting loans to provide autonomy to improve living conditions for socioeconomic development, such as Lack of a policy to encourage savings and shortage of staff in relation to the volume of activity. Faced with these difficulties this study gives some suggestions at the population level, at the rural credit institution of Guinea and fund local Faranah and at the State level.