Microfinance Institutions provide financial services to low-income clients and the poor who are excluded from formal financial institutions. Hence, the sustainability of microfinance institutions (MFIs) remains essential. This study examines the relationship between social and financial performance and whether there is a trade-off between both objectives after the 2008 global financial crisis. The study used 735 observations from 105 Microfinance Institutions across 26 countries in Sub-Saharan Africa from 2011 to 2017 and employed the Generalized Method of Moment and Seeming Unrelated Regression for the analyses. The results indicate that increasing the number of customers [breadth of outreach increased the financial performance (return on equity)]. The result also showed that the Percentage of Female Borrowers contributes to the sustainability of Microfinance Institutions due to their higher loan repayment rate than males. In addition, our results document a trade-off between the Depth of Outreach and Operational Self-Sustainability among Microfinance Institutions. The study recommends the following: 1) Microfinance institutions should purposefully increase credit facilities extended to female borrowers since that will make them sustainable. 2) Governments in Sub-Saharan African countries should provide increased financial support in the form of subsidies and tax holidays to Microfinance Institutions operating in very deprived areas, and 3) Management of Microfinance institutions on the continent should regularly re-train and upgrade their staff capacity to effectively assess and manage customers before and after extending credit to them to sustain the industry.

COVID-19 has caused severe disruptions in global economic activities, and its impacts on stock markets cannot be overemphasized. The study employs market model and event study approach with four events (WHO announcement of COVID-19 as a global health emergency, confirmed infections, confirmed deaths, and vaccination) to examine the reactions of four African regional blocs’ markets to the pandemic from September 1, 2019, to August 31, 2021, to estimate the average abnormal returns of each regional bloc. On the day of the WHO announcement, we document insignificant negative average abnormal returns in the Northern bloc. We also document significant negative average abnormal returns for infections in all but the Northern bloc on the event day. The Western bloc generated the highest significant negative average abnormal return (-43 per cent) on the day COVID-19 death was confirmed on the continent. We finally document insignificant average abnormal returns from weeks 1 to 20 after the first vaccination in the Northern and Eastern blocs. The study recommends that investors, portfolio managers, and speculators not panic during similar pandemics since they can generate significant abnormal returns and diversify their investment holdings across the four regional blocs in Africa, as demonstrated by the COVID-19 pandemic.

PurposeThe cost-to-asset ratio is a vital efficiency ratio for any financial institution, as it measures its operating expenses to its asset base. This study uses this ratio to evaluate the efficiency of defined benefit pension plans (DBPPs) in the Republic of Congo using financial and macroeconomic indicators.Design/methodology/approachUnder the financial indicator, the authors apply vector autoregression (VAR) to a dataset covering 120 months from 2011 to 2020. In addition, the authors use 12 years of data from 2009 to 2020 and the random effects model under macroeconomic indicators.FindingsAssets and costs together Granger cause the efficiency of the DBPP. However, there is no Granger causality from the combination of assets and costs on the DB public and industry PP efficiencies. The random effects model results show that macroconnect level variables significantly lower the cost-to-asset ratio, thereby improving the PP's efficiency. Macrodisconnect level variables significantly increase the cost-to-asset ratio, thereby deteriorating PP efficiency.Research limitations/implicationsThe study is limited to a developing economy in sub-Saharan Africa, which may hinder the generalization of the results. Future studies could use panel samples from sub-Saharan Africa so that inferences could be drawn for the continent and comparisons made with others.Originality/valueTo the best of the authors knowledge, this study is the first in sub-Saharan Africa to assess the efficiency of DBPPs using financial and macroeconomic indicators.

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