The Contributions of Innovative Finance in Promoting Economic Resilience in Africa: A Comparative Case Study of Chad and Kenya

Abstract:     
Kenya and Chad are victims of various internal and external shocks that includes the recent global financial crisis. Both macro and micro actors always intervened in addressing these shocks. Most studies however have concentrated on macro interventions. Micro actors too do play a role in cushioning the negative effects of the various crises especially amongst the grassroots.

This study examines the appropriate internal response mechanisms to the internal and external shocks within the social safety nets of the grassroots. In doing this it has embraced a comparative approach of the two countries with the aim of showing how shocks and their effects are felt and addressed in different locations of Africa. Data used in the study was taken from various sources including the World Bank Database, Central Bank of Kenya, World Trade Organization Database and mixmarket.org.

The study found that both countries experienced external and internal shocks over the last decade. These shocks were of different magnitudes and scale and affected several economic sectors. Governments on one hand had a macro-sectoral approach. At the micro level developed innovative finance did also contribute in cushioning the shocks arising from different types of crises by helping the grassroots stay afloat.

Number of Pages in PDF File: 24

Keywords: Financial crisis, Internal shocks, External shocks, Resilience

working papers series