In Senegal, researchers are testing a new contract arrangement between farmers and cooperatives that includes credit, training, and a price premium for certified low-aflatoxin groundnuts on farmers’ decisions to adopt Aflasafe, aflatoxin levels, and output sales.

Youth unemployment—an acute problem in Sub-Saharan Africa—can have long-term negative implications, both on individuals’ quality of life and on broader socio-economic development outcomes. A lack of necessary skills is often cited as contributing to high unemployment, and there is little evidence on what types of training can lead to positive outcomes. In an ongoing evaluation, researchers are investigating the impact of entrepreneurship training and the role of soft versus hard skills on Ugandan youth.

Researchers conducted a randomized evaluation to test whether a performance-based repayment contract could outperform conventional microcredit contracts, or fixed-payment loans, in improving business outcomes and welfare for micro-distributors in Kenya. Micro-distributors who received flexible financing, especially a hybrid loan that adjusted payments based on earnings, had higher profits than those with fixed-payment loans. They also restocked more often, expanded their sales areas, managed their businesses better, and repaid more.