This article aims at analyzing the individual and environmental factors that determined the loss of the savers to a Ponzi scheme known in Benin as ICC et al. Data was collected on the populations of Cotonou thanks to an investigation with 5000 households representative of the city. A multilevel logit model was used to research the environmental and individual factors that lead a man or a woman into investing their savings in an illegal institution. The analysis of the results emphasizes the fact that individual variables like the level of education and living standards have a significant and negative impact on the loss of the investments. On the other hand, the environmental variables having a significant impact on the probability of losing one’s investment or not are: the availability of a certain number of microfinance institutions, the number of markets, terminals and car parks, the availability of membership organizations and the number of Protestant churches. Whoever has lost their savings in the ICC services et al. institutions is an uneducated man or woman, who belongs to the poorest 20%, and lives in a district where there are no formal savings institutions. What is the incidence on public policies?
Prof. Dr. Bilal BİLGİN