Cost-Benefit Analysis of the Cocoa Livelihoods Program in Sub-Saharan Africa

Billions of dollars flow into low-income countries each year to help alleviate poverty. Assessing the effectiveness of these dollars is necessary to measure program success and to allocate such funds among competing projects. This study measures the impact of the first phase of the Cocoa Livelihood Program (CLPI), a current World Cocoa Foundation project sponsored by the Bill and Melinda Gates Foundation. The project seeks to improve the livelihood of over 200,000 small cocoa producers in Sub-Saharan Africa via training, crop diversification and farmer based organizations. Using data collected from 2,048 pre and post CLPI interviews of cocoa producers in Ghana, Cote d’ivoire, Nigeria and Cameroon, the economic impact of the CLPI program can be estimated. The results show that yield enhancements attributable to CLPI are 36%, 38%, 49% and 24% in Ghana, Côte D’Ivoire, Nigeria and Cameroon, respectively. Using a total program cost of $158-$200 per beneficiary and estimated annual benefits of $86-$152 per beneficiary over 25 years, the benefit- cost ratios were estimated to range from $13 to $22 for every dollar spent on human capital development.