The economic impact of cowpea research in West and Central Africa: A regional impact assessment of improved cowpea storage technologies

Researchers from the Bean/Cowpea Collaborative Research Support Program (CRSP), a program supported by the USAID, developed several non-chemical cowpea grain storage technologies in the 1980s. These included hermetic storage in airtight containers, improved ash storage, and the solar heater. Impact studies conducted at the country level showed that the research program was economically a good investment. As the CRSP new storage technologies spread throughout West and Central Africa, a regional assessment including spillover effects became necessary to fully comprehend the impact and guide future research investments. Therefore, this study sought to measure the economic impact of the new CRSP cowpea storage technologies at a regional level. Surveys in seven countries were used to estimate storage technology adoption. Economic surplus was used to estimate annual benefits and internal rate of return (IRR), and net present value (NPV) were calculated to summarize the net benefits. From the perspective of recipients' countries the project was a good investment. The IRR, is found to be much greater than the cost of capital. The regional IRR was found to be about 29%, much higher than the real interest rate on government bonds in West Africa at the time. For example the real interest rate on bonds issued by the government of Ghana in 2004 and 2005 was 8.9% and 5.4% respectively. The IRR is also higher than the private bank real lending rates in West Africa. From the perspective of the principal donor, the US government, the project was a good investment given that the average real interest rate on US government’s bonds was 4.8% during the period. The net present value of the investment amounts to more than 295 million US dollars which yields an annualized value of about 17 million.

► The regional Internal Rate of Return of the investment (IRR) was found to be about 29%.
► The IRR was higher than the real interest rate on government bonds in West Africa at the time (5–8%).
► The Net Present Value (NPV) of the investment amounts to more than 295 million US dollars which yields an annualized value of about 17 million.
► The Project was economically a good investment