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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/1164

Authors: DABA, MOTI
Advisors: Wolday Amha (Dr.)
Keywords: Microfinance, Loan products, saving products, Impact assessement,Outreach, Sustainability, Poverty.
Copyright: 2003
Date Added: 21-May-2008
Publisher: Addis Ababa University
Abstract: Abstract The prevalence of poverty has been a common phenomenon in Ethiopia. The prevailing operation of the conventional financial institutions in Ethiopia is inefficient in providing financial services to the poor. The challenge Ethiopia is facing today is to reduce poverty and achieve sustained economic growth for healthy national development. One of the economic policies of the country is introduction of MFIs in the country. Currently, microfinancing is being practiced in the country as a tool to deliver financial services to the poor with the objective of attacking poverty. OCSSCO, one of the 22 licensed microfinance institutions in Ethiopia, was established in August 1997 in ORNS for this purpose. The objective of this study, therefore, is to find out whether the delivery of financial services of the MFI has made changes on living standard of the clients. Primary data were collected through structured questionnaire from clients and non-clients using simple random sampling method. Secondary data were gathered from different MFIs’ reports and literatures. Both are quantitative and qualitative in nature. Descriptive analysis, dichotomous binary model and sensitivity analysis were applied in the study. The impacts are analyzed based on two approaches. First, the impacts are observed in association mainly with income, which in turn have effects on nutritional status, access to education and medical facilities, employment generation, savings and empowerment, among others. The finding indicates that the OCSSCO’s microfinancing scheme has made positive contribution to the clients in relation with observed variables. The impacts are also evaluated based on MFI’s outreach and sustainability having the conceptual framework that if both outreach and sustainability have been enhanced then the program intervention is judged to have a positive impact as it has created the financial market to the poor. The finding also indicates that in spite of improvement in outreach and sustainability, a number of respondents are looking for the services. However, considering the sustainability of the MFI, the result shows 100% loan repayment performance except the first year of establishment in the study area. Adequate advising, supervision and giving services on time are some of the factors that help in loan repayment performance. The overall objective of MFIs in Ethiopia is to increase the productive potential of the poor and poverty reduction. The study found out the importance of the program. The intervention has enabled the clients to generate income that could be spent on better facilities, which could improve the living standard of clients. Therefore, strengthening the existing operation would be appropriate socio-economic policy. KEY WORDS: Microfinance, Loan products, saving products, Impact assessement, Outreach, Sustainability, Poverty.
Description: A thesis submitted to the School of Graduate Studies, Addis Ababa University, Department of Economics, in Partial fulfillment of the Requirement for the Degree of Master of Science in Economic Policy Analysis
URI: http://hdl.handle.net/123456789/1164
Appears in:Thesis - Curriculum & Instruction

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