Browsing by Author "Amha Wolday"

Now showing 1 - 5 of 5
  • No Thumbnail Available
    Item
    The Impact of Micro-financing on Poverty Reduction: A Case Study of Oromiya Credit & Saving Share Company (Ocssco) In Eastern Wollega Zone of Oromiya National Regional State, Ethiopia
    (Addis Ababa University, 2003-07) Moti Daba; Amha Wolday
    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.
  • No Thumbnail Available
    Item
    The Performance of Coffee Marketing in Ethiopia: The Case of IIIubabor and Jimma Zones
    (A.A.U, 1996-06) Tesfay Solomon; Amha Wolday
    During the era of Derg, there had Deen state monopoly in the coffee trade. the state coffee markecing parastatal (Ethiopian Coffee Marketing Corporation ) wa s ope rating based on fixed price arrangements . Once the state parastatal is in place entry t o the coffee trade was difficult . The system has also reduced competition among traders. The long term effect of such a move was .suppression of producer incentive and production. Hence it was apparent to the transitional government of Ethiopia to liberalize the coffee market at all levels. The main objectives of this study are: i ) to describe the coffee marketing system in illubabor and Jimma zones, ii} to assess the structure of coffee marketing in the study area , iii} to measure the efficiency of the coffee marketing system, and iv} to assess the effect of the reform on performance of coffee marketing and to provide basic information which assist policy analysis. The analysis was carried out by using S-C-P approach. The results show that the liberalization policy adopted has achieved certain improvements in the structure and efficiency of the coffee trade. The reform have lifted the licensing barrier and reduced tax levied on coffee trade and license issuance fees. It has also abounded the restrictions imposed on licensing. The reform have also resulted in the free movement of prices. The bivariate correlation analyses shows that prices in the selected markets are highly integrated with the central market. The Timer's indices and the co integration test also show the same result. There are, however, a lot of shortcomings in the structure and inefficiencies in the coffee marketing . There are high market concentration, lack of capital and credit, and restrictions on areas of operation. In some markets there is also poor market information flow among traders. In view of the efficiency, there appears to be significant seasonality and inter - temporal price inefficiency.
  • No Thumbnail Available
    Item
    The Problem of Wage Determination in Ethiopia: A Case Study of the State-owned Textile Industries
    (A.A.U, 1986-06) Amha Wolday; Mulat Teshome
    The objective of this study has been to identify inter' industry and interpersonal wage differential and to explain the determinants of mean wages and individual wares in the state-owned textile industries. The necessary information was obtained through sample survey and secondary sources ,The coefficient of variation. simple range, percentages,standard deviation, coefficient of variation, Lorenz curve,Gini efficient, multiple linear and semi- logarithmic regression,and principal component methods were used to analyzethe data.The results indicate that 1) the institutional variables such as the government legislations and directives influencethe wage determination process in the state-owned textileindustries . 2) there exists high inter 'industry and interpersonalwage differential. 3) production, profit and fixed assets jointly affect the mean wage differential between the industries. 4) Education and experience within an industry are increasing function of wages. Moreover, the variables sex, marital status, occupation, experience outside the industry,and change of jobs influence the level of wages in the state"'owned textile industries.The paper suggests for the restructuring of the existing wage system particularly the introduction of wage policy on the needs of the economy not only for the textile sector but also for the whole economy .
  • No Thumbnail Available
    Item
    The Problem or Wage Determination in Ethiopia: A Case Study of the State-Owned Textile Industries
    (A.A.U, 1986-06) Amha Wolday; Mulat Teshome
    The objective of this study has been to identify inter'industry and nterpersonal wage differential and to explain the determinants of mean wags and individual wares in the state-owned textile industries. The necessary information was obtained through sample survey and secondary sources, The coefficient of variation. Simple range, percentages, standard deviation, coefficient of valuation, Lorenz curve, Gini efficient, multiple linear and semi- logarithmic regression,and principal component methods were used to analyze the data.The results indicate that 1) the institutional variables such as the government legislations and directives influence the wage determination process in the state-owned textile industries . 2) there exists high inter industry and interpersonal wage differential. 3) production, profit and fixed assets jointly affect the mean wage differential between the industries. 4) Education and experience within an industry are increasing function of wages. Moreover, the variables sex , marital status, occupation, experience outside the industry,and change of jobs influence the level of wages in the state"'owned textile industries.The paper suggests for the restructuring: of the existing wage system particularly the introduction of wage policy on the needs of the economy not only for the textile sector but also for the whole economy.
  • No Thumbnail Available
    Item
    A Structure-Conduct-Performance Analysis of the Ethiopian Microfinance Industry
    (2014-06) Teshome Beza; Amha Wolday
    The main objectives of this study are to analyze the Structure-Conduct-Performance of the microfinance industry and measure the level of competition. In order to achieve these objectives, both descriptive and econometric analyses were carried out. In the econometric analysis, a three-stage-least-squares (3SLS) estimation method was used to estimate a model comprising two equations, each representing the structure and performance of the industry, for a sample of fifteen MFIs for years 2003 to 2011. From the descriptive analysis, it was found that there is no form of collusion among MFIs in terms of their pricing strategies and that the sector is concentrated, with regional-government backed MFIs dominating the industry. However, competition exists between MFIs and banks in terms of saving mobilization. The findings from the econometric analysis revealed that MFI size, capital structure, average loan size and financial self-sufficiency significantly affect the market share of MFIs. Furthermore, average loan size and cost per borrower were found to significantly affect the performance of MFIs, whereas market share and yield on gross portfolio were found to have an insignificant effect on the financial performance of MFIs. The findings imply that in the microfinance industry, performance of MFIs affects market structure, while the structure of the market has an insignificant effect on market performance