Browsing by Author "Mekonnen Getachew"

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    Assessment of the Financial and Operating Performance of Mfis: Vision Fund Microfinance Institution S.C
    (Addis Ababa University, 2017-06) Mekonnen Getachew; Yitayew Abebe
    The objective of this study is to examine the overall financial and operational performances of Vision Fund Microfinance Institution S.C. for the recent five years (2012-2016). The paper is used both primary and secondary data sources which were analyzed using qualitative and quantitative methods applying a descriptive analysis method. Semi-structured interview was with the key officials of the institution at the head office level. Besides, a review of documents –both financial and non-financial was also used for the investigation. The major findings of the study indicate that VFMFI is increasing in terms of its breadth and depth of outreach. VFMFI can carry on in the future since its profitability is promising. From the financial sustainability point of view, VFMFI has been gone up the ladder of sustainability measures over those five consecutive years. The institution also manages its loan portfolio as shown by the ratio of portfolio at risk (PAR) which is greater than 30 days that declined throughout the years and the write-off ratio was getting closer to zero by the year 2016. Since the institution spends least costs in its operating and administrative expenses for serving and providing loan to a single client, the trend in this regard showed that VFMFI is cost efficient. Keywords: Micro Finance Institution, Financial & Operation Performance, Sustainability
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    Determinants of Private Industrial Investment in Ethiopia
    (A.A.U, 1997-05) Mekonnen Getachew; Mulat Teshome
    Despite the importance of private sector in economic development, private industrial investment in Ethiopia has been encountered with a number of serious problems and, as a result, its development level remains low. These problems are related to lack of demand, lack of credit, lack of technology, lack of inputs, inappropriate policy, and lack of infrastructure. This study has identified the root causes of these problems with their degree of severity applying non-parametric techniques. This helps to know how private manufacturing industrial owners and potential investors perceive the impact of financial, regulatory, technical, marketing and other constraints . The response of the respondents indicates that these problems are a serious constraints to undertake industrial investment and expansion. The most severe problems to undertake industrial investment in Ethiopia are related with credit and policy. The severity of the problems which handicapped industrial investment are independent of regional location of industries. Therefore, it is important to policy makers to focus on solutions for common problems of industrial expansion and investment in various regions. In order to understand the partial effects of different factors determining private industrial investment in Ethiopia, OLS regressions for short -run model specifications are estimated for the period 1970/71-1994/95 . The regression results indicates that while the GDP, credit availability, government capital expenditure and real interest rate had insignificant contribution, the retained earnings (the industry's cash inflow) has a significant role in private manufacturing investment