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