Browsing by Author "Tamene Melkamu"

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    Determinants of Operational and Financial Self-Sufficiency: an Empirical Evidence of Ethiopian Microfinance Institutions
    (Addis Ababa University, 2012-05) Tamene Melkamu; Ponnala Venkati
    An enduring problem facing MFI is how to attain financial and operational sustainability. Several studies have been conducted to determine the factors affecting the financial and operational sustainability of MFIs. However, there are insufficient studies conducted on this area in Ethiopia. Therefore, this study was conducted to fill the gap. This study is based on quantitative research approach using panel data regression as the main data analysis technique. The study was based on a six years‟ secondary data obtained from the mix-market database for twelve selected MFI in Ethiopia. The study found that average loan balance per borrower, size of a MFI, cost per borrowers and yield on gross loan portfolio affects the operational sustainability of Ethiopian MFIs significantly. Whereas cost per borrower, number of active borrowers and yield on gross loan portfolio affect their financial sustainability. The Study also found that MFIs in Ethiopia are operationally self- sufficient while they are not financially self sufficient. This study recommends microfinance institutions to consider more numbers of borrowers, find ways of serving the borrowers at the lowest possible cost, be able to utilize their short term assets to generate more cash and financial revenues, they should increase the loan size, and finally it has been recommended that they should increase the value of their total assets