Socio-Economic Role of Saving and Credit Cooperatives in Ethiopia (A Case of Ethiopian Airlines Employees Saving and Credit Association)

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The aim of this study was to examine socio-economic role of saving and credit cooperatives in the case of Ethiopian airlines employee saving and credit cooperatives. Descriptive research design was used. The target population comprised 9167 active members with 383 samples using random sampling technique, 14 employees with census inquiry and manager & board members of the association. The study used questionnaires and interview as a tool for data collection. In order to test the reliability of the instrument, the Crobanch alpha test was used. Finally, the responses of the respondents from questionnaire and interview were analyzed separately using descriptive Statistics. The findings of the study showed that credit services provided by the association have economical than societal effect. And credit limit also small and should be improved per members’ request. The association also provide competitive interest rate on its saving service and enable repayment of loan in line with increasing capital resource. And it needs to create awareness and educate members regarding finance management. Non-financial services also not incorporated under its services. It is also advisable to apply one of the models (Linked, Parallel & Unified) regarding integration of non-financial services with microfinance. The association’s employment opportunity also too low and needs improvement not only through self-employment but also hiring individuals by expanding its services.


A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Master of Art in Business Administration (MBA)


Credit services, Employment opportunity, Non-financial service, Saving services, Socio-economic role