Outreach Services and Sustainability: The Case of Amhara Credit and Saving Institution

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Addis Ababa University


Now a day’s microfinance is a useful means of intervention for development strategy for Ethiopia, to reduce poverty by reaching people who are unable to offer collateral for formal banking loans. In addition, at present, institutional sustainability is becoming the guiding principle for microfinance institutions. The issues of reaching the poorest of the poor and ensuring sustainability are among areas of ongoing debate in the microfinance sector. This study, therefore, was conducted to evaluate the overall outreach and sustainability performance of the Amhara Credit and Saving Institution using Debre Berhan Main Branch as a case study. In addition assessing whether outreach and sustainability achieved together, assess the socio-economic conditions of the customers of the institution and assess the clients attitude on the services of the institution were among the objectives. Data was obtained from two sub-branches of the institution. In order to collect the data 180 clients and the general manager, loan officers and field workers are selected as sample respondents. Both simple random sampling and convenient sampling methods were employed for questionnaire respondents and interviewee selection. To analyze both qualitative and quantitative analysis were used. Ratio analysis, trend analysis, SPSS and Ms-Excel computer programs in relation with tables and charts were important. The main thought the researcher used was the institutionalist approach that centered both achieving financial self-sufficiency and the number of clients served (breadth of outreach) as a main point. The result indicates that the institution has made its own positive contribution to the clients in relation to increase in wealth condition and gave priority to the rural poor women. Moreover, as the researcher expected, the output of the study also identified that there is no evidence of trade-off between outreach and sustainability, rather positive relationship was observed. Therefore, it institutional sustainability could be accomplished while reaching to the poorest sections of the society, that means both outreach and sustainability were achieved simultaneously.



Credit and Saving