The Impact of Microfinance Services on Clients in Addis Ababa: In the Case of Addis Credit and Saving Institution
No Thumbnail Available
Date
2011-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
In Ethiopia, several micro finance institutiol1s have established and have been operating
towards resolving the credit access problem of the poor particularly to those participants
in the petty business, However, whether micro finance programs are bringing about desired
changes is debatable and some argue that microfinance has been pushing the low-income
people further into poverty,
In light of this, this paper attempts to look at the impact of Addis credit and saving
institutions services on its clients', In order to achieve this end the study assesses the
interventions impact on ADCSI clients and the financial performance of the institutions
while serving the poor.
Quantitative and qualitative data were collected from the institution and its clients to test
the following variables: creation of Employment, income generation, asset formation,
fulfillment of basic needs and financial sustainability, Furthermore, in order to examine
the financial performance of the institution while serving the poorest 5-year financial
statement of ADCS1 is analyzed.
The study finds that the services of ADCS1 are benefiting its clients; there is a significant
difference between new and veteran clients in terms of fulfillment of basic needs, increased
income, and asset formation and the difference is attributed to MF participation. In
addition, the study reveals that ADCS1 is financially and operationally self-sufficient
Key Words: Microfinance intervention, poverty alleviation, financial self-sufficiency
Description
Keywords
Microfinance intervention, Poverty Alleviation