The Effect of Micro Finance on Poverty Reduction: The Case of Oromia Credit and Saving Share Company Clients in Burayu Town

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Addis Ababa University


This study assesses the impact of OCSSCO credit program on poverty reduction in selected clients in Burayu City Administration of Oromia Regional state. The study used both primary and secondary data. Primary data were collected through structured questionnaire from active and new (incoming) clients. Secondary data were collected from different books, unpublished yearly or quarterly reports journal of articles, CSA reports and other relevant official reports. Out of a total of 3494 household active clients and 548 new (incoming) clients in list of OCSSCO 565 active clients of which 324 male and 241 female and 88 new (incoming) clients of which 52 male and 36 females were in the sample selected. A total of 242 samples were selected from 653 established and incoming clients which means 209 active client of which 120 male and 89 female and also 33 incoming clients selected of which 19 male and 14 female were selected by using two stage sampling technique. Descriptive and inferential statistics of chi-square test of independence were applied in the study. The impacts were analyzed based on the variables such as income, nutritional status, medical facilities, access to education, saving, women empowerment, and employment creations. The findings indicated that OCSSCO credit program has made a positive effect on households’ income, nutritional status, medical facilities and employment creations. However, the finding didn’t show the effect of OCSSCO on households’ access to education and women empowerment.


A thesis submitted in partial fulfillment of the requirements for the Master of Business Administration (MBA) degree


Clients, Microfinance, Poverty reduction