Assessment of the Financial and Operating Performance of Mfis: Vision Fund Microfinance Institution S.C
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Date
2017-06
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Addis Ababa University
Abstract
The objective of this study is to examine the overall financial and operational performances of
Vision Fund Microfinance Institution S.C. for the recent five years (2012-2016). The paper is
used both primary and secondary data sources which were analyzed using qualitative and
quantitative methods applying a descriptive analysis method. Semi-structured interview was with
the key officials of the institution at the head office level. Besides, a review of documents –both
financial and non-financial was also used for the investigation. The major findings of the study
indicate that VFMFI is increasing in terms of its breadth and depth of outreach. VFMFI can
carry on in the future since its profitability is promising. From the financial sustainability point
of view, VFMFI has been gone up the ladder of sustainability measures over those five
consecutive years. The institution also manages its loan portfolio as shown by the ratio of
portfolio at risk (PAR) which is greater than 30 days that declined throughout the years and the
write-off ratio was getting closer to zero by the year 2016. Since the institution spends least costs
in its operating and administrative expenses for serving and providing loan to a single client, the
trend in this regard showed that VFMFI is cost efficient.
Keywords: Micro Finance Institution, Financial & Operation Performance, Sustainability
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Keywords
Micro finance institution; financial & operation Performance; sustainability