The Correlate of Microfinance Services and Food Security in Jigjiga Town, Fafan Zone, Somali Region, Ethiopia
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Date
2021-09
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Addis Ababa University
Abstract
The study was conducted at Jigjiga town of Fafan Zone, Somali regional state, Ethiopia
with the objective of the study of assessing the correlate of microfinance and food security. The
study employed a cross sectional design. Jigjiga town has 20 kebeles and two branches of
microfinance institute, then the researcher selected the main office of microfinance institute by
purposive sampling because the office offers trainings for the participants quarterly like; short
and long term training related to way of receiving, saving loans and credit services and how to
repay based on the signed agreement of the participants. Random sampling technique was used
to select 100 households. Both primary and secondary data sources were used. Correlation
analysis was used to identify associate degree between microfinance services and food security
status of participants in the study area. Repayment of loan have statistically significant negative
correlation (r=-.275**, P= 0.01) that expressed as repayment of loan received by the
participant of microfinance service increases also their food security status decrease. Regarding
to time for repayment fitness by the participants has statistically significant positive relation to
their food security status(r=.221*, p=0.05) that indicated as time to repay the loan increases
also the food security status of the participants increased at 95% of level of confidence which
show that as one of these variable increase or decrease via-versa. According to the descriptive
statistic of the stud, it revealed that 47 (47.0%) of the respondents were male and 53(53%) were
female so this findings revealed that microfinance services participated more women than male
in the study area. According to age of household respondents, 52 (52.0%) of the 100% of the
participants were the age between 30-35 which means that microfinance service practitioners
targeted on the productive age of the poor active participants in Jigjiga town to secure their
future food accessibility
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Keywords
Food security, Loan, Micro saving, Micro credit, Micro insurance, Jigjiga