Assessment of Microfinance Institutions' Social Performances: The Case of Addis Ababa

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Date

2008-06

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Publisher

A.A.U

Abstract

/viicrofinance programs have been used in many developing countries like Ethiopia as poverty alleviation tool. . however. their success depends on the availability 0/ adequatefill1ds. adequate instifutional capacity, efficient coordination and active participation 0/ clients in the planning of lI1icrofinance programs. using the CERfSE Social Performance indicator tool, with a certain modification. the study examines the social iJeI/ormance offive MFis operating in Addis Ababa. the collected data were based on the lour social dimensions of MFls: outreach to the poor and excluded; adaptation 0/ products and services to clients; improvement of the social capital of clients; and social responsibility 0/ kiFls. The result shows that the iviFrs are not concerned particularly about social capital improvement. Shortage of loanable .lill1e/. and high employee turnover are the mCU'or problems lUFfs/acing in addition. discrepancy hetween objective set and aetllal performance 0/ kiFis are observed Thus, these MFis need to reline their strategies lI'ith regard ta clients social capital. they also need to address high employee turnover and base their action on objective set.

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Keywords

Case, Social

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