- Corpus ID: 198949114
Performance Analysis of Microfinance Institutions in Ethiopia
- A. Hasan , Dr. G. S. Batra
- Published 2018
- Economics, Business
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Outreach and performance of microfinance institutions in sub-saharan africa, factors affecting the social outreach of microfinance institutions: evidence from ethiopian microfinance institutions, determinants of credit default of micro finance institution borrowers: the case of hawassa city, sidama region, ethiopia, exploring barriers to remittances in sub-saharan africa series, 13 references, the triangle of microfinance: financial sustainability, outreach and impact, performance of microfinance institutions in asia: dea based efficiency analysis, the microcredit summit's challenge: working toward institutional financial self-sufficiency while maintaining a commitment to serving the poorest families, microfinance handbook: an institutional and financial perspective, field work i: selecting the instrument for data collection*, the microfinance revolution: sustainable finance for the poor., appraisal guide for microfinance institutions, related papers.
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Microfinance Institutions in Ethiopia: Poverty Outreach and Financial Sustainability
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Giday Gebrehiwot
Ethiopia has an estimated population of more than 90 million. Agriculture is the mainstay of the economy and approximately 83.2% of the country's population live in the rural areas. Ethiopia is one of the least developed countries. The per capita income of the country is only USD 550 during the current period. Poverty and food insecurity are the main challenges and fundamental issues of economic development in Ethiopia. To address the issues of development and food insecurity, several microfinance institutions (MFIs) have established and have been operating towards resolving the credit access problem of the poor. The establishment of sustainable MFI that reach a large number of rural and urban poor who are not served by the conventional financial institutions, such as the commercial banks, has been a prime component of the new development strategy of Ethiopia. Healthy financial and operating performance of microfinance institutions is very important for their well-functioning an...
Kedida Sonto
In microfinance industry, sustainability is one of the crucial issues attracted the attention of many researchers. This is because it is widely believed that without being sustainable, microfinance institutions can not achieve their objective of reducing poverty. However, some microfinance institutions give little attention to sustainability. They depend on subsidy from government and donor organizations. They also concentrate on providing credit services and ignore saving services which result in lack of reliable source of loan funds. These problems were the major motivations for undertaking this research. This paper attempts to study sustainability of microfinance institutions in Ethiopia taking Oromia Credit and Saving Share Company as case study. For this study both primary and secondary data were used. The data gathered were analyzed by using ratios and percentages. The results indicate that the institution, like other microfinance institutions (MFIs) partly depend on subsidies...
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aderaw gashayie
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Institutional sustainability and outreach are key issues in micro finance institutions. So, the objective of this study was to assess the institutional outreach and sustainability of Omo Microfinance Institution Hawassa branch. To this end, the researchers used descriptive research design because using this type of research design enables the researchers to assess and describe the present situation of institutional sustainability and outreach of the institution. The primary data was collected from sixty respondents using structured questionnaire. Then, descriptive statistics analysis has been done through SPSS version 20.0 in order to get the reliable findings. Consequently, the result of this study showed that the level of sustainability and institutional outreach is improved by deposit and saving mobilization. Besides, this study revealed that the outreach and sustainability of OMFI Hawassa branch were influenced by constraints such poor loan management, flexibility of loan repayment schedule, and loan defaulting faced by customers. Based on the findings of the study, the researchers forwarded possible recommendations for the OMFI Hawassa branch in order to improve the institutional sustainability and outreach.
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Microfinance, since its' formal discovery in the 1970s, has received global recommendation for its' invaluable contribution towards poverty alleviation and financial inclusion. However, researches in the industry have generated debates on its' financial sustainability and the beneficiaries' financial and empowerment sustainability. This research paper explores relevant secondary literature on microfinance beneficiaries' financial sustainability and Microfinance Institutions' (MFIs) cost efficiency and financial sustainability. Analysis of data gathered from the literature review indicates that most beneficiaries of MFIs are relieved of poverty in the short term. They go back to the poverty bracket in the long run after they do not receive assistance/ support from the MFIs again (Wrenn, 2005 & Simanowitz, 2001). Which Wrenn, (2005) attributed to inappropriate poverty alleviation service design by most MFIs. However, successful MFIs were noted to have cost efficient services; they charge interest rates above the conventional banks to cover their operational cost and to increase credit or loan portfolio. On the financial sustainability of MFIs, the study uncovers that all contemporary financial MFIs have the motive of attaining self-financial sufficiency, however the few that have achieved this goal or shown a clear path of attaining it, have been noted of applying good financial management and operational practices. Among these best practices noted to have been associated with successful MFIs are operational cost-effectiveness, exclusive products design for the depth outreach,
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Ethiopia's economy is the fastest-growing economy in the region, with an average growth of. 9.9% a year from 2007/08 to 2017/18, compa red to a regional average of 5.4%. Ethiopia's real ...
Report, Ethiopia scor ed 3.4 out of 10, and rank ed 109 out of 137 countries in terms of f inanc ial ma rket development (Inter nation al Fina nce Corpora tion, 2019 ).
The three largest micro finance institutions account for 65% of the market share in terms of borrowing clients, and 74% by loan provision. These are Amhara (ACSI), Dedebit (DECSI) and Oromia (OCSSCO) Credit and Savings Institutions. Microfinance institutions are decisive way outs from the vicious circle of poverty particularly for the rural and ...
Using unbalanced panel data (2000-2017) from Ethiopia, in this paper, we investigated the performance of MFIs and its determinants on the one hand and whether or not mission drift exists on the ...
on ground which affects the operations of micro-finance institutions. Both primary and secondary sources of data which are appropriate for the study were collected from two big Microfinance Institutions currently operating in the country using questionnaire. The study units of the research are two micro-finance institutes operating in Ethiopia.
1.3 Statement of the research problem Microfinance has been used as a powerful tool in alleviating poverty in recent years and this is supported by research (Jonathan &Barbara, 2001). The impact of microfinance on women raised their status within their communities and has helped empower women in general with their own economic power.
there are studies that indicate pessimistic kind of result on the impacts of microfinance program initiatives towards reducing poverty (Buckley, 1997; Montgomery, 1996; Rogaly, 1996; Wood and Shariff, 1997). There are also quite a number of research works that have been done on microfinance-poverty linkages in Ethiopia.
WORKING PAPER October 2020 Esayas Mulatu Morka1 and Jane Wamatu2 1 Business development consultant 2 ICARDA. 2 About ICARDA Established in 1977, the International Center for Agricultural Research in the Dry Areas (ICARDA) is a non-profit, CGIAR ... in Ethiopia. Microfinance refers to a broad range of financial services made available to low ...
The Licensing and Supervision of Microfinance Business proclamation number 626/2009 and directives issued by NBE contain a comprehensive package of rules for licensing, registering and supervising MFIs. There are 19 directives issued by NBE that govern the operation of microfinance institutions.
areas in the region [44]. The OCSSCo microfinance institution is one of the country's biggest microfi-nance institutions in terms of loan provision and hav-ing a high number of customers [16].Many research findings in Ethiopia link microfinance to poverty reduction. For instance, Abebe [] on the Special- 1
of donors had placed on microfinance as a tool to achieve the millennium development goals (MDGs), the United Nations declared 2005 as the "year of micro-credit" ( Morduch, 2000). The capacity of the conventional banking sector in Ethiopia has been too weak to serve the need of the rural community. Few woredas in the country have bank branches.
Impact of Microfinance on Rural Household Poverty in Ethiopia: A Review. Poverty is highly affecting the life's of the population of Less Developed Countries (LDCs) in general and that of rural people in particular. High vulnerability, lack of education and medical services, less participation in different decision-making activities are some ...
(HMFI) and Eshet Microfinance Institution (EMFI). Eshet MFI was established (legally registered) by the National bank of Ethiopia, according to proclamation No 40/1996. Based on commercial code of Ethiopia and proclamation No 40/1996 Eshet microfinance established in March 2000 E.C Total number of branch is five.
A. Hasan, Dr. G. S. Batra. Published 2018. Economics, Business. The objective of this study was to assess the performance of MFI in Ethiopia. Thirty-one MFIs operating in Ethiopia had been selected for performance assessment. To analyze outreach, collection performance, financial sustainability, efficiency and welfare impact indicators were used.
PDF | On Sep 6, 2023, Adane Debessa published Microfinance Institutions in Ethiopia: Poverty Outreach and Financial Sustainability | Find, read and cite all the research you need on ResearchGate
Research Design and Methodology 1.5.1 Target Population Currently there are more than 27 microfinance institutions in Ethiopia, who are serving the ethiopian people neglected by conventional financial institutions such as commercial banks. of the 27 MFIs 6 microfinance institutions were selected to participate in the study and The paper was ...
Figure 2.2: Conceptual Framework Model for Measuring Performance of MFIs in Ethiopia Source: Self-design, 2017 III. METHODOLOGY 3.1. Introduction To be a successful outcome of a given research for any study, it largely depends upon the accuracy, quality of data collected and used for research (An. Bras. Dermatol, 2014).
They also concentrate on providing credit services and ignore saving services which result in lack of reliable source of loan funds. These problems were the major motivations for undertaking this research. This paper attempts to study sustainability of microfinance institutions in Ethiopia taking Oromia Credit and Saving Share Company as case ...
shows that the role of microfinance institution is significant in many aspects. The loan given by MFIs for micro and small enterprises contributes for the acceleration of the development process of the country. Based on the proclamation on microfinance business, micro finance
papers, and research reports (Annex 5). 6 2. Overview of micro-finance in Ethiopia 2.1 Existing status of microfinance institutions A key component of Ethiopia's development strategy is the establishment of sustainable microfinance institutions serving large numbers of poor people. While non-governmental organization (NGO) credit schemes
Thus, this s tudy. examined and presented the most prominent factors of financial perfor mance of microfinance i nstitutions in Ethiopia by using. panel data. From a total population of 38 MFIs ...
The purpose of this study was to assess the Assessment of Financial Performance of Microfinance Institutions in Ethiopia. More specifically, the study has attempted to investigate the effect of security administration, loan lending, and loan product management on financial performance of micro finance institutions. The study used mixed research approach in which both qualitative and ...
The document discusses the challenges of writing a thesis on microfinance in Ethiopia. It notes that writing a thesis requires extensive research, analysis, and skills to craft a comprehensive paper. It also notes that studying microfinance in Ethiopia adds further complexity, as it involves understanding the socioeconomic context. The document then introduces BuyPapers.club as a service that ...