Assessment Of Microfinance Institutions Social Performances The Case Of Addis Ababa

/viicrofinance programs have been used in many developing countries like Ethiopia as povertyrnalleviation tool. . however. their success depends on the availability 0/ adequatefill1ds. adequaterninstifutional capacity, efficient coordination and active participation 0/ clients in the planning ofrnlI1icrofinance programs. using the CERfSE Social Performance indicator tool, with a certainrnmodification. the study examines the social iJeI/ormance offive MFis operating in Addis Ababa.rnthe collected data were based on the lour social dimensions of MFls: outreach to the poor andrnexcluded; adaptation 0/ products and services to clients; improvement of the social capital ofrnclients; and social responsibility 0/ kiFls. The result shows that the iviFrs are not concernedrnparticularly about social capital improvement. Shortage of loanable .lill1e/. and high employeernturnover are the mCU'or problems lUFfs/acing in addition. discrepancy hetween objective set andrnaetllal performance 0/ kiFis are observed Thus, these MFis need to reline their strategies lI'ithrnregard ta clients social capital. they also need to address high employee turnover and base theirrnaction on objective set.

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