The Role Of Addis Credit And Saving Institution In Urban Poverty Reduction The Case Ofworeda One Ofyeka Sub City Addis Ababa

The major purpose of this study is to assess the role of Addis Credit and SavingrnInstitution in urban poverty reduction. Poverty is widely prevalent problem in urban andrnrural area of Ethiopia. Hence the government of Ethiopia took micro finance institutionsrnas one of the solutions so as to reduce the level of poverty in the country and issued thernfirst micro finance legislation in 1996 (proclamation 40/96). AdCSI is one of the 27rnmicro finance institutions that have been operating in Ethiopia. There is no a researchrnspecifically done on the role of Addis Credit and Saving Institution in urban povertyrnreduction. Thus, this gap initiated the researcher to conduct study on the role of AdCSI inrnurban poverty reduction. Descriptive survey method was employed to conduct thern------crc-e:csce""accrccc:..,h·. To gather data lOitlie study questIOnnaire, interview, locus group discussi"o"nC=-andrnlife history have been applied. Systematic random sampling method was used tornselect sample respondents. From the total population of 1,610 clients a sample size ofrn310 was selected using Krejcie and Morganformula and questionnaires were distributed.rnData obtained through the questionnaire have been analyzed with descriptive statisticsrn(mean and frequency). Moreover the data obtained using the interview and focus grouprndiscussion have been analyzed qualitatively. The study revealed that Addis Credit andrnSaving Institution has not properly outreached the poorest of the poor segment of thernsociety. But improvements are observed more on the upper poor (who used to earn abovern$ 1.25 per day) in income, employment opportunity creation, medical facilities,rneducational facilities, expenditure, gender empowerment and savings. However,rnimprovement relating to housing condition is less compared to other effects. In generalrnthe respondent clients have observed positive change following their micro finance use inrnall aspects. But there is much untapped potential for improvement in these respectsrnbeyond what has been achieved so far. The institution should also revise its clientrnselection criteria so as to outreach more to the real destitute. In addition, it shouldrnattempt to solve obstacles that prohibit borrowers from taking enough amount of loanrnsize to run their business properly

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