Financial Sustainability And Outreach Of Microfinance Institutions In Ethiopia The Case Of Oromia Credit And Saving Share Company

In microfinance industry, sustainability is one of the crucial issues attracted the attention of manyrnresearchers. This is because it is widely believed that without being sustainable, microfinancerninstitutions can not achieve their objective of reducing poverty. However, some microfinancerninstitutions give little attention to sustainability. They depend on subsidy from government andrndonor organizations. They also concentrate on providing credit services and ignore savingrnservices which result in lack of reliable source of loan funds. These problems were the majorrnmotivations for undertaking this research. This paper attempts to study sustainability ofrnmicrofinance institutions in Ethiopia taking Oromia Credit and Saving Share Company as casernstudy. For this study both primary and secondary data were used. The data gathered werernanalyzed by using ratios and percentages. The results indicate that the institution, like otherrnmicrofinance institutions (MFIs) partly depend on subsidies for the loans it provides. Withrnregard to financial sustainability, it is in good condition. The outreach is increasing in terms ofrnnumber of clients. The overall efficiency of the institution is improving. However, itsrnperformance is weak on areas such as saving mobilization, women participation, and loan officerrnproductivity

Get Full Work

Report copyright infringement or plagiarism