Download or read book Financial Sustainability and Outreach of Microfinance Institutions in Ethiopia written by Gashaw Tadesse Abate and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Growing commercialization and competition in microfinance drives the focus of micro lenders from outreach per se to achieving financial sustainability in serving the poor. Such a goal can conflict with the traditional social mission of microfinance - outreach to the poor. In places where credit markets are inefficient, attaining financial sustainability while serving the poor depends largely on the ability of lenders to overcome the costs of market contracts and constraints. Such ability of cost containment often varies by lending terms and organizational forms. Using disaggregated data of microfinance providers in Ethiopia, we compared financial cooperatives and specialized or non-bank microfinance institutions on their outreach, financial performance and ability to achieve financial self-sufficiency together with outreach to the poor. The results show that nonbank microfinance providers perform relatively well in terms of breadth and depth of outreach, but face higher cost, which creates tension between outreach and financial sustainability. In contrast, there exists a positive complementarity between outreach and financial viability for financial cooperatives. On average, financially self-sufficient cooperatives lend small size loans and serve larger proportions of women borrowers, implying a greater depth of outreach together with achieving financial sustainability. While non-bank microfinance providers do better in expanding outreach, based on the findings, financial cooperatives better contain their costs, balance social and economic goals and enable the microfinance industry to fulfill its full promise - serving the poor on cost-covering basis.

Download or read book Managing Growth of Microfinance Institutions MFIs written by Wolday Amha and published by . This book was released on 2007 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Challenges and Prospects of the Ethiopian Microfinance Sector written by Sintayehu Desalegn Ossa and published by GRIN Verlag. This book was released on 2015-09-16 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2015 in the subject Economics - Finance, grade: Masters, Addis Ababa University (National bank of ethiopia), language: English, abstract: The primary objective of this paper was to identify the root causes of the problems and challenges faced by Ethiopian microfinance sector and to, subsequently, recommend remedial measures. In depth interviews have been used to identify and understand the problems and challenges faced by microfinance institutions. This study depicted that Primary cause for all problems is fund shortage and; in turn, the primary cause for fund shortage is insufficient start up equity capital. In addition, ownership structure is identified as supplementary cause of governance problems. Finally, it is recommended that solving these couple of problems is a must to overcome all challenges of the sector as taking measures on other problems is unlikely to provide long-lasting relief from the undesired effect.

Download or read book Financial Sustainability of Microfinance Institutions in Ethiopia written by Bayeh Asnakew Kinde and published by LAP Lambert Academic Publishing. This book was released on 2012-04 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Throughout the world, financial sustainability of microfinance institutions has been one of the issues that has recently captured attention many researchers due to its importance in the livelihood of microfinance institutions. The financial sustainability of microfinance institutions is a necessary condition for institutional sustainability. As it has been argued "unsustainable MFIs might help the poor now, but they will not help the poor in the future because the MFIs will be gone." Moreover, it has been reported that it may better not have MFIs than having unsustainable ones. This shows how indispensable the sustainability of MFIs is, and studying factors that affect sustainability of MFIs and how MFIs can become financially sustainable becomes imperative. Thus, this study was meant to determine the factors affecting the financial sustainability of MFIs in Ethiopia.

Download or read book Microfinance Institutions written by R. Mersland and published by Springer. This book was released on 2015-12-11 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.

Download or read book Cost Efficiency and Outreach of Microfinance Institutions in Ethiopia written by Gashaw Tadesse Abate and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a stochastic frontier approach, we analyse the imposition of financial sustainability requirement on the traditional social mission of microfinance - outreach to the poor. We also address whether the way ownership is organised and practiced affects the costs of microfinance delivery. Based on a disaggregated 107 sample microfinance providers in Ethiopia, the results suggest that outreach to the poor and achieving financial sustainability (as measured by cost efficiency) are contradictory objectives. Microfinance providers that are closer to the best practicing cost frontier are those with higher average loan sizes and lower proportion of women borrowers. The results also indicate that financial cooperatives are better in cost containment compared to specialised microfinance institutions.

Download or read book A Critical Synthesis of Poverty Reduction Through Microfinance in Ethiopia Regulatory and Operational Challenges written by Getachew Dinsa Amente and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Microfinance Industry In Ethiopia Outreach Performance written by Tamrat L. Fitamo and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Micro finance is among major interventions that are being carried out throughout the world particularly following the corridor of poverty - Africa, Asia, and Latin America - as a tool to alleviate poverty. Ethiopia is among few world countries which are currently in fast economic growth. The role of microfinance institutions in the economic growth of the country is very significant. To guide the institutions on the right truck it needs scientific research. Therefore, this research has been carried out to analyse the trend of changes in credit provision, savings mobilization, and geographic and financial accessibility of the institutions to the active poor. Correlation analysis between credit provided and savings mobilized together with predictive regression models are unique parts of this study. The book will have paramount importance to managers of Microfinance institutions, policy makers, donors, creditors, and those who are engaged in providing trainings on microfinance and related issues

Download or read book Review of Microfinance Industry in Ethiopia written by Wolday Amha and published by . This book was released on 2000 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Microfinance Institutions in Ethiopia Kenya and Uganda written by Gashaw T. Ayele and published by . This book was released on 2014 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance of the Deposit Taking Microfinance Institutions MFIs in Ethiopia written by Wolday Amha and published by . This book was released on 2008 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Microfinance Services on Clients in Addis Ababa written by Tofik Musema Nuri and published by LAP Lambert Academic Publishing. This book was released on 2012-03 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many questions have been raised about micro-finance and its importance as a means for poverty alleviation. As donors and practitioners become increasingly concerned about the quality of their interventions, interest has grown in developing clear and precise measurement methods. Who should be considered as a poor client? Why is it necessary to target poverty? How can a micro-finance institution (MFI) target the poor? What should be the best approach for targeting the poor? How can a MFI simultaneous focus on the very poor and face the challenge of sustainability and outreach? To what extent can financial and non-financial services help improve the living conditions of the poor?This book will try to answer these questions and reading it is very helpful.

Download or read book Microfinance Handbook written by Joanna Ledgerwood and published by World Bank Publications. This book was released on 1998-12-01 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of the 'Microfinance Handbook' is to bring together in a single source guiding principles and tools that will promote sustainable microfinance and create viable institutions.

Download or read book Financial Sustainability Liquidity and Outreach of Deposit taking Microfinance Institutions written by Zibusiso Moyo and published by . This book was released on 2020 with total page 219 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Microfinance Schism written by Jonathan Morduch and published by . This book was released on 1998 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Performance and Outreach written by Robert J. Cull and published by World Bank Publications. This book was released on 2006 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.

Download or read book Microfinance in Africa written by S. Rajagopalan and published by . This book was released on 2009 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa is home to some of the poorest and vulnerable populations in the world. The ten poorest countries in the world are in Africa. Sub-Saharan Africa is the region with the highest incidence and greatest depth of poverty in the world. Fewer than one in five adults in Africa has access to the services of a formal or semi-formal financial institution. Microfinance in Africa is growing, though. A broad range of diverse institutions offer financial services to the poor and low-income clients in Africa. These include non-governmental organizations, non-banking financial institutions, cooperatives, credit unions, rural banks, Rotating Savings and Credit Associations (ROSCAs), postal financial institutions and an increasing number of commercial banks. Increasingly, technology is being used to expand microfinance outreach mobile phone banking is one such example. This book provides an overview of the microfinance sector in Africa, reviews the performance and impact of microfinance institutions in the region, and outlines some of the opportunities and challenges that African microfinance has on hand.