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Microfinance and Poverty Reduction
Englisch
131 b
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Microfinance institutions in Ethiopia, as is the §case elsewhere in the developing world, have been §established with the objective of reducing poverty. §Therefore, whether this objective has been achieved §merits special consideration by way of impact §analysis. Against this objective, taking a random §sample of 194 farm households, this study examines §the impact of Amhara Credit and Savings Institute §(ACSI) on poverty reduction in East Gojjam, Amhara §region, Ethiopia. Results of the study indicate that §microfinance helps farmers smooth out their §consumption and augment their otherwise meagre §incomes. Otherwise, its impact on poverty per se is §not strong enough to suggest ACSI has achieved its §objective it seeks to meet from the outset. Unless §otherwise business training skills are provided to §the farmers as part of the package, only loan §provisions and savings services may not help a §useful purpose. The repayment period was also found §to be short enough which clients found hard to repay §in time.
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