The Development of the Microfinance industry in Ethiopia: performance, problems and prospects.

Course ID
Ethiopian Economics Association (EEA)
Wolday Amha

The delivery of financial services in Ethiopia through the MF is has increased in a brief period of time. Both outreach and sustainability of the microfinance institutions have increased significantly. There is clear empirical evidence that the microfinance institutions are efficient but unprofitable due to low lending interest rates. The MFIs have mobilized significant amount cf saving and addressed the difficult task of reaching the rural poor. This is partly the result of a favorable legal and policy environment in the country. In spite of the significant outreach of the microfinance institution, there are problems of addressing the hard core poor, monitoring the regulatory framework, limited support to micro and small enterprise development, limited awareness of the role of micro finance in poverty alleviation, luck of loan fund, weak legal system, the delivery of supply-driven financial products, low lending interests rates, limited capacity of the national bank of Ethiopia, limited capacity of microfinance institutions and poor infrastructure, which need to be resolved.

Corporate Author:Gebrehiwot Ageba, Jemal Mohammed and Solomon Tesfay (Editors) , Ethiopian Economic Association(EEA) , Department of Economics of AAU & Fredrich Ebert Stifung
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Financial institutions; Micro finance Institutes (MFIs)

Secondary Descriptor:industry

Geographic Descriptors:Ethiopia
Cataloge Date:02/27/2013
Broad Subject heading:Financial service – Micro finance Institutes (MFIs)
Call Number:338.963 PRO 2002
Serial Key Title:Proceedings of the Eleventh Annual conference on the Ethiopian economy
Publication catagory: Annual conference
Content type: EEA Publication
Publication date: 2013-12-27 23:13:00
Forum or Discussion date: 2013-02-27 15:58:23
Conference Place: Nov. 2-4, 2001, Nazareth, Ethiopia
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Thematic area: Policy Reform, Implementation and outcome in Ethiopia
Author: Wolday Amha

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