THE PERFORMANCE OF ETHIOPIAN MICROFINANCE INSTITUTIONS, CHALLENGES AND PROSPECTS

Öz

The objective of this study is measuring the performance of Ethiopian microfinance institutions (MFIs) and assessing challenges and prospects of the sector by using 15 sample MFIs over the period between 2003-2009.The performances of the institutions was measured by the most widely applied performance indicators that is developed by the Small Enterprise Education and Promotion Network (the SEEP Network) and Consultative Group to Assist the Poor (CGAP). The finding of the study revealed that the sector outreach in terms of number of active client and gross loan portfolio increase at decreasing rate and the percent of women participation is limited. In addition, it is proofed that most of the Ethiopian MFIs are operationally self-sufficient but not financially sustainable and profitable. Based on the Pearson correlation the study discovered that there is a strong positive association between number of active clients and operationally self-sufficient. Since most of Ethiopian MFIs give group based loan it will be good for them to continue this tradition so as to decrease operational cost per borrower and to increase the number of clients. 

Anahtar Kelimeler

• Microfinance,Outreach,Sustainability,Challenge

THE PERFORMANCE OF ETHIOPIAN MICROFINANCE INSTITUTIONS, CHALLENGES AND PROSPECTS

Öz

Bu çalışmanın amacı, 2003-2009 yılları arasında 15 örnek MFI kullanarak Etiyopya mikrofinans kurumlarının (MFI) performansını ölçmek ve sektörün zorluklarını ve beklentilerini değerlendirmektir. Kurumların performansları Küçük Kurumsal Eğitim ve Tanıtım Ağı (SEEP Ağı) ve Yoksullara Destek Verme İstişari Grubu (CGAP) tarafından geliştirilen göstergeler ile ölçülmüştür. Araştırmanın bulguları, aktif müşteri sayısı ve brüt kredi portföyü bazında sektörel erişimin azalan oranda arttığını ve kadınların katılımının yüzdesinin sınırlı olduğunu ortaya koymuştur. Ayrıca, Etiyopya MFI'larının çoğunun operasyonel olarak kendi kendine yeterli olduğu, ancak finansal olarak sürdürülebilir ve kârlı olmadığı kanıtlanmıştır. Pearson korelasyonuna dayanarak elde edilen bulgulara göre, aktif müşteri sayısı ile operasyonel olarak kendi kendine yeterlilik arasında güçlü bir pozitif ilişki mevcuttur. Etiyopyalı MFI'ların çoğunun grup bazlı kredi vermesi nedeniyle borçluya düşen işletme maliyetini azaltmak ve müşteri sayısını artırmak için bu yöntemi sürdürmeleri iyi olacaktır.

Anahtar Kelimeler

• Mikrofinans,Sosyal Yardım,Sürdürülebilirlik,Mücadele

Kaynakça

1. Alemayehu, Y. (2008). The performance of Micro Finance Institutions in Ethiopia: A case of six microfinance institutions.
2. Amha, W. (2008). A Decade of Microfinance Institutions (MFIs) Development in Ethiopia: Growth, Performance, Impact and Prospect:(2008-2017), Association of Ethiopian Microfinance Institutions (AEMFI).
3. Amha, W., & Narayana, P. (2000). Review of microfinance industry in Ethiopia: Regulatory framework and performance (No. 2), Association of Ethiopian Microfinance Institutions (AEMFI).
4. Beth A. P., Tesfaye, A. & Kiendel, B. (1999). Microstart Project Document. A project document produced for UNDP and the Government of Ethiopia, Addis Ababa.
5. CGAP. 2003. Definitions of Selected Financial Terms, Ratios, and Adjustments for Microfinance. Microfinance Consensus Guidelines. Washington, D.C. http://www.cgap.org/p/site/c/template.rc/1.9.2784
6. Conning, J. (1999). Outreach, sustainability and leverage in monitored and peer-monitored lending. Journal of Development economics, 60(1), 51-77.
7. Cull, R., & Morduch, J. (2007). Financial performance and outreach: A global analysis of leading microbanks. The Economic Journal, 117(517).
8. Ereda, A. K. (2007). Outreach and Sustainability of the Amhara Credit and Saving Institution (ACSI), Ethiopia. A Master Thesis. Department of international Environment and Development Studies, Norwegian University of Life Sciences, UMB, May. html version of the file.

9. Federal Democratic Republic of Ethiopia Federal Negarit Gazeta, Proclamation No. 40/1996, Proclamation to provide for the licensing and supervision of the business micro financing institutions, Addis Ababa
10. Gumel, G. B. (2011). Micro finance institutions in Nigeria outreach and sustainability: Questionnaire survey findings. International Journal of Business and Social Science, 2(9).
11. Hermes, N., Lensink, R., & Meesters, A. (2011). Outreach and efficiency of microfinance institutions. World development, 39(6), 938-948.
12. Kereta, B. B. (2007, November). Outreach and financial performance analysis of microfinance institutions in Ethiopia. In African Economic Conference, Addis Ababa.
13. Lafourcade, A. L., Isern, J., Mwangi, P., & Brown, M. (2005). Overview of the outreach and financial performance of microfinance institutions in Africa. Microfinance Information exchange, Washington, DC.
14. Meyer, R. L. (2002). Track record of financial institutions in assisting the poor in Asia.
15. Otero, M. (1999). Bringing development back, into microfinance. Journal of Microfinance/ESR Review, 1(1), 8-19.
16. Pfister, M. W., Gesesse, D., Amha, W., Mommartz, R., Duflos, W., & Steel, E. (2008). Access to finance in Ethiopia: Sector Assessment study. GTZ, p1.
17. Robinson, M. (2001). The microfinance revolution: Sustainable finance for the poor. World Bank Publications.
18. Schreiner, M. (2002). Aspects of outreach: A framework for discussion of the social benefits of microfinance. Journal of international development, 14(5), 591-603.
19. Schreiner, M., & Colombet, H. H. (2001). From urban to rural: Lessons for microfinance from Argentina. Development policy review, 19(3), 339-354.
20. The SEEP Network and Alternative Credit Technologies. 2005. Measuring Performance of Microfinance Institutions, A Framework for Reporting, Analysis, and Monitoring. Washington, D.C. SEEP Network. http:// www.seepnetwork.org/section/frame/.
21. The Heritage Foundation, Index of Economic Freedom http://www.heritage.org/index/country.cfm?id
22. Tucker, M., & Miles, G. (2004). Financial performance of microfinance institutions: A comparison to performance of regional commercial banks by geographic regions. Journal of Microfinance/ESR Review, 6(1), 41-54.
23. Von Stauffenberg, D., Abate, F., & Bruett, T. (2003). Definitions of selected financial terms ratios and adjustments for microfinance. MicroBanking Bulletin.
24. Wale, L. E. (2009). Performance analysis of a sample microfinance institutions of Ethiopia. International NGO Journal Vol. 4 (5), pp. 287-298, May, 2009.
25. Weiss, J., & Montgomery, H. (2005). Great expectations: microfinance and poverty reduction in Asia and Latin America. Oxford Development Studies, 33(3-4), 391-416.
26. Woolcock, M. J. (1999). Learning from failures in microfinance. American Journal of Economics and Sociology, 58(1), 17-42.
27. Zeller, M., & Meyer, R. L. (Eds.). (2002). The triangle of microfinance: Financial sustainability, outreach, and impact. Intl Food Policy Res Inst.