THE IMPACT OF SAVING AND CREDIT PROGRAM ON SOCIO-ECONOMIC CONDITION OF WOMEN IN MIDA WOREMO DISTRICT, NORTH SHOA ETHIOPIA: THE CASE OF ADDIS-ALEM SAVING AND CREDIT UNION

Abstract

The purpose of the study was to find out the impact of saving and credit program on socio-economic condition of rural women in Mida woremo district using Addis Alem Saving and Credit union as a case study. The study was based on three specific objectives that is, to assess the role of SACCOs in improving women‟s income and saving habit, to assess the impact of SACCOs on asset creation by women and to assess the impacts of SACCOs on raising women participation in household decision making. The study utilized a sample of 41 SACCO clients and 84 non-SACCO clients found in the district. They were selected random sampling method. Data were collected through semi-structured questionnaire. All sample participants and non-participants of SACCOs program were visited and interviewed. Focus group discussions were employed to capture information based on consensus and to verify the responses from the individual interview. The study was also used observation method which will enable the researcher and the enumerators to validate the household‟s responses. The data collected through survey were analyzed using both qualitative and quantitative data analysis techniques. Impact of the credit program was assessed by comparing the situation of change in income, and change in expenditure between clients and non-clients of the credit program in two time periods (before and after the credit was advanced). In order to assess the impact of credit on income, and total expenditure, a double-difference analysis between clients and non-clients for two time period (before the loan was advanced to the clients and after the loan was advanced to the clients) was performed. The findings of the study in general revealed that The double difference analysis presented above shows that advancing credit by SACCO to community members in Mida Woremu district brought an income impact of ETB 5783 per annum. The result was significant at p<0.001. Similarly, the intervention has brought impact on the amount of total expenditure of the borrowers, which was estimated at ETB 7196. Again the result was significant at p<0.001.