IMPACT OF MICRO-FINANCE INSTITUTIONS IN IMPROVING THE LIVING STANDARD, EMPOWERMENT & POVERTY ALLEVIATION OF POOR PEOPLE: THE CASE OF AMHARA CREDIT & SAVING INSTITUTION (ACSI) IN FOGERA WOREDA

Abstract

The challenge Ethiopia faces today is to achieve sustained economic growth for healthy national development and reduce poverty. Thus, microfinance programs have been considered as one of the main instruments in poverty reduction in recent development agenda. It is a means to support the marginalized active poor of the society. Studying the impact of microfinance intervention is important to assess its viability on poverty reduction. The main objective of this study is to find out whether the provision of microfinance services of ACSI MFI has brought changes on alleviating poverty and improving the living standards of clients. Primary data were collected through close-ended and open-ended structured questionnaire from clients as well as using focus group discussions and interviews with the officials and employees of ACSI. Secondary data were gathered from different published and unpublished relevant materials. The study mainly applied analytical approaches such as frequencies, averages and percentages. The impact of delivering financial services to poor clients was analyzed based on some socioeconomic and political indicators in different levels. The finding of the study indicated that ACSI’s micro financing scheme has had a positive impact on improving the living standards of its clients in the study area.