THE ROLE OF OMO MICROFINANCE INSTITUTION IN EXPANDING ECONOMIC OPPORTUNITY IN ETHIOPIA: A CASE OF ALLE DISTRICT OMO MICRO FINANCE SUB BRANCH

Abstract

This thesis addresses the Role of Omo Micro finance institution in expanding economic opportunity at SNNPR state with particular reference to Alle district OMFI sub branch. Governments, donors and NGOs have over the years initiated implemented programs aimed at expanding economic opportunity for poor class. Despite these efforts, some knowledge limitations still remain. Microfinance as a tool for poor economic opportunity expanding has become the main subject of many global and regional conferences, seminars and workshops. Ethiopia is not an exception. This study therefore, examined the role of microfinance institution to expanding economic opportunity of lower income class in Ethiopia taking Alle omo microfinance sub branch financial service programme. The outcome of this study would help the government, policy makers and financial intermediaries as well as consumers on the role of microfinance towards economic opportunity expansion of poor in Ethiopia. Beside, the study would be useful to advocates of poor empowerment who can rely on it to make a case for more credit facilities for poors’ to improve their businesses and expand economic opportunity. Lastly, it contributes to further studies as a reference material. The empirical analysis of the study was conducted using descriptive statistics. In this time, Quantitative and qualitative research approach and both primary and secondary sources of data were used. Structured Questionnaires and interview were used. The results showed microfinance institution financial services have a great contribution on expanding economic opportunity as measured by increase in household and individual income of clients of the institution as well as through increasing the clients access to basic social needs after getting the services. Besides, the study showed that access to microfinance has improved the status of poors’ both at family level and in a society as a whole. The study therefore, recommends that Alle omo microfinance should endeavour to extend more credit facilities to poor clients/society to economically empower them. Finally, Alle omo micro finance sub branch should provide more training programs to its lower income class clients in order to improve their entrepreneurial skills and help reduce the problems which hinder their access to microfinance.