| Abstract: | Microfinance programs have been considered as one of the main instruments in livelihoods improvement in recent development agenda. Microfinance comprises the provision of financial services including credit and other facilities like savings, insurance, and transfer services to poor household. In light of this, it was the purpose of this Thesis to assess the role of the Specialized Financial and promotional Institution in improving the livelihoods of its beneficiaries in Addis Ababa & the study was guided by basic research questions& relevant data collections. Descriptive analysis method was employed & data were collected from 150 SFPI clients in Addis Ababa through quantitative(questionnaire )& qualitative(KII&FGD )instruments. The data collected through questionnaire was analyzed using percentiles, frequency distributions, and mean while the qualitative data was analyzed using narrations. Systematic sampling technique was applied to select the sample population. The findings revealed that the Specialized Financial and Promotional Institution in Addis Ababa provides a range of micro financial services to its clients that improved the livelihoods of its beneficiaries through credit facilities, savings mobilization, insurance services, and some training supports. The study concluded that SFPI provide satisfactory services in terms of credit loan, savings & insurance services. It also deliver limited non-financial training supports & the company is perceived by clients as a vital firm since it provides them with the much needed funds that improve their livelihoods. However, the study also concluded that: Inadequate supply of loans, high interest rate, lack of conducive and productive working area were among the major challenges standing on the way to further livelihoods improvement. Consequently, it was recommended: SFPI to continuously upgrade itself to address the needs of the clients so as to harmonize operations for more role by making policies at institution level; to continuously supervise, monitor and follow up the clients adequately to avoid diversion of funds; seek Government intervention for regulatory and capacity enhancement activities and work closely with Research institutions for further research to seek solutions for its service areas that need improvement. |
