Challenges of Microfinance Institutions a Case of Addis credit and saving institution

Abstract

The purpose of this study is to assess on MFIs in Ethiopia and more specifically, Addis credit and saving institution operations regarding its challenges. Reviews of research design, the research method, the research approach, the methods of data collection, the selection of the sample, the research process, Sampling Techniques, the type of data Analysis, the ethical considerations and the research limitations of the project. The findings confirmed that Staff training is available of capacity building of all AdCSI employees, HR Office it has Owen problems the procedures and recruitment process are not transparent and clear for all staffs. Management department doesn’t give final decision for some problems it happened in the institutions. AdCSL registered and licensing by NBE at the time of establishment. People often used funds for consumption rather than entrepreneurial investments this is the major weakness of the Clint. The result of study show the lending capacity of the institute limited and restricted amount of money, there is lack of skilled manpower , there is high staff turnover ,Government and the city administration to interfere on the policy and regulation against the financial industry, Government body influence MFIS in order to accomplish its political issues, government assigned inefficient directorate boards member, there is lack of modern financial system, technology and data management most of the time working by manual because of this the service doesn’t deliver efficiently.