THE IMPACT ON ROLE OF MEKLIT MICRO FINANCE INSTITUTION IN THE LIVELIHOOD IMPROVEMENT OF RURAL WOMEN: MESQAN WOREDA, ETHIOPIA.

Abstract

The Ethiopian economy, like all developing economies, has about 52% of its population being women and mostly found in the rural areas. Therefore there was the need to extend financial services to the rural communities in Ethiopia. This idea gave birth to the establishment of the Micro Finance Institution in Ethiopia. These Institution targeted low income clients through the provision of small loans and other facilities like savings, insurance, transfer services to poor lowincome household and microenterprises. The MesqanWoreda, one of the deprived districts in the Southern Nation Nationality People Region of Ethiopia, was selected to study the Role of Microfinance Institution (MFI) on the livelihoods of women in the area. A case study was adopted for the study. Primary and secondary of data collections methods were used as two sets of questionnaires were administered in the study; one each for clients of the MFI. Systematic simple random sampling technique methods were used to select the clients for the study, SPSS software was used to analyze the data. The main findings were; that the presence of MFIs has contributed to large extend increased in access to credit and savings mobilization. This contributed in women’s ability to improve their petty trading, hence increase in their income, and subsequently led to good health and education for their families, acquisition of assets and taking part in household decision making. Based on the findings it is recommended that financial education be intensified to educate women on financial services. Also establishment of more MFIs should be encouraged to establish their branches in rural areas.