PRODUCT IMPLMENTATION STRATEGY: THE CASE OF GASHA MICROFINANCE SHARE COMPANY

Abstract

The study was conducted in Gasha Microfinance Share Company which is found in Addis Ababa. The purpose was to assess the product implementation strategy of GMFI. The study was conducted in four GMGI branches. These branches are Yeka, Entoto, Bishoftu and Adama. The major findings of the study are summarized as follows. The study shows that clients have a strong say in deciding on issues related of GMFI products (savings, credit receiving , loan repayment and loan utilization). Participation in GMFI services has improved the clients’ income because they launched new ventures and also expand their economic activities horizontally and vertically. Clients have also created assets, due to improve decision making on receiving credit, savings and improve income as a result of GMFI services. The finding also indicates that in spite of improvement in outreach and sustainability, a number of respondents are looking for the services. However, considering the sustainability of the MFI, the result shows 100% loan repayment performance except the first year of establishment in the study area. Adequate advising, supervision and giving services on time are some of the factors that help in loan repayment performance. Primary data were collected through structured questionnaire from clients and Non-clients using simple random sampling method. Secondary data were gathered from different MFIs’ reports and literatures. Both are quantitative and qualitative in nature. Descriptive analysis, were applied in the study. The overall objective of GMFI is to improve financial and non- financial services to meet the poor needs.