Economics at your fingertips  

How Effective is Microfinance on Poverty Reduction? Empirical Evidence on ACSI - Ethiopia

Bogale Berhanu Benti ()
Additional contact information
Bogale Berhanu Benti: University of Antwerp, Belgium

No 43BB, Working papers from Research Association for Interdisciplinary Studies

Abstract: As per the World Bank report (2015), in 2000 Ethiopia had one of the highest poverty rates in the world, with 56 percent of the population living on less than (U.S.) $1.25 purchasing power parity (PPP) a day. According to International Fund Agricultural Development (2008), “Under the IFAD, initiated Rural Financial Intermediation Programme (RUFIP), impressive results have been achieved over the past five years in expanding outreach in the delivery of financial services by operationally sustainable microfinance institutions (MFIs) and RUSACCOs, with the clientele growing from about 700,000 to nearly 2 million poor rural households. The programme has demonstrated the potential of rural finance in enabling a large number of poor people to overcome poverty. Women account for about 30 per cent and 50 per cent of beneficiaries of MFIs and RUSACCOs respectively. However, much remains to be done, particularly in improving management information systems and expanding outreach to access-deficit and pastoral areas†Republic (2008). Based on the strategy of poverty eradication, microfinance institutions are playing significant role on the reduction of poverty and increase source of income by providing financial services, such as saving and credit to rural poor household society particularly poor women household. Therefore Amhara credit and saving institution (ACSI) has a significant effect on poverty alleviation and the institution stands for poor rural household and enable them to invest small sum of money in productive activity.

Keywords: microfinance; poverty reduction strategy; sustainability (search for similar items in EconPapers)
Pages: 7 pages
Date: 2019-11
New Economics Papers: this item is included in nep-fdg and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Proceedings of the 15th International RAIS Conference on Social Sciences and Humanities, November 6-7, 2019, pages 303-310

Downloads: (external link) Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working papers from Research Association for Interdisciplinary Studies
Bibliographic data for series maintained by Eduard Burcea ().

Page updated 2020-02-11
Handle: RePEc:smo:ipaper:43bb