The Impact of Microfinance on Poor Women: A Case Study of Dedebit Credit and Saving Institution (DECSI) in the Eastern Zone of Tigray

Aregawi, Tesfay (2003) The Impact of Microfinance on Poor Women: A Case Study of Dedebit Credit and Saving Institution (DECSI) in the Eastern Zone of Tigray. Masters thesis, Addis Ababa University.

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Abstract

In Ethiopia about half of the population (about 44 per cent) live in absolute poverty. Although the causes of poverty and the corresponding measures to be taken in reducing or alleviating poverty are diverse, the importance of providing microfinance services to the poor is becoming a major tool all over the less developed countries, including Ethiopia When properly designed, microfinace offers a variety of benefits to the poor people. Foremost, microfinance initiatives can effectively address material poverty, physical deprivation of goods and services through increased income, income diversification, consumption smoothing, and reduced variability of income. In Ethiopia the delivery of microfinance services has increased in a short period of time. This study attempts to address the impact of microfinance services provided by DECSI on poor women and their households. In the case study, there is a marked difference in the loan size between male and female clients of DECSI. The loan size of urban clients was also significantly greater than rural clients in both men and women. This study shows that directly or indirectly, microfinance services provided by DECSI are contributing to the sustenance and improvement of the life of the poor women and their households although the impact varies. Generally the study shows that microfinance contributes to Increase in income and diversified sources and reduced variability of income. It has also contributed to Increased consumption and improved living condition in terms of house repairs and expansions and medical services. Another contribution of the microfinance services is capital accumulation in the form of increased saving. Finally it contributed to better position of women in terms improved attitude and respect of their spouses, increased selfconfidence and self-image. On the other hand, microfinance services have limited impact on entrepreneurial development and microenterprising, in sustaining and improving microenterprise profitability, requiring beyond credit services by respective stakeholders. The empirical evidence also shows implications for regulatory aspects of the microfinance services such as reviewing loan ceiling and repayment terms. It also indicated implications for diversifying microfinace products, reducing group sizes and considering lending on individual bases in widening microfinance services to the poor and poorer categories of the society in achieving poverty reduction and in the transition to poverty alleviation and securing development in the country.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HJ Public Finance H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HQ The family. Marriage. Woman H Social Sciences > HT Communities. Classes. Races
Divisions:	Africana
Depositing User:	Tim Khabala
Date Deposited:	13 Sep 2018 14:34
Last Modified:	13 Sep 2018 14:34
URI:	http://thesisbank.jhia.ac.ke/id/eprint/8599

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