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International
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International Journal of Political Science and Development Vol. 5(3), pp. 73–79, May, 2017. DOI: 10.14662/IJPSD2017.011 ISSN: 2360-784X
Research Paper
Performance Evaluation of Omo Microfinance Institute in Southern Ethiopia
Muluken Philipos Borko
Wondo Genet Agricultural Research Center, Agricultural Research Process, P. O. Box 198, Shashemene. E-mail: natinard.philip1@gmail.com
Accepted 2 May 2017
Microfinance has been evolved as an economic development approach
intended to benefit low income people. Therefore, the objective of this
study was to assess the performance of Omo microfinance institute using
the core performance indicators and to forward the possible
recommendation to strengthen the performance of institute. This study
pointed out that there was increment in the number of clients
participated in the service delivery across years. The study also found
out a negative impact on outreach to the poor and the participation of
women clients was small. The results on financial sustainability
measured by return on asset (0.02) and return on equity (0.06) showed
there was difficulty in the institute profitably to sustain the business
and in order to met it objectives in the long run. Under collection
performance view, the study found out that a large percentage of PAR
(11.78) and ALR (62.28%) which was beyond the threshold of 10 and 5
percent respectively. Therefore, the study concludes that the institute
should focus on financial sustainability in order to reduce their
subsidy dependence, ensure survival and growth in the future. To the
policy makers, the study recommends that poverty alleviation programs
need to be accompanied by a targeting strategy and a program structure
appropriate to the needs of the poor. Cite This Article As: Borko MP (2017). Performance Evaluation of Omo Microfinance Institute in Southern Ethiopia. Inter. J. Polit. Sci. Develop. 5(3): 73-79
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