Working conditions of microfinance institutions in Ethiopia Reda Tsegay Berhane1a,1b, Prof. Rao K.S.2 1aPhD Scholar, Andhra University, Visakhapatnam - 530 003, Andhra Pradesh, India 1bAssistant Prof. (M.SC.), College of Business and Economics, Aksum University, P O. Box 1010, Aksum, Ethiopia 2Professor of Accounting and Finance, Department of Commerce and Management Studies, Andhra University, Visakhapatnam- 530 003, Andhra Pradesh, India Online published on 28 January, 2015. Abstract The development of Microfinance in Ethiopia was viewed as an identification of considerable levels of unrealized demand and potential market growth for financial services and a shift by the NGO sector and government from relief assistance to sustainable development which crisscrosses at the point of institutionalization of microfinance provision. The main objective of the study is to evaluate the working condition of MFIs in Ethiopia and to provide possible suggestions and recommendations for the improvement of MFIs in Ethiopia. The researcher uses random sampling and from the 31 MFIs registered in the National Bank of Ethiopia the researcher takes a sample of 20 (twenty) microfinance institutions. The collected data were analyzed using descriptive statistics and STATA software has been used. The regulatory framework and directives issued by NBE has defined entry requirements that have to be fulfilled by those who are interested to be engaged in Microfinance business. In Ethiopia there are different types of loans, broadly these are individual loans and group based loans. The collateral used for the different loans are also different and this creates an opportunity for the different parts of the society to have an alternative option. Top Keywords Collateral, Ethiopia, Loan Methodology, MFIs, Regulatory requirement. Top |