The Role of Addis Micro Finance Institutions on Poverty Reduction: The Case of Addis Micro Finance Institution in Kolfe Sub-City

Abstract

Regardless of a nation's degree of development, poverty is a serious issue for all of them. Fighting poverty and bringing it down to the lowest possible level globally through various interventions is the main goal of development and development studies. Globally, microfinance is regarded as one of the most important approaches for reducing poverty. Thus, the main goal of this research is to evaluate the contribution of Addis MicroFinance Institution's Kolfe sub city microfinance institution to the alleviation of urban poverty as seen from the perspectives of its clients and staff. Convenience sampling was therefore employed to choose, distribute, and interview 20 employees of the Kolfe subcity's microfinance company as well as 303 consumers. The goal of the survey was to determine how customers felt about the role that microfinance institutions played in reducing urban poverty. To present the results as needed, tables and charts using tools like frequency and percentage were utilized to examine the data. The outcome showed that, the AMFI plan had benefited the clients. The impact of microfinance was primarily examined in relation to income, which also has implications for other areas such as nutritional status, assets, healthcare, and job creation. They, like with others, had no means of generating income prior to enrolling in the institution. To solve the issue of urban poverty, it would be desirable to bolster the current operation with additional income-generating mechanisms. In order to assist the impoverished in accessing both financial and nonfinancial services, AMFI should finally review its approach regarding the loan payback duration, the quantity of funds allocated for the intended business, the low quality of its non-financial services.