Socioeconomic impacts of rural financial intermediation program II (RUFIP-II) through cooperative sector: in the case of Ethiopia
Student name: Mr Guche Mekene Meto
Guide: Dr Smriti Das
Year of completion: 2018
Host Organisation: Development Bank of Ethiopia (DBE)
Supervisor (Host Organisation): Mr Tefera Befekadu
Abstract: Rural Financial Intermediation Program II (RUFIP-II) is a financial intermediation program
operating through Microfinance Institutions (MFIs) sector and RUSACCOs sector to
accelerate rural financial service provision for unbanked sections of the community. RUFIPII
has started in 2012 and supposed to end in 2019. So it has been under implementation for 5
years and this is the right for socioeconomic impact of the program to be studied. Given this
background, this study has been conducted in four regional states of Ethiopia, (Oromia,
Amhara, SNNP and Tigray), with the objective of assessing economic impacts and social
impacts of RUFIP-II. Simple random sampling is the method used to select the
households/members from RUSACCOs. The RUSACCOs are sampled purposively based their
performance and two RUSACCOs are selected from two unions in each region (one well
performing and one poorly performing). Total of two hundred households are involved in this
study – twenty-five member households from each RUSACCOs which makes fifty households
from each region. All the households who are member of RUSACCOs have saving deposits
starting from 300.00Etb to 120,000.00Etb per households. The credits from the RUSACCOs
helped households to start new business and others to strengthen their existing business.
Limited/lack of loanable fund is the biggest problem of the RUSACCOs to fulfill the credit
needs of their members.
Keywords: Smallholder, Rural households, financial inclusion, financial intermediation and
RUSACCO,
