Abstract:
The aim of this thesis was to assess the effect of MFI’s service on poverty reduction in Jimma
city. To this end, two sets of quantitative data on (MFIs services& poverty reduction) were
collected simultaneously through closed ended standardized survey instruments and poverty
reduction indicator’s survey instrument. Data was collected from 390 respondents, who were
randomly sampled from 15000 Oromia credit and saving share company’s (OCSSCO) active
clients in Jimma city. The two sets of quantitative data were analyzed using descriptive (Mean
&St. deviation) and inferential (a Pearson r correlation and a linear regression) statistics
through SPSS version 20. The first major finding of this study revealed that, the level of service
delivery inOromia Credit and Saving Share Company (OCSSCO) is low which signifies that
active clients of MFI (OCSSCO) in Jimma city are not satisfied by the service delivery of the
company. Despite of this, however, clients’ perception is positive towards the contribution of
OCSSCO in reducing poverty in the study area. The other major finding of this study revealed
that MFI’s service is strongly correlated and has a significant effect on poverty reduction.
Moreover, this study also identified that, saving service of MFI has relatively high significant
effect on poverty reduction; microcredit and training are the next. However, insurance service of
MFI has no significant effect on poverty reduction in the study area. Finally, the researcher
strongly recommends that MFIs office leaders and their experts found in Jima city to conduct
survey on their own service delivery, study it, and create an action plan for further improvement
of their service. The researcher also recommends that, MFI’s office leaders and experts in
Jimma city should become search for the variables that more support their poverty reduction
campaign and they need to study it and plan for further strategies to fight against poverty.
