Context

This feasibility study is part of the joint collaboration between the CIDR and ESHET MFI which aims at increasing the outreach of ESHET into remote rural areas of the Oromiya Region in Ethiopia.
Due to the limitations of the current methodology and organisation used by ESHET in reaching the remote rural areas, a new participative microfinance scheme needs to be developed.

A pre identification mission has been conducted to identifiy the zones for the feasibility study. Three districts have finally been selected, those of Seka Chekorsa, Dedo and Goma and Mana, to survey two associations of peasants (PAs) from each.
CIDR and ESHET MFI have conducted the study.

Contribution

Executive summary

The overall objective of the study is to confirm the feasibility of setting up a participative microfinance scheme in rural areas of Jimma zone, to define its components and implementation aspects, and to map out the conditions of its social, technical and financial feasibility.

To do so, the following issues has been adressed :
 Analyse of the socio-economic diagnosis in the selected districts ;
 Elaboration of a new participative microfinance scheme ;
 Test and validatation of the feasibility of implementing the participative microfinance scheme ;
 Defining of a three-year programme.