Context

This feasibility study is part of the joined collaboration between the CIDR and Wasasa MFI which aims at increasing the outreach of Wasasa into remote rural areas of the Oromiya Region, in Ethiopia.
Due to the limitations of the current methodology and organisation used by Wasasa in reaching the remote rural areas, a new participative microfinance scheme needs to be developed.
This study has been conducted by CIDR and Wasasa MFI in January 2005 in the East Wellega zone of the Oromiya region, after a first identification mission had been performed in 2004 to select the zones presenting the potential to start such a new scheme.

Contribution

This feasibility study is interesting as it presents the process of implementation of a pilote microfinance project in Ethiopia based on peasants associations’ commitment.

Executive summary

The report presents the objectives of the feasibility study, its methodology and carrying out, a description of the socio-economical specificities of the two selected sub-zones ; and exposes finally the conclusions of the feasibility of a network of rural credit and savings facilities.