Paper

Amhara Credit and Savings Institute: Ethiopia

Identifying key success factors of the Amhara Credit and Savings Institute
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This case study of the Amhara Credit and Savings Institute (ACSI) highlights its success in delivering financial services to poor, rural and remotely located communities in Ethiopia. ACSI focuses on low income, rural-based, productive poor, with a special emphasis on women. It provides innovative and diversified savings and credit products to its clients. ACSI disburses pension funds for the government and provides money transfer facilities for businesses.ACSI is exploring provision of money transfers for individuals as well as microinsurance and credit services to water point construction groups. It has considerable scope for continued growth, particularly if it serves more than just the poorest of the poor. The study identifies the following critical success factors that helped ACSI move forward:

  • Operational efficiency;
  • Financial independence;
  • Community involvement;
  • Portfolio quality;
  • Product development;
  • Staff commitment;
  • Close relationship with the Government;
  • Lack of competition.

In conclusion, the paper identifies challenges that ACSI faces in the areas of infrastructure, information flow, ownership and investment, risk management, diversification and State control. It outlines lessons learned from ACSI that could be replicated by the microfinance sector.

About this Publication

By Brislin, N. & Dlamini, P.
Published