The Role of Microfinance Institutions in Poverty Reduction and Women’s Empowerment in Ethiopia: The Case of Dedibit Credit and Saving Institution

Abstract

This paper assesses the role of Dedibit Microfinance in poverty alleviation and women’s empowerment in Mekelle city. Data from primary sources were collected through closed ended questionnaire and semi-structured interview. Questionnaire was distributed and collected from 122 clients of seven branches and three sub-branches of Dedibit Microfinance, which located in and around Mekelle city. In addition, one official from head office of the institution was contacted through interview along participant observation. Supplementary to primary data, secondary data from different sources were also collected. It is found that Dedibit microfinance is providing financial services to unemployed and low income individuals or groups who would have no access to formal banking services. It has positive impact on the living standard of the poor people in particular and alleviating poverty in their household in general. It is not only undermining poverty in the city, but also empowering women through surviving and making their life prosperous with dignity and self reliance.

Keywords: Dedibit, Micro finance, Poverty reduction.