Automation and Digital Transformation of informal and

semi-formal
Financial sectors and markets in Ethiopia such as iqqub, iddir and
Savings, credit and selling by fast chance co-operatives
Project background

Two of the most important informal financial institutions in Ethiopia, the iqqub And iddir, have
remained the preserve of anthropologists and sociologists. The Only serious available economic
analysis of the informal sector is that of which brought to light the nature and Relative economic
importance. of this sector in Ethiopia. However, there are Still different aspects of the sector
which need further investigation. For Instance, no attempt has so far been made to identify and
characterize the Iqqub and iddir. The literature to date has focused only on urban areas and has
Neglected the informal sector in the rural areas. Little empirical evidence has
Been generated to substantiate the possible linkage between the formal and Informal sectors.
Moreover, no attempt has been made to investigate the

Household characteristics of participants in the informal and semi-formal Sectors. The semi-
formal sector ( Savings and credit co-operatives), in Particular, is an area that has hardly been
treated by researchers.

The basic purpose of this document is to automate, digitize, analyze, and implement empirical
data and information on the Informal and semi-formal financial sectors in Ethiopia with a
software to modernize our better use of encompass their economic importance. In so doing, it is
hoped that the removing gaps in the sector can be filled. The study

Focuses on the iqqub and iddir in the urban and rural areas and on the savings

And credit co-operatives.

Two basic approaches were followed in generating the data required for this

Study. First, the relevant institutions (Le. The iqqub, iddir and credit

Co-operatives) were studied. For this purpose, questionnaires were prepared and

Addressed to the leadership of the institutions concerned. In addition,

Interviews were conducted and documents investigated. The same procedure

Was followed in both urban and rural areas. Second, household surveys were

Undertaken to study the characteristics and opinions of the participants. In

Addition, the participant-observation method was used to generate

Complementary information.

The case study approach was taken as the basic method for generating the
Required data. The major case study was of Addis Ababa University (AAU).

The university was selected because it has perhaps the largest work-place iddir