College of Agriculture and school of environmental gender

and developmentDepartment of Agro-Business and value chain

management
A Practical Attachment Report On saving and credit
Institutionat Sidama zone Arbegona woreda In case ofomo micro
finance.

By:
ID: No, 141/08
Date: December 23, 2018

Hawassa Ethiopia
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Contents pages
Table.1the lone size………….……………………………………………………………………..10iv
Table.2the loan term of borrowers………………………………………………………….11iv
Table.3 Source of finance to administrating of the institution……………………………….11iv
Diagram.1 structure of omo micro finance institution…………………………14iv
Diagram.2 value chain of activity………………………………………………..23iv
Diagram.3 value chain of actors…………………………………………………23iv
Acknowledgementv
Abstractvi
1. Introduction1
1.1Back ground of the performance and challenge of rural saving and credit service management1
1.2Definition of Terminologies2
1.3Mission and Vision of Institution2
1.3.1Mission of the Institution2
1.3.2Vision of Institution2
1.3.3General objective1
1.3.4Specific Objective1
1.4The action taken by the omo micro finance to achieve its goal1
III.District selection1
IV.Group forming1
2. LITERATURE VIEW4
Diagram.1 The structure of the Omo-micro finance institution5
2.2. 1 Chief Executive officer6
2.2 .5 Managerial7
2.3.1 Loan processing department7
2.3.2. Saving Mobilize Section7
2.3.3. Advisory Service Department7
2.4 Financial Department7
2.5.1 Financial transfer section7
2.4.2Credit situate section8
2.4.3 Auditor section8

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 2.5 Human resource Department8
2.5.1 Function of Human resource Management8
3.METHODOLOGY8
3.1 Description of Study area8
Banking service are not available in the district only Omo micro finance credit and saving
institution/organization which is providing its service largest to the rural and urban population9
3.2 Method of data collection9
3.2.1 Source of data10
4. Result and Discussion10
4.1 Back ground of the Omo micro finance Institution10
4.2.1 Role of credit and saving institution and Value chain development program11
4.2.2 The linkage that exist between Omo micro finance institution and other Organization11
4.3 Beneficiary of the Institution12
4.3.1 The service and Benefit that Institution give to the cattle fatteners.12
4.3.2 The criteria that fulfilled by borrowers in order to get this services13
4.4 Activity of cattle fatteners13
4.4.1 Buying Inputs13
4.4.2. Production of Cattle14
4.4.3 Resealing of fattening cattle’s14
Diagram.3 Value chain of actors15
5. SWOT Analysis16
5.1 SWOT Analysis of the Institution16
5.1.1. Strength of the credit and saving Institution16
5.1.2 Weakness of the Institutions16
5.1.3 Problem of the Institution16
5.1.4Opportunities of the Institution.17
5.1.5 Threat of the Institution17
6. CONCLUSSION AND RECOMANDATION17
6.1 conclusion17
6.2 Recommendation18

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Table.1the lonesize………….……………………………………………………………………..10

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Table.2the loan term of borrowers………………………………………………………….11

Table.3 Source of finance to administrating of the institution……………………………….11

Diagram.1 structure of omo micro finance institution…………………………14

Diagram.2 value chain of activity………………………………………………..23

Diagram.3 value chain of actors…………………………………………………23

Acknowledgement
Before all ,I would like to thank my God for every things ,who help me on my track Then after
that I want to thank my family who is support me by different things like, by giving advice on
my activity, supporting with money.

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In addition to that I would like thank Fekaduzake and all members in the Organization who give
unlimited contribution and effort until accomplished my objective, eventual I motivated all over
institution employee politely.

Generally, this Acknowledgment will not be completed without mentioning by sincere

appreciation to hawassa University College of agriculture, school of environmental, gender and

development studies for funding my practical attachment expenses.

Abstract
The major cause of low economic growth and high incidence of poverty. This study was
conducted with the potential performance and challenge of rural and urban saving and credit
service management. The Omo microfinance saving and credit institution with its functions in
south region wolayita zone kindodidayeworeda. Micro finance plays an important role in
economic and social development of society by improving saving habits, providing finance and
6
empowering women. Omomicro finance is a source of financial for entrepreneurs, Micro
business and small scale enterprises that lacking access to bank and related services. Omo
microfinance created different type of opportunity to society by providing finance for who has
ability to work however, restricted by lacking of money to run a business. Omo micro finance
creates an access to save money including credit service to cattle fathers, farmers, women’s, job
creator and small scale enterprises. Omo micro finance organized as general manager,,
operationalmanager s, financial manager and human resource department. There were many
constraint faces when I was doing practical attachment there was lack of necessary materials.
The unwillingness some workers to give adequate information about the study area and history
of the organization is also another obstacle.

ABBREVIATION
 OMF……………………Omo micro finance
 MFIs………………….…micro finance institution
 SNNPR………………….south nation nationality people of region
 SAP………………………structural adjustment Program
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 ADLI……………………..Agricultural Development lead to industrialization
 VCD………………………value chain development
 SWOT…………………….strength ,weakness, opportunity and threat
 ICRFR…………………….International conference on rural finance research
 MFWA…………………….making finance work for Africa

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1. Introduction

1.1 Back ground of the performance and challenge of rural saving and credit service
management

The prevalence of poverty has been a common phenomenon in Ethiopia. The prevailing
operation of the conventional financial institution in Ethiopia is efficient providing financial
service to the poor people who live in the rural area. The challenge racing today is to reduce
poverty and achieve sustained economic growth for development in rural population.

The Ethiopia government has taken policy measure such as:- structural adjustment program
(SAP, poverty reduction strategy paper(PRSP), and agricultural development lead to
industrialization (ADLI), currently, increasing the poor access to Omomicro finance service is
accepted of one of the tool to attack poverty. Omomicro finance is one of the largest
microfinance institutions in Ethiopia. The omomicrofinance was establish in 1992 according to
Ethiopia commercial code and has been operating in SNNPRS which is also the largest and
populous regional state in Ethiopia. Omomicrofinance is devoted to alleviate poverty and
encouraging entrepreneurship through microcredit and saving. It provides small, low cost loans
to poor people and encourages them to develop saving and credit habits in the rural population
(from competed OMF, 2006). It is dedicated to improve poverty and encouraging
entrepreneurship through saving and credit serving the popular by giving money with less
interest rate. It provides small, low cost loans to poor people and encourages them to develop
saving habits and change the life style of the farmers.

To provide need based micro financial service to straighten the economic base of the low
income rural people in study area through increased access to sustainable and cost efficient
financial services.

The district area provides small loans to low income individuals and unemployed citizens
mostly for income generating activities in the study area. (Survey from, 2007). Omomicrofinance
and small enterprises use the loans to run their small businesses that focus on production of
construction materials, wood and metal products, animals fattening, poultry, and other business
activities. In addition to lending money, it offers training and industries the challenges of rural
saving and credit services management to their clients.

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The study area has been providing service to its clients and these services have been bearing
fruits to alleviate poverty through improving the source of revenue of the low-income people by
giving credit and saving service. Because of their life style of many clients has been change
through these services, credit and saving by the study area.

1.2 Definition of Terminologies

Challenges; are complexities, noteworthy and from w/c can overcome.

A challenge is a difficult that bears within it an opportunity for development.

Service; intangible products such as accounting, banking, cleaning, consultancy, education,

insurance expertise, medical treatment or transportation source from interest.

Credit is certain amount of money provide for certain purpose on certain conditions with some
interest, which can be repaid later/sooner.

Saving: the portion of disposable income not spent on consumption of consumer goods but
accumulated or invested directly through purchase of securities.

Performance: the accomplishment of given task measured against preset known standards of
accuracy, completeness, cost, and speeds.

1.3 Mission and Vision of Institution

1.3.1 Mission of the Institution

Providing quality service to the society section to bring fast and permanent Economic change
to the host country by coordinating omo micro finance institution with Governmental and
Non-governmental organization.

1.3.2 Vision of Institution

 To provide financial support to the people who have ability/potential to work but
restricted by shortage of money to build their capacity and to will see institution which
are continuous and competent and deeply work society.

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 1.3.3 General objective
 Supplying strong financial service to the society specially entering women to enable
people economically, which has potential to work but excluded by shortage of money
and to growth up the culture of saving institution in the woreda.
1.3.4 Specific Objective
 Provide technical and societal support to the community to build strong continues
integration between customer and institution.
 To give advisory service to the society.
 To assess the value chain and agribusiness activity being carried out to minimizing
unemployment.
1.4 The action taken by the omo micro finance to achieve its goal
I. Saving services saving is one of the Guarantees to the cattle fatteners as well as the
whole society. This include compulsory saving, voluntary saving, Center and Group
saving.
II. Micro Insurance is an essential Guarantee/surety for the society especially for the
credit customers.
III. District selection
KindodidayeOmo micro finance has its own plan to achieve its objective branch
selection is the one after selection of branch classifying all Keble of Woreda in
cluster. Cluster should be supervised by a customer relation officer thencustomer
relation officer should be uses different criteria and method to leads and supervise
cattle fathers.
IV. Group forming
Forming group can facilitate the work to the institution and strengthen the unity of
cattle fatteners.
It done through
 Assign and induct customer relation officer in kebele with cattle fathers.
 Arrange and adjust the group.
 Give instruction and orientation
 The member should organized be similar in terms of social and economic
status to exercise peer pressure.
Number Borrowers Name Loan size
Initial final

1 Farmers and women 1000 5000/15000

2 Cattle fattener 1000 20,000
3 Employees 1000 10,000
4 Small scale enterprise 1000 150,000
5 Job creation 1000 100,000

 The member of cattle fathers should be from different family.

V. Developing Cooperation
Cooperative with other people to work together from common purpose is the tool
to solve the problem of the society. Towards cattle father’s cooperation is the basic
and indispensable to exchange information, share and lease material, as well as buy
and sell inputs, outputs and equipment.
VI. Identifying customers
 Customers are well known by the deep relationship.
 They identifying through economic and social appraisal process.
 After identifying customers screening customers are following.
VII. Credit delivery
The final and last steps achieve the objective is credit delivery. It is one of the major
services given to cattle fathers to solve problem and create job opportunity.
Credit delivery form
a. Loan size is the amount of money that decided by the institution by saying eligible to the
cattle fattening process. KindodidayeOmo micro finance gives average loan of five thousand
Birr for one period of year to the one individually, but in the case of cattle fathers twenty
thousands.
b. Table1. The loan size d/t from one activity to another based on their requirement.

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c. By loan term

It is the term of days that given to borrowers to return repay money. Loan term of borrowers can
determined at different levels based on the activity the handed.

Table2. The loan term of borrowers

Number Borrower name Loan term

1st time 2nd time 3rd time
1 Farmer and women’s 3month 6 month 12 months
2 Cattle fatteners 3 month 6 month 12 months
3 Employers By month 12 months
4 Small scale enterprise 12 months
5 Job creation 12 months

D.Table 3. Source of Finance/fund to Administering of the Institution

Region of Year Year Year Year Year Year Year Year Year Year Year
SNNPR 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Wolita 8.9 9.3 10.5 11.6 12.3 13.6 16 17.8 22 25.6 35.8
zone million million million million million millio million millio millio million millio
kindodida birr birr birr birr birr n birr birr n birr n birr birr n birr
yeworeda

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2. LITERATURE VIEW
2.1 concept of micro finance

Micro finance is a term used to refer to the activity of previous financial service to client who is
excluded from the tradition system on account of their economic status. These financial services
will most commonly take the form of loans and saving. In other words, micro finance is the
provision of saving Credit and other financial product in small amount to primary poor
customers conventionally, believed not to have the capacity to save as well as considered UN
willing and UN able to pay the high interest rate required to cover credit transaction.

Micro finance means providing very poor families with small loans to help them engage in
productive activity or grow their very small business .

They save and borrow money with interest for home repairs , improvements meet to occasional
and domestic expanses such as food and school feel .indeed , the financial service available to
the poor often have serious in terms of cost risk and conveniences . As a result, over time micro
finance has come to include border range of services (in credit saving, insurance). As the
industry has come to release that the poor and a very poor to lack access to traditional, financial
institution required a variety of financial product. Micro finance is the extension of small loan to
a group of poor people, especially women, for investing itself employment programs. It is a way
of living of the poor, nevertheless poor women who generates income through micro credit.
Micro finance is generally referred as small financial rendered to the poor. It provides credit for
self-employment, small business and includes saving and technical assistance.

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Diagram.1 The structure of the Omo-micro finance institution

CEO

DEPUTY CEO OPERATIONS

Internal audit service
manager

AREA/ DISTRICT Office

manager

INTERNAL AUDIT
MANAGER
Pm&E
OFFICER
AREA LEGAL OFFICER

IS SUPPORT
OFFICER

AREA HR& FACILITY

FINANACE
OPERETIN MANAGER
MANAGER
MANAGER

BRANCH MANAGER Br.Auditor

OPERETION DEPT Other support officers

FINANCE DEPT
/Customer relation officers
/Customer service
2.2 FUNCTION OF THE DEPARTMETS officers
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Sub branch office
2.2.1 Chief Executive officer
The original and higher administration place of the omo micro finance institution was in
Hawassa and the chief Executive officer at there.

The function of chief Executive officer

 Control all District of Omo micro finance institution

 Arrange meeting and discussion time
 Prepare enough training to staffs
 Direct subordinates to work hard to achieve the institution objective
 Design policies & strategies to institution.

2.2.3Area office/ district manager

The original and higher administration place of the Omo micro finance institution was in zone
level and the Area manager attheirHawassa and the chief Executive officer at there.

The function of district manager

 Control all branch of Omo micro finance institution

 Arrange meeting and discussion time
 Prepare enough training to staffs
 Direct subordinates to work hard to achieve the institution objective.

2.2.4 Managerof kindodidayeWoredaOmo micro Finance Institution

Manager, of kindodidayeWoredaOmo micro finance institution appointed by zone

administrator. The selected by his expeditious work and his education evidence.
The function of manager
 Manager all subordinates in the institution.
 Staffing Employers to the work department
 Coordinating the institution with other organization to share resource and
information

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2.2 .5Managerial
He is the vice manager of KindodidayeWoreda credit and saving institution. The help the
manager and control Human resource department.

2.3 Operational Department

 It operates the daily activity of the institution

 Controlling all activities related to cattle fattening
 Record daily activity
The sub section of operation Department

2.3.1 Loan processing department

Prepaid, adjust and arrange credit to the fattener’s

 Preparing journals of barrowers to record their loan

 Situate the way of credit distribution
 Decide the amount of money credited with other department
 Process the amount of money returned to the institution with interest.

2.3.2. Saving Mobilize Section

 Collect cattle fatteners money to save
 Encourage fatteners to save money
 Provide saving account to savers of money

2.3.3. Advisory Service Department

 Handle customers activity to advise
 Advise the cattle fathers How, when how much and what way they save money.
 Advise them how they use the money that they was and will borrowed
 Show the direction of business how they became profitable.

2.4 Financial Department

They carry out the activities that related to money
2.5.1 Financial transfer section
 Bring money from zone and transfer it to cashier.
 Record the amount of money that they were bring from.
 Determine the income and cost of the institution.

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 2.4.2Credit situate section
 Follow the standards of super visor in order to distribute credit.
 Distribute credit only to latter enterer and credit application fulfiller.
 Give credit for individual as well as group.
2.4.3 Auditor section
 Prepares plan how. When and in what way they will check the money and financial
related activities.
 Analysis credit and saving strategies to audit.
 Correct the amount of cash flows (inflows and out flows) from cattle fathers
2.5 Human resource Department
Human resource is one of the tools in the Omo micro finance institution. Without
human resource the operation of institution lefts merely. Sohuman resource are the
horn of the institution and plays major roles.

2.5.1 Function of Human resource Management

 Super vice control, direct the sub ordinates.
 Upgrade the level of employees as the quality.
 Raise the salary amount of employees.
 Manage subordinates as well as equipment’s of the institution.
 Prepare the employees in the ledger of staffs.
 Prepare and hide a Gender profile.
3.2 Method of data collection
Primary data was collected from society a sample of 4 from saving and credit
institution/organization Omo micro finance households and 15responsible people whose
represents 200 Population that participate in rural saving and credit service management
in district.

3.2.1 Source of data

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 both primary and secondary data was used. Primary data were collected from asking
managers of the institiution and from observation.
Secondary data was generated from different written documents, reports in the office and
from an internet browser
3.2.2 Methods of data analysis
A descriptive statistical analysis technique was used to analyze the data obtained from
both primary & secondary source. Descriptive statistics such as mean, maximum,
minimum range and the like was used to describe the data generated from different
sources. The analyzed data was presented in charts based on its natural and suitability.

4. Result and Discussion

4.1 Back ground of the Omo micro finance Institution

Omo micro finance covers the provision of arrange of financial services to low income savings
households including loans, , Money transfer and Insurance, (Monahan and Beck 2007) Omo
micro finance institution found in south region woliyta Zone kindodadayeWoreda established in
1999 E.C. In initially initiated by the private company, but new it owned by government. The
operation area of institution mainly includes kindodidayeworeda and its district at the time of
establishment it started with Eight Employees in 1999 E.C by saving societies money.

The farmer kindodidayeworedaOmomicro finance institution manager wasFekaduZakebut the

later and current finance manager areWondimuTadiwos.

The major function of omo micro finance is rendering service to the society. Such service society
but by other side to get profit. It manages and administrating the Institution by that profit and the
money support they get from other sectors.

4.2.1 Role of credit and saving institution and Value chain development
program
 Arrange of activities aimed at improving food production and the income of urban and
rural poor people are being implements including strengthening of Agricultural

19
 extension services and access to farm input, promotion on and off farm income
generating enterprises to credit and support for measure that build local capacity.
 Kindodidayeworeda credit and saving institution are business oriented institution. It
plays a major role on household’s income in Woredas. It provide loan for business lead
purpose especially for cattle fattening process.
 Institution was mainly based on rendering service in order to get profit to become
profitable and satisfactory. It works to hard solve problems by using all saving capacity.
 If institutions become profitable they increase the salary to the staff member however, it
they get in bankruptcy they might not pay salary to the employees.
 Nevertheless, credit and saving institution in kindodidaye plays a great role in creating
value chain b/n d/t organs. It integrates with other organization such as agricultural,
cooperatives, youth and women, urban houses and women and development agency
organization.
 In addition to this it built strong relationship with savers and creditor customer. In other
side by taking advice from institution borrowers those serves create chain with input
supplier’s advisory agents and with buyers.
Finally, by running these all chain and expand agricultural related business.

4.2.2 The linkage that exist between Omo micro finance institution and other Organization
I. Agricultural and land Administration bureau.
 These organizations should provide and adjust land for cattle fatteners.

II. Cooperative bureau.

 According to the order of credit and saving institution distribute fertilizer.

 They must receive coupon to distribute fertilizer from institution to identify and
differentiate customers and to know who need fertilizer.

III. Women and development agency.

 To empower women who involve in cattle fattening activity.

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  To motivate and to the developments of the woredas.

IV. Finance and development bureau.

 To borrow the money that borrower must repay monthly to the institution if the
borrower were employees.

4.3 Beneficiary of the Institution

 In south region woliyta zone woliyta distinctkindodidayeworeda, there are many
kebeles around 22. For those all have free access of institution services.
Theinstitutions were benefits women’s, farmers, unemployment and especially cattle
fatteners.

4.3.1 The service and Benefit that Institution give to the cattle fatteners.

I. Saving: - all people who involve in fattening activity are able to save his many the
savers of money will get interest and safe his money from thief.
II. Credit:-Omomicro finance provides loan especially for urban and rural cattle fattener
who has ability to work but restricted by shortage of money.
III. Training:- according to their plan all month round they training regularly cattle
fatteners.
IV. Peruses and support
 Checking whether borrower working according to the aim of institution or not
and the way that they took will make them profitable and satisfactory.

V. Translate money to third party

 The saver of money can translate money from his account to another.

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4.3.2 The criteria that fulfilled by borrowers in order to get this services
I. Credit application

 The first in order to borrow money is providing credit application to the institution, then
if the institution accept the application, they give loan however, it they could not accept
the application they will not give loan.

II. Dweller Identification card

 The person must permanently live in woreda can borrow money and get service.

III. Credit guaranteed/surety.

 Borrower must provide human or capital surety

VI. Bud free showing evidence from creditor institution

V. According to pre credit saving standards providing saving expressing certificate.

VI. Bring support letter from living area

4.4 Activity of cattle fatteners

4.4.1 Buying Inputs

Cattle fattening is one of necessary task for food production and development of country. To
fulfill these focus, cattle fatteners buying inputs. These inputs can classified as major inputs and
minor inputs. Major input is type of animal such as Ox, heifer, bull and calf. They buy the cattle
that is suitable to fatteners by includes grass, straw, ever grass or range land they buy. During
buying of inputs they will scan and scouting the market of cattle which exist in woreda or other
area.

The target of input buyers is being inputs by in expensive/cheap price. Cheap price help them to
buy a number of input and after production to will get profit.

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 4.4.2. Production of Cattle

The middle bridge to buying of inputs and receiving of fatten cattle is production. Cattle
fatteners must be produce their inputs to provide it to primary market.

To produce and become profitable /productive they will handle their works according to their
objective.

To fattening cattle they will do that

 Deploying cattle to range or grass land.
 Providing straws, insets, major products of inset(bulb)
 Feeding other by products of agro industry.
 Vaccinating of cattle to control/prevent disease.
 Dry lot finishing by other medicines.

4.4.3 Resealing of fattening cattle’s

Sale is one of marketing process such it is buying of inputs there may be resealing out puts
after production/enlargement. After Production of cattle fattenersfacilitation of sailing
conditions.

They must resale their out puts when it became expedient and chosen by buyers to recover
their debt. They sell out puts when it reaches big and enough to repay their debt and to earn
profit. Most of time cattle fatteners sell their out puts to their customers who are initially
agreed with them to buy. But sometimes they might sell in cattle banal.

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. Diagram.2 Value Chain Activity

Input supply Production Distributes Whole sale

-Fertilizers Enlargement
Retail Export Processor
-Grass -calf Falling
-Range or grass Vaccinating
-Land -bull Consumption
-Straw -ox
-cow

Diagram.3 Value chain ofactors

Input supplier Producer Distributer Whole seller

Kindodidayewored
Advisory body Retailer
a Exporter Processor
or agent
Kindokoyishawore
da
Other relative
Consumer

Investigation
bureau Transportation and
trade bureau

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5. SWOT Analysis
5.1 SWOT Analysis of the Institution
5.1.1. Strength of the credit and saving Institution
The Omo micro finance institution functioning currently exhibit a number of strengths
in their operations.

 It initiated mainly to reduce unemployment

 The service provision is centered or urban and rural people
 It helps to promote the conditions of weaker section
 Guarantying customers by giving loan & saving service
 Training staffs timely to work well
 Informs new information immediately to staff members.
 It participates to improve living standards of the people.
5.1.2 Weakness of the Institutions
 Lack of professional accountant
 Shortage of man power/work force
 Absence of uniform appear latter like banks to parting staffs from other people.
 Narrowness of the office to staff members as well as to store the documents of the
customers
 Sometimes tarry to response to the question or to solve the problem of customer
5.1.3 Problem of the Institution
Traditionally, the role of omo micro finance was considered as a passive descendent to
those until now the society did not accept it as a basic problem solving institution.
However, it was recently recognized that rural finance is a strong tool to contribute
towards rural people development.
The government of Ethiopia cold not budgeting regular budget to the institution as
after organization the institution administering and handle society by support of other
parts and the sailing of customers. Lacks of skilled personnel are the common problem
in WoredasOmo micro finance institution.

25
 The other problem is not Using modern are finance technologies for many of
institution especially those Omo micro finance institution operating in remote rural
areas having poor infrastructure.
5.1.4 Opportunities of the Institution.
 A good relation with the society.
 The expansion of office in order to work better
 Attracting customers by providing indispensable services to expands its publicity
 The benefit of interest that get up from borrowers.
5.1.5 Threat of the Institution
The service of institution provides to the cattle fatteners are no reliable like other type of
business. The businesses of cattle fatteners are depend on the climate /weather market
behavior, demand of consumer. So the main threat is
 If these all condition not suitable to the cattle fattening, they will not
repay/return their debt. Therefore at that time the power of institution become
decrease.
 The institution provide services to the society by these support get from zone,
region and saving of customer if may be these support steps, the function of
institution become weak even the institution approached to close.

6. CONCLUSSION AND RECOMANDATION

6.1 conclusion
This practical attachment report is about what I have done and observed in wolaita zone in
kindodidayeworeda on saving and credit institution. Investigate the saving and credit institution
in the district .Both primary and secondary method. The objective of this study was to develop
ability in theoretically aspect by practically and data collection was by interviews of managers,
written documents and different web site.

The finding of the study revealed that Omo micro finance is contributing a very much in
increasing the development of both urban and rural area through the provision of finance and
developing people saving habit. Omo micro finance is offered service such as saving and credit
to the client. By working this practical attachment I have got different skill and Knowledge, How

26
theoretical fact I have learned in Hawassa University Course is implemented to real world and
how to overcome different challenges and problems.

Omo micro finance Institutions have become an important contributor to the south (SNNPR)
economy. The sector contributes to the regional objective by creating employments
opportunities, training entrepreneurs and generating income for the majority of low income
households.

KindodidayeworedaOmo micro finance credit and saving institution have well activity to society.
So, institution saves the society from lenders that bear high interest rate and by giving loan to the
society in low interest rate. Similarly society develops to the culture of saving in woreda. The
region and its development partners have spent considerable amount of resource in crafting
policies and programs to build the growth of cattle fattening activity in the woreda.

6.2 Recommendation
I recommend that firstly the institution strength that it facilitates the problem of society .The
employees of institution should take /receive training in new skills to improve their expertise in
the business operation. The organization productivity is constrained because of lack of skill
professionals, the shortage of man power, lack of regular budget, narrowness of office and field
equipment shortage are major comments that I give to them, so the administration of institution
should give additional personal, professionals and fulfill the lacking equipment in the office
therefore, to minimize this problem it is advisable to think of another approach in which the
community can participate to have enough man power, enough equipment, lack of regular budget
narrowness of office and contribute in resolving the problem through benefit sharing agreement

Reference

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