OutreachSustainability And Growth Of Saving And Credit Cooperatives

The rural saving and credit cooperatives in Ethiopia are believed important tools to implement various development programs and considered as an alternative financial service provider for the rural poor since the regular commercial banks are not attracted and not interested to address high financial demand yet.Conventional Banks can not lend to poor and very small business due to the risk factor that arises from the informal nature of the business of the poor lack of fixed asset acceptability for collateral susceptibility to business failure and high transaction cost. Due to this global fact conventional banks in Ethiopia also failed to address the rural poor. Hence the unmatched high demand for finance and very limited supply necessitates intervention by member owned financial institution dedicated for the interest and Hence the unmatched high demand for finance and very limited supply necessitates intervention by member owned financial institution dedicated for the interest and well-being of the poor where by the relevance of RUSACCOs is unquestionable. of the poor where by the relevance of RUSACCOs is unquestionable.