FINANCIAL PERFORMANCE ANALYSIS OF GOHE COOPERATIVES SAVINGS AND CREDIT UNION IN BURE WOREDA, ETHIOPIA

Sambasivam Yuvaraj, Biruk Ayalew Wondem

Abstract


This study was conducted in Gohe Cooperatives Saving and Credit Union in Bure Woreda to analyze the financial performance by using the data set disclosed in four years annual audit reports of the financial statements and questionnaire Survey that was carried out on 132 general assembly member representatives to collect information on the saving mobilization strategies efficiencies and loan services. Participatory discussion with management boards; and in depth interview with control committee, manager, and accountant were carried out on saving mobilization and loan services of the union on how they are mobilizing members saving and delivering quality credit to members. This paper examines the financial performance on the financial health, sign of growth trends, efficiency of saving mobilization and the loan services strategies. The health check up and sign of growth trend conducted in the framework of most common financial ratios of PEARLS on the basis of available financial data concludes that ‘Gohe’ has unhealthy position on liquidity; inadequacy of capital; though healthy assets quality in delinquency  non-earning assets are greater than the standard set by the WOCCU model. The efficiencies of saving mobilization & loan service, however, the union able to get good members attitude and perception on saving security, return on members saving, professional services, credit appraisal technique and loan service the union faces the problem of loan able funds, absence of technical assistance of professionals, and sometimes members were not able to pay loan repayment on the due date, limitation in providing diversified services.


References


Associates in Integrated Development (AFRICA) Limited (2007). Refresher Course for RUSACCO Union Managers in Ethiopia. Addis Ababa: AEMFI.

Association of Ethiopian microfinance institutions (AEMFI) (2008): Financial ratio analysis and interest rate setting for saving and credit cooperatives. Addis Ababa: AEMFI.

Berhane, K. (2008). The status of RUSACCOs in Ethiopia Report. Work shop held on22-24 July 2008, Addis Ababa: http://www.afraca.org/puplications.RUSACCOs.doc. (Accessed on October.5/2009)

Branch Brian and Christopher Baker. (2000). Overcoming Credit Union Governance Problems. in Safe Money, edited by Glenn Westley and Brian Branch. Washington, D.C.: Inter-American Development Bank. http://www.WOCCU.org. (Accessed on September, 29/2009).

Bureau of Finance and Economic Development (BoFED) (2009). Baseline Data and Report. Bahir Dar: unpublished.

Consultative Group to Assist the Poorest (CGAP) (2005). Working with saving and credit cooperatives. Washington DC: CGAP. http: //www.saccol.org.za/saccos.htm. (Accessed on September, 29/2009).

Christen R., E. Rhyne, R. Vogel, and C. McKean. (1995). Maximizing the Outreach of Microenterprise finance an Analysis of Successful Microfinance Programs, USAID Program and Operations Assessment Report No. 10, Washington DC: USAID.

Cobia, D. W. 1989. Cooperatives in Agriculture. Prentice Hall, Englewood Cliffs, New Jersey.

Central Statistical Agency (CSA) (2007). Statistical base line report. Addis Ababa: Ethiopia.

Elser, L., Hannig, A., Wisniwski,S.E. (1999).Comparative Analysis of Savings Mobilization Strategies. Washington D.C: CGAP

Food and Agricultural Organization (FAO) (2001). Safeguarding deposits: Learning from experience. Rome. Agricultural service bulletin 116.

International Fund for Agricultural Development (IFAD) (2001). Report and Recommendation of the President to the Executive Board on a proposed Loan to the Federal

Kalifa, A. (2006). The experience of Oromia credit and saving Share Company in growth management. Addis Ababa, Ethiopia paper published on AEMFI proceedings of the bi-annual conference of microfinance development in Ethiopia, Mekelle, Tigray.

Krishnaswami, O. R., Kulandiswamy, V. (2000). Cooperation concept and theory. India: Arudra Academy.

Schmidt, R.H. C.P. Zeitinger. (1996). Prospects, Problems and Potential of Credit-Granting NGOs, in: Journal of International Development 8 (2), pp. 241-258.


پاراگلایدر Full Text: PDF

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN : 2251-1555