BY HIZKEL HAILU
“The Ethiopian National Defense Force (ENDF) is Ethiopians’ emblem. Therefore, I will never regret to contribute my one month salary for the national army. I and our staffs will also continue our support for the ENDF as far as our potential is concerned,” Ejigu Engiso, Operations Division Head of Omo Micro Finance Share Company said.
Yosef Neta is a young photographer in the city of Konso. Yosef, who said he took pictures through traveling from place to place while he started work to lead his life, he recalls that he borrowed ETB 2,500 from Omo Microfinance Institution for the first time in 2009 to do the job extensively. He added that he borrowed additional 2,500 Birr for the second round and bought computers and additional cameras. Then he kicked off a Photography Studio and started his job permanently.
Aiming to enlarge his business in photo and banner printing, he tried hard to purchase suitable machines for the last decade. However, the repeated power outage has hampered his ability to function widely, he stated.
“I have been expanding my business from time to time and today I have been able to create jobs for more than five unemployed youths. Besides, my current total capital has reached four million Birr. I have highly benefited from the money I have borrowed from OMFI,” he said with heartfelt happiness.
The other client of the institution is Kutata Kutamo. For the first time, she borrowed 3,000 Birr from Omo Microfinance Institution and engaged in traditional beverage business.
Initiated with her success in the business, she thought on the expansion of the business that needs more financial capital. To this end, she borrowed 60,000 Birr and 150,000 Birr for the second and the third rounds respectively and engaged in cattle fattening through using the byproduct of the traditional beverages as inputs for the fodder.
According to Kutata, she has created job opportunity for more than 15 employees and her total assets have reached more than one million Birr.
Official Facebook page of the institution stated that while explaining that this institution has enabled the clients to become economically self-reliant as they lead a decent life with their family, they advised other women and youth to change their lives through joining the micro finance institutions which are found in their surroundings.
Undoubtedly, Microfinance Institutions are mainly established to provide financial service for the underprivileged sects of the society both in rural and urban settings with the aim to help them in developing self-employment opportunities and engaging in various income generating activities.
Omo Micro Finance Share Company is amongst the others that have been established 25 years ago. While approached by The Ethiopian Herald, Ejigu Engiso, Operations Division Head of Omo Micro Finance Share Company stated that the institution at the moment has 19 districts and 232 brunches in Sidama and Southern Nation, Nationality and peoples’ Regions.
According to him, his office is working exhaustively in carrying out its social responsibilities. Noting that the brutal acts of the terrorist TPLF and Shene groups towards innocent individuals and groups as well shall be condemned, he explained that their institution will continue its support to the Ethiopian National Defense Force as much as it is needed.
As a result, all staffs of the share company at every brunches and districts including the head office have dedicated their one month salary to indicate that they are always by the side of the National Defense Force. Accordingly, staff members of the head office and some districts have contributed more than 2.4 million Birr. And the rest staff members of their brunches are discussing on the issue to donate for the defense force, he asserted.
In addition to this, the institution also clearly indicated its social responsibility through engaging in different social issues. As a result, it has contributed more than 1 million Birr for the displaced citizens following the atrocious acts by the terrorist TPLF and Shene groups, he noted. He further explained that the share company has provided COVID-19 prevention instruments which worth more than 700,000 Birr in order to prevent the expansion of the pandemic.
During the last two decades, microfinance institutions have emerged as instruments in Ethiopia to expand financial services to low economic dwellers, rural and urban entrepreneurs via providing access to financial services. Principally, they are responsible to provide small loans to the underprivileged society through considering microfinance institutions as tools for poverty reduction and by large, for overall economic development of the nation.
As to Ejigu, there are about 5.4 million saving and more than 1.2 million credit customers of which 462,000 saving and 106,000 credit customers were registered during the recently ended Ethiopian fiscal year.
The head also added that there are some challenges in modernizing and increasing the service and the system. As to him, infrastructure is the worst challenge in modernizing the system and its process underscoring that they are working with the government to solve this challenge.
To the question raised by The Ethiopian Herald whether the Share Company has achieved its goal or not, the Head replied that different privileged societies are being benefited from this institution. There are different parts of the privileged society who have changed their lives after started saving in this financial institution and acquiring credit, he noted.
Mentioning his institution is playing a tremendous role in realizing rapid economic growth in Ethiopia through providing access to credit and saving service, he elucidated that the institution has mobilized over seven billion Birr in deposits last year, bringing its aggregate to 36 billion Birr. As to him, the institution now has total assets worth 10.7 billion Birr and a paid-up capital of 1.9 billion Birr. And its initial capital was half a million Birr with its four branch offices.
As to him, amongst their 1.2 million customers, more than 700,000 were jobless. “Therefore, we are very delightful in sharing the government’s ambitious plan in reducing joblessness. We are also making strong support and monitoring in order to cross check our clients are engaging themselves in creating jobs,” he pointed out.
Owing to the fact that they are deposit taking micro finance institutions by the privilege they got from the country’s policy, which allows MFIs to mobilize saving from the general population, he mentioned that they deliver credit and financial education for women and youths.
He mentioned that their company is a deposit taking MFI, setup with an objective to eradicate poverty and empower the community, basically operating in the rural areas, because most rural areas are not accessible by financial institutions.
According to the document obtained from the Association of Ethiopian Microfinance Institution (AEMFI), currently there are about 40 microfinance institutions providing financial services to the underprivileged members of the society across the country particularly in rural areas.
As per Proclamation No. 40/96, the Ethiopian microfinance starts serving the rural low economic dwellers with the supervision and monitoring of National Bank of Ethiopia (NBE). The document further indicated that the association is responsible to provide capacity building campaigns, conducting research and preparing workshop about the financing risk management and marketing for the institutions.
Ejigu finally underscored that the people and friends of Ethiopia across the globe should stand by the side of the government on its law enforcement and sovereignty activity particularly in the northern part of Ethiopia. Indicating that the terrorist groups are damaging the national economy, he asserted that every act of the terrorists TPLF and Shene groups should be condemned.
“I am glad to contribute my one month salary for the national army,” Ejigu promised.
The Ethiopian Herald August 28/2021
