The Role of Microcredit Institutions in Urban Poverty Alleviation in Ethiopia

This paper evaluates the role of microcredit programs in poverty alleviation in Addis Ababa City by taking two microcredit institutions: Addis Credit and Saving Institution and Africa Village Financial Service. Secondary data from different sources as well as primary data from the clients of both institutions were collected and analysed. Moser’s Asset Vulnerability Framework is also employed as an analytical tool. It is found that AdCSI and AVFS failed to alleviate poverty in Addis Ababa, for very different reasons: AdCSI has effectively excluded the poor, and AVFS has failed to improve the situation of the poor. The result also implies that both AdCSI and AVFS have benefited men more than women.