Causality between micro-finance and poverty in Ethiopia: An empirical investigation
Lack of finance is one of the major bottlenecks for economic development; as access to formal institutional credit is very limited. Thus, the government of Ethiopia brought micro finance institution into formal sector by issuing proclamation No. 40/1996 that empowered the National Bank of Ethiopia to issue licenses to supervise and regulate micro financing business in the country. Omo Micro Finance has been operational and has managed to reach more needy poor people who otherwise have no access to financial resources from banks.