Table 412 Financial Status of sampled SACCOs As of 2015 No Name of SACCOs

Table 412 financial status of sampled saccos as of

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Table 4.12: Financial Status of sampled SACCOs (As of 2015) No Name of SACCOs Liability (Birr) Capital (Birr) Asset (Birr) 1 A.A City Admn. Employee 7,274,900 307,814 7,582,715 2 St.Mary’s Univ. Employee 2,193,972.24 19,877.12 2,198,414.31 3 Yemane birhan primary school 173,790 6,210 180,000 4 Siket 364,579.16 16,467.12 381,046.28 5 Netsanet 1,022,466.81 -4,349.78 1,018,117.03 6 Raey 819,034.01 26,167.54 845,201.55 7 Albash 126,126.68 12,359.01 138,485.69 8 Alegnta 4,663,471.12 168,084.37 4,831,555.48 9 Tsina Kirkos 1,013,113.08 17,880.56 1,030,993.64 10 Yetigil Fire 904,202.31 29,965.68 934,167.99 11 Tesfa Alen 1,074,124.27 179,847.05 1,253,971.32 12 Sira lelwit 1,075,580.72 73,312.07 1,148,892.79 13 Timret 120,085.60 6,223.69 126,309.29 Sub total 20,825,446 859,858.43 21,669,870.37 14 Rased SACCO union 6,274,979.50 2,793,480.70 9,068,460.20 Grand Total 27,100,425.54 3,653,339.13 30738,330.57 Source: Audit report and SACCO’s record , 2016
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51 4.5.2 Financial Services The SACCOs provide credit facilities which include Short term, Long term and Emergency. The findings from the interview we have conducted from respondents indicated that most of the SACCO members do take both short and long term loans. The long-term loans were purposely granted for business purpose, condominium fee, higher education fee, marriage, house construction/maintenance, and the short-term loans were granted for the purpose of children’s school fees, household consumption, emergency case, and medical fee. From the findings all sampled SACCOs provided credit facilities to members, a voluntary saving is mandatory and taken as the requirement for loan provision. In most of SACCOs, at least 6 - 12 month regular saving is required to receive a loan. It is one type of collateral in providing loans. A borrower required to pay both loan and savings monthly. 4.5.3 Menu of financial products The study found that SACCOs offer limited range of products to meet the needs of their members and ranked them as savings product at first, loan product at second, shares at third, and other services at fourth respectively. SACCOs as any financial institution have not capacity to provide diversified financial products to become sustainable and competent in the financial market. This is agreed as indicated by the works of Wright et al. (2000) and WOCCU (2001), with respect to product diversification and innovation strategies of SACCOs, though the saving mobilization and culture has been improved, SACCOs have had no product diversification, and innovation strategies and mechanisms yet. As obtained from focus group discussion, the most common and possibly the sole saving product offered by SACCOs is saving deposit/accounts. This situation may not attract and satisfy the interests of the clients. There must be a shift from such single saving product to the use of a mix of saving products. This is because of the SACCOs service product depends on the capacity of members. Members have an access of getting only compulsory saving, shares and loan service. The first types of the saving products offered by all SACCOs under the present survey are limited to compulsory savings and voluntary savings. Some
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52 SACCOs as per table 4.13 started voluntary savings, retirement savings and medical savings. The second line of product, like in other financial institution, all SACCOs provide loans to members. Loan products included short-term, medium-term and long-term with less than and equal to 1 year, 1 to 3 year and above 5 year respectively. According to the
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