The majority of the households in rural areas and urban slums have difficulty accessing formal financial services. Those that are available are often too expensive due to high cost of transaction fees and substantial minimum requirements for savings balances or loan amounts.
Plan International Ethiopia’s household economic empowerment programme is improving the household income of communities by providing saving and credit services. Communities in Babo districts of Jimma Zone are learning the value of saving through small microfinance schemes to help them generate an income of their own.
Through the programme, women and young people will get training on the basic skills of saving, managing loan services, prudent financial management and group constitution. The programme emphasises the importance of group participation, savings and investment to increase financial security and reduce the long-term effects of poverty.