Description

This thesis analyzes the demand and supply side of inclusive finance in Ethiopia. At first, the study deals with the demand side of inclusive finance, people's needs, and capabilities to financial services. This section analyzes the access to and usage of financial services by individuals and firms. It conducted the demand side survey on inclusive finance between June 2015 and February 2016 that targeted adults of age older than 15 years. The results show that 33.86 percent of adults older than the age of 15 years have an account at a formal financial institution with penetration varying with individual characteristics such as income, gender, age, geography, and other individual characteristics. In addition 22.37 percent of adults of age older than 15 reports having saved at a bank or microfinance institution in the past 12 months, and 8.10 percent report having borrowed from a bank or microfinance institution in the past year. The study found that the expansion of financial institutions increases household savings as well as credit. The finding show that an increase in financial institution account increases saving and credit as well as credit transfers of households