SMFISC institution share company (SMFISC)
was founded in January31, 2011 registered by the National Bank of Ethiopia
according to proclamation No. 626/2009, December2011 started operations. It has
been 6 years since SMFISC began providing financial services to the poor of the
region. The Institution has been giving the services by opining 24 branches.
SMFISC has made a total amount of disbursement of 1,828,552,415.38 birr to nearly 48,500
clients of which 34,413 are active
clients and over 23,227 of whom are poor women and 11,186 are men. The total amount of outstanding
loan is 1,053,829,599.62 birr (as of June 30, 2019).
With strong support of Ethiopian Somali regional state
the Institution has been showing great effort to expand its outreach with in
this short period, however , shortage of trained man power in microfinance,
shortage of loan able fund, poor infrastructure of the region, along with some
social and cultural barriers, couldn’t allow it to have as much outreach as
possible. As a result of this, there are still many economically productive
poor people of the region waiting for the service to come. Thus over the coming
years, focus should be towards financial intermediation based on more commercial and market
principles, with enhanced focus on
mobilize saving , effort have to be enhanced to diversify the group lending
modality to include individual as well as village banking models, put a lot of
effort on capacity building by organize training for management and staff in
the various fields of micro finance so as to address capacity constraints which
hamper efficient management and leadership. Indeed, Somali micro finance, as
key player in the microfinance sector in the region is expected to play a vital
role in struggle against poverty. With the support of all around, I think this
is achievable.