College of Business and Economics

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ASSESMENT OF ADVERTISING EFFECTIVNESS: THE CASE OF AQUA SAFE MINERAL WATER
(Mekelle University, 2025-02) Bedilu Melaku
The objective of the study is to determine the effectiveness of advertising MESSAGE SOURCE AND Channel of aqua safe mineral water. The research design was a cross sectional design. The population of the study was residents of Addis Ababa from both Kirkos and Bole sub cities. The study used primary data which was collected using self-administered questionnaires. Advertising influences the sales performance as it enables the company to enhance the purchase of organizational products by the consumer, increase volume of sales, increase the profits of the organization and enhance the organization relationship with its customers. The study was conducted to identify effectiveness of advertising message, source and channel of Aqua safe mineral water. The study was conducted in both bole and Kirkos sub cities of Addis Ababa. The researcher used non-probability sampling method to take samples. Among non-probability sampling method, the researcher chooses convenience sampling method because it helps the researcher to easily select respondents and to achieve the diverse nature of respondents. Regarding the finding on the media mixes that aqua safe mineral water used to advertise its product, the company uses almost all types of Medias such as visual, audio and print Medias. According to the statistics of the study advertising messages of aqua safe mineral water is very effective. The management of aqua safe mineral water should carry out periodic review of the advertising message, advertising source and channel to rate their effectiveness. Moreover, advertising messages must be stronger and appealing enough to persuade and build product preference, encourage switching to aqua safe mineral water by changing the perception of the consumers of rival brands. According to the statistics of the study advertising messages of aqua safe mineral water is very effective. The management of aqua safe mineral water should carry out periodic review of the advertising message, advertising source and channel to rate their effectiveness. Moreover, advertising messages must be stronger andviii appealing enough to persuade and build product preference, encourage switching to aqua safe mineral water by changing the perception of the consumers of rival brands. According to the research findings we can conclude that Aqua safe mineral water advertising messages is effective, advertising source and channel are also effective.
Assess the effect of Conflict on Performance of Rural Saving and Credit Cooperative and Mitigating Mechanisms in Southern Tigray: The Case of Endamohoni Wereda.
(Mekelle University, 2025-03) YohannesRedae
he survey conducted after the devastating war in Tigray provides valuable insights in to assess the effects on the Endamohoni Wereda Main objective of this study is to assess the effect of conflict on rural saving and credit cooperative in southern Tigray: in the case of Endamohoni Wereda. The effectiveness of RUSSCO is necessarily subject to assess the negative effects of the conflicts or war, especially as their loans outstanding depended on the level of savings outstanding. Endamohoni Wereda Youth Saving and Credit Cooperative for its saving, loan provided, credit collections in 2020 and this effect leads for above 2million birr pillages in all branches During the conflict, deposits shrink and increases in withdrawals, substantial decrease in loan repayment lost their businesses, or even died. The Research design is mixed methods both qualitative and quantitative approach has been employed in this study. This researcher used a descriptive research design, and systematic random sampling techniques, department heads were selected purposefully . Data were collected by interviewing up on 378 respondents in rural saving and credit cooperatives Endamohoni Wereda , South Tigray in Ethiopia. To analysis and interpret data the researcher used descriptive statistics such as the percentage, range, table, graphs, ratio and narrations and the other methods to collect qualitative data by interview systematic random sampling and purposive sampling .The post war conflict brought about complex effects and wide range of damages such as pillage, assets set on fire , shutter or demolished assets. The members are facing multiple problems, challenges and economic limitations. Major challenges of rural saving and credit cooperative union is lake of awareness, limitation of managerial capacity, limited income of the members, Sacco size, dependency or government interference, inadequate support and weak regulation and supervision ,inaccessibility to technology, political instability or war. From this it is possible to conclude that the post war conflict significantly disrupted the income capacity of most respondents, with only a small percentage managing to generate income at or near their expected levels. Similarly, the majority of members either ceased saving or reduced their saving amounts during the war and siege period. Solutions for the challenges of rural saving and credit cooperative, the researcher recommended the following suggestions. Increase educated staff members, use of technology, creating awareness rising, enhancing of the members, and their income per participant, being mautonomous, and cooperative among cooperative unions
Assessing the Challenges facing External Auditors Auditing Public Enterprises in Ethiopia; the case of Auditors of Audit Service Corporation
(Mekelle University, 2024-11) Feven Antonious
This research explores the major challenges faced by external auditors in auditing public enterprises, specifically focusing on the Auditors of Audit Service Corporation (ASC). Utilizing a descriptive survey research design, the study employs a quantitative methods approach. The quantitative aspect involves the use of structured questionnaires distributed to 95 ASC audit directorate staff whereas 93 questionnaires were returned. Data analysis is conducted using SPSS version 20, presenting results through frequency tables and summary statistics. Key findings reveal significant challenges such as lack of cooperation from management, difficulties in obtaining necessary documentation, complexity of regulations, issues with internal controls, and political influences affecting audit objectivity. Additionally, resource constraints, challenges in assessing risk management practices, and resistance from public enterprises are highlighted. The role of external audit committees, training adequacy, and the impact of technology on mitigating audit challenges are also examined. Results show significant challenges, including resistance from management, difficulties in obtaining documentation, complex regulatory environments, issues with internal controls, and political influences on audit objectivity. The study underscores the need for improved methodologies, regulatory framework changes, and enhanced training programs to better equip auditors in addressing these challenges effectively. Overall, the research provides a comprehensive understanding of the obstacles faced by external auditors in auditing public enterprises and offers recommendations for enhancing the audit process.
Assessment of Challenges and Opportunities of Private Investment in Garment &Textile Firms :( A Case study inMekelle City)
(Mekelle University, 2024-09) ZenebuFitsum
Many Private investments in manufacturing have played their roles to employment creation and poverty alleviation of wider group of the society in general and urban youth in particular.However these sectors have been bound with various complicated and interlocked constraintsThe purpose of this study is thereforeto investigate the opportunities and challenges of private investment in Mekelle citywith particular emphasis to the garment & textile sector. Clear understanding of these will enable to harness the potential benefit and to face the challenges that hindered their growth. The study has used both primary and secondary data source.The target populations of the study were investors & owners involved in the private investment of the garment and textile sector and government officials in the study area. By stratifying the investment stage, samples were selected by employing proportional stratified sampling technique and 188 questionnaires were distributed; out of which 166 were returned. An interview is also conducted with 20 respondents: 10 selected from operators/owners and 10 from investment officials. Data gathered were analyzed based on these 166 responses using SPSS 20 software package. Descriptive research design was employed and Outputs were reported using frequency, percentage and mean results. The findings indicated that even though the investment environment in such sector is improving, still there are problems in the area of financial access, inadequate infrastructure, production inefficiency, influx of smuggled goods, and forex shortages that hinder their growth.These sectors have bright prospects if action is taken by the government. To benefit from opportunities and overcome its challenges, government should control smuggled goods and supportand facilitate these sectors to modernize and further increase their production capacity and enhance human resource capacity through training and working capital.Hence, to promote the performance these sectors, it is essential to take measures that can improve real income of people, and make public investment in basic infrastructures and institutions that are crucial to attract private investment. Besides, ensuring stable investment environment and macro-economic and political stability are necessary to build lasting confidence of privateinvestors.
Assessment of Tax Audit practice and its Challenges: case study Ministry of Revenue, Mekelle Branch
(Mekelle University, 2024-11) Gibtsawit Bokure
This study tried to assess the practices and the challenges of tax audits with a selected Ministry of Revenue, Ministry of Revenue Mekelle Branch Office. For this end, intending to get the relevant data, this study considered only the audit department staff office and Mekelle city audited taxpayers as the population of the study. As the sources of data, the current study used both primary and secondary sources. To collect primary data, survey questionnaires were used as the methods of data collection. The questionnaires were distributed to 28 tax audit staff respondents, and out of those, 24 were returned. They were also distributed to 105 taxpayers’ respondents; out of those 87 that were returned, the secondary data was from scholarly published studies, internet sources, journals, MOR published, and unpublished documents. The questionnaires were rated at a 5-point scale rate. To analyse the collected data, statistical analysis using SPSS 20 was applied. From the data analysis, it is revealed that comprehensive tax audit was a repetitively performed tax audit type. There is a wellestablished role of tax audit. The tax audit practice of the office has weaknesses in applying IT (information technology). The department applies statistical techniques and an automatic risk scoring system for its audit selection case. The primary purpose of the tax audit in the office is not ensuring tax compliance behaviour but increasing tax revenue collection. There is a problem in the supply of audit resources such as skilled and experienced tax auditors and an organized and suitable office structure. In addition, an inadequate number of auditors, a lack of skilled and qualified auditors, and the unwillingness of taxpayers to present necessary records were some challenges of tax auditing in the office. Based on these findings, it was recommended that the office should have skilled and qualified tax auditors through training, focus on ensuring tax compliance behaviour, and apply different tax audit types. Lastly, it is suggested that the office need to have continuous assessment of the auditor's efficiency and level of tax compliance behaviour enhanced every time.
Assessment of Vulnerability of Women to Gender Based Violence (GBV) in Mekelle City, Tigray
(Mekelle University, 2025-02) Merhawit Mesgina
Motivation to conduct this research is my professional experience as witnessing difficult cases and personal interest to contribute my part on GBV. This study assesses the vulnerability of women to gender-based violence (GBV) in Mekelle City, Tigray, during and after the Tigray war. Using a cross-sectional design, data were collected from 391 women aged 15–49 through structured interviews and surveys, supplemented by key informant interviews with professionals from healthcare and humanitarian sectors. Data analysis was conducted using SPSS version 26. The findings reveal a 100% prevalence of GBV, with emotional abuse (100%), sexual violence (91%), and economic abuse (89.3%) being the most commonly reported forms. Perpetrators included soldiers (67.5%), friends (77.7%), and family members (43.2%), with violence predominantly occurring at home (67.8%) and during transportation (38.1%). War (100%), power imbalances (77.7%), and harmful societal norms (70.1%) were the primary contributing factors. The consequences of GBV were severe, with all respondents reporting psychological distress, including PTSD (100%), depression (100%), and stigma (88.5%), alongside physical injuries (100%) and reproductive health complications. Despite the availability of healthcare services (89.3%) and victim assistance programs (91%), barriers such as social stigma and lack of awareness persist. The study underscores the urgent need for trauma-informed interventions, community education, legal reforms, and strengthened support systems to protect survivors and prevent GBV in post-conflict settings.
Assessment on the Practices and Challenges of Humanitarian Supply Chain Management in the case of International Rescue Committee Ethiopia (IRC)
(Mekelle University, 2020-07-25) Rigat Gebretinsae
The effectiveness of humanitarian supply chains is critical for ensuring the timely and equitable delivery of aid to populations affected by crises. This study examines the practices and challenges of supply chain management within the International Rescue Committee (IRC) Ethiopia, focusing on procurement planning, inventory utilization, warehousing, and distribution. Primary and secondary data were collected through structured interviews, observations, and reviews of organizational reports and standard operating procedures, with analysis conducted using SPSS. Key findings reveal significant issues in procurement planning, including inaccuracies in specifications, pricing, and delivery timelines, which lead to unutilized inventory and reduced supply chain efficiency. Although the IRC demonstrates strong practices in warehousing and distribution, these are often dependent on timely inputs from program teams. Additionally, while inventory utilization is generally effective, leftover stock at the end of projects highlights areas for improvement. The study recommends enhancing procurement planning processes, implementing accountability tools, optimizing inventory utilization, strengthening coordination between warehousing and program teams, increasing senior management oversight, and investing in technology to improve forecasting and inventory management. By addressing these challenges, the IRC can further enhance its supply chain efficiency, ensuring resources are used effectively to support its humanitarian mission. This research contributes to the field by offering evidence-based recommendations for improving the resilience and performance of humanitarian supply chains, particularly in resource-constrained environments like Ethiopia.
Challenges and Opportunities of Honey Market in Tigray: In the Case of Kilte Awlaelo Woreda
(Mekelle University, 2024-01-25) Yukum G/Michael Desta
The honey market in Kilte Awlaelo Woreda, Tigray, presents both significant challenges and promising opportunities for local beekeepers. This study assesses the current status of the market, identifies key barriers to its development, and explores potential avenues for growth. Employing a mixed-methods approach—including surveys, interviews, focus group discussions, and field observations—the research highlights major constraints such as a shortage of skilled labor, poor post-harvest management, inadequate extension services, and market-related issues like price instability and limited access to profitable markets. These factors hinder the productivity and economic viability of the honey sector in the region. Despite these obstacles, the study identifies substantial opportunities for market expansion. Growing demand for honey, the region’s rich biodiversity, and potential for international trade create a strong foundation for industry growth. If properly harnessed, these opportunities can transform the honey market into a more efficient and profitable sector. To address the existing challenges and maximize market potential, the study recommends targeted interventions, including capacity-building initiatives, improved infrastructure, enhanced market linkages, and stronger collaboration between stakeholders. Additionally, it emphasizes the need for further research to develop sustainable strategies that will support the long-term growth of the honey industry in Kilte Awlaelo Woreda and contribute to the broader economic development of Tigray
Credit Sales Risk Management in the Case of Libya Oil Ethiopia Limited
(Mekelle University, 2024-11-28) Eyerusalem Zewge
This research deals with the Credit Sales Risk Management of Libya Oil Ethiopia Limited. The objectives of the research were to assess the management of credit sales risks in Libya Oil Ethiopia Limited. One crucial element that must be controlled is credit sales risk. Credit sales risk management is based on analyzing the creditworthiness of customers and is one of the most central risks for any company. It is caused by a debtor's failure to perform their responsibilities. The research was carried out on Libya Oil Ethiopia Ltd. One of the key elements assessing credit sales risk management is the potential for a customer to default on their payments. By evaluating the current practice, this research aims to propose potential solutions that could address this issue in credit sales risk management. A descriptive type of research method was used in conducting this study. The result of this study evidence that there is a big gap between the current company’s collection policies and procedure and current states of market computation therefore, Libya Oil Ethiopia Ltd has to revise the current policies and procedures in considering the current inflation, compotator and customer status. Trade debt has an impact on the company's performance by lowering its revenue and net income, the case thus supports the idea that the company needs strong credit sales risk management. The study’s findings indicate that setting clear credit sales, collection and receivable management is essential to effectively manage credit sales and improve the company’s performance.
CURRENT STATUS, CHALLENGES AND OPPORTUNITIES OF INTEREST FREE BANKING IN ETHIOPIA
(Mekelle University, 2024-12) TEKLEMARIAM ESTIFANOS
Interest Free Banking (IFB) services offer ethical, Shariah-compliant financial solutions and are gaining popularity in Ethiopia among Muslim and non-Muslim clients. This study examines the socio-demographic profile of IFB clients, perceptions of services among stakeholders, managerial insights, and the operational status of IFB. A mixed-method approach was adopted, utilizing structured questionnaires for quantitative data and interviews with IFB division managers for qualitative insights. Descriptive statistics summarized key findings, while thematic analysis interpreted qualitative responses. The study reveals increasing acceptance of IFB services, driven by their ethical principles, but identifies challenges such as limited public awareness, misconceptions, and economic uncertainties. Clients and employees view IFB as a viable alternative to conventional banking, and managers highlight the need for Shariah compliance, fund segregation, and employee training. Key opportunities includeIX product diversification and digital banking solutions to meet evolving client demands. To unlock IFB’s full potential, the study recommends raising public awareness, fostering community engagement, and investing in innovative financial products and digital services. Strengthening Shariah governance and enhancing operational efficiency are essential to promoting ethical financial inclusion in Ethiopia.
DETEMINANTS OF SELECTED COMMERCIAL BANKS LENDING DECISION IN ETHIOPIA
(Mekelle University, 2024-12) TSEGABRHAN TAJEBE SHESHAY
The main objective of this study was to investigate the determinants of lending decision of commercial banks in Ethiopia. In order to achieve the research objectives, the study used secondary data of 14 state owned and private commercial banks of Ethiopia from 2014 to 2023. The study also used quantitative research approach, descriptive and explanatory type of research design by adopting purposive sampling technique. Bank specific; industry specific and macroeconomic variables were analyzed by using the balanced panel random effect regression model. Eleven variables that affect banks’ lending decision were selected and analyzed. The results showed that bank size, real GDP growth rate, volume of deposit, Return On Asset, Bank concentration were positive and statistically significant while liquidity ratio, exchange rate of birr to dollar, lending interest rate, cash reserve requirement ratio and inflation rate were found to be statistically significant with negative effects respectively on total loans and advanced by commercial banks in Ethiopia. However, credit risk ratio was statistically insignificant with negative effects on commercial banks’ lending decision. Therefore, commercial banks should adjust their lending decision in response to the signals from these factors, such that positive signals like bank size , real GDP growth rate, volume of deposit, Return on Asset and Bank concentration in this study make banks become more favorably disposed to lending.
DETERMINANT OF LENDING RATE FOR COMMERCIAL BANKS IN ETHIOPIA: CASE OF SELECTED PRIVATE COMMERCIAL BANKS
(Mekelle University, 2024-09) SELAMAWIT GEBREEGZIABHER HAGOS
This study examines the determinants of lending rate in Ethiopian private commercial banking sector. The study used panel data collected from annual reports of nine private commercial banks operating in Ethiopia during the period 2013 - 2022. Accordingly, the lending rate of commercial banks is determined by bank, industry and macro-economic related factors. A quantitative research approach and explanatory design were adopted in carrying out this research. Secondary data were collected from annual audited reports of selected private commercial banks using purposive sampling technique. The study employed descriptive and econometric estimation techniques to analyze the influence of bank, industry and macroeconomic factors on lending rate. The analysis conducted using the econometric package STATA V.13. The study revealed that credit risk and market share have a positive and significant impact on bank lending rate; whereas, operating cost, reserve requirements and liquidity risk have a negative and significant effect on lending rate. However, bank size and inflation are not significant determinant of lending rate. The study recommends commercial banks to improve operational efficiency and effectiveness.
Determinant of Urban Households’ Food Insecurity: The Case of Mekelle City
(Mekelle University, 2025-02-23) Getnet Ashagrie
This study seeks to analyze food insecurity issues by assessing socio-economic factors that impact the food insecurity of households in urban areas of Mekelle City. The analysis was based on survey data gathered from 397 urban households selected using a simple random sampling procedure. Primary and secondary data were used. The data regarding household determinants were analyzed using descriptive statistics and a binary logit model. The survey result showed that about 27.71% and 72.29% of sample respondents were food insecure and secure, respectively. The empirical results estimated using the survey data to identify the determinants of food insecurity among urban households in the study area revealed mixed impressions. Among the variables considered, age of the household head, income of the household, house ownership, and household food expenditure had a statistically significant effect on food insecurity in the study area. This study adds to the literature by contextualizing urban food insecurity within Sen's Entitlement Framework and the Sustainable Livelihoods Framework in post-conflict areas. Most importantly, the study has delivered findings that call for targeted interventions on income diversification, affordable housing, and gender-responsive policies. This is followed by practical recommendations for policymakers, underscoring the need for context-specific approaches to urban food insecurity in conflict-affected areas.
Determinants of Customer based Brand Equity The Case of Wegagen Bank in Mekelle city
(Mekelle University, 2025-03-03) Mearg Berhe Gebremichael
The study was aimed to measure customer-based brand equity of selected Wegagen bank branches in Mekelle with respect to bank service buyers’ perception by utilizing Aaker’s customer-based brand equity model. A five dimension of brand equity model posited by David Aaker was used in order to conduct the investigation via quantitative research design, where descriptive and explanatory research approach was applied. A sample of 398 bank customers from Mekelle were selected using a Purposive sampling method and data was collected through a structured questionnaire intending to identify their perception towards the bank brand. Out of 398 structured questionnaires distributed to respondents 380 were collected, which maintained 95.47% response rate. The results of correlation analysis showed that the three (brand loyalty, brand association and perceived quality) determinants of Customer-Based Brand Equity had a positive significant relationship with the overall brand equity as well as within themselves. How ever, brand awareness and Other proprietary assets had negative relationship with overall brand equity. The results of multiple regression analysis also revealed that the three dimensions (brand loyalty, brand association and perceived quality) have a positive influence on the overall brand equity though their contribution magnitude is not the same however brand awareness contribute or predict the overall brand equity positively but not significant. Other proprietary assets also predict the overall brand equity negatively but with significant effect. Among those dimensions, perceived quality had the strongest positive significant influence on the studied bank customer-based brand equity followed by brand loyalty. Thus, Bank managers should exert their efforts to increase Perceived Quality first along brand loyalty with of their customers so that the Overall brand equity would accordingly increase.
DETERMINANTS OF EFFECTIVNESS OF RISK MANAGEMENT in PRIVATE COMMERCIAL BANKS IN ETHIOPIA.
(Mekelle University, 2024-09) KIROS WELDU
Banks and other financial institutions usually play a significant intermediary role between borrowers and lenders for the progress of a stable and healthy economy of a nation. In Ethiopian banking industry Commercial banks are the most dominant banks categorized as public and private banks. This study was designed to examine the relationship between risk management effectiveness and its determinants in private commercial banks. Capital adequacy was used as a proxy for risk management effectiveness in commercial banks. Ten explanatory variables namely bank specific factors (credit risk, liquidity risk, profitability, bank size, operating effectiveness, market risk) and Macroeconomic factors (GDP growth, inflation, lending interest rate and exchange rate) were used as independent variables. From the total population of 16 private commercial banks purposive sampling technique was used to select eight private commercial banks in Ethiopia. Secondary data were used to estimate the relationship between independent variables and capital adequacy ratio of banks. Balanced panel data set of ten fiscal years was collected from the audited financial statements of selected private banks in Ethiopia for the period of 2012 – 2022. Both descriptive statistics and econometric model was employed where descriptive statistics were used to describe the variables. In a panel regression analysis random effect model was used to determine the effect of bank specific and macroeconomic variables on risk management effectiveness of banks. The regression result shows that credit risk has negative impact where Bank size and profitability has a positive effect on risk management effectiveness in private commercial banks. The macroeconomic factors have positive effect on risk management effectiveness of private banks where exchange rate has a significant effect. The study concludes that risk management effectiveness of banks is highly determined by bank specific and macroeconomic factors and private commercial banks are recommended to introduce risk based control systems in overall banking system operations and Businesses.
Determinants of Financial performance of Microfinance institutions (MFIs) in Ethiopia
(Mekelle University, 2024-11) Kibrom Welday
The main objective of this study was to investigate and analyze the Determinants of financial performance in the case of selected micro finance institutions (MFIs) in Ethiopia, with specific emphasis on how Capital to Asset ratio, Firms growth rate, Portfolio at Risk, Operating Efficiency ratio, Age of MFI, real gross domestic product growth, Size of MFI, and Government support affect financial self-sufficiency of the MFIs in Ethiopia. Quantitative research approach was used, and the study included a selected sample of 22 MFIs in Ethiopia covering a time period of nine years from 2015 to 2023 (198 observations). The study employed secondary data collection method and the data were obtained from the financial annual reports of MFIs that were available in the national bank of Ethiopia. Fixed effect was used for the Panel data regression analysis of variables. To test the accuracy of the model, the researcher has employed important classical regression assumption tests. The fixed effect regression model’s result coefficient of determination (R-squared) was 0.706, implying that 70.6% of variation in financial performance is explained by the independent variables used in the study. The result of the study indicated that MFIs’ financial performance is significantly influenced by Capital adequacy ratio; MFIs’ size, MFIs’ growth and Age of MFIs. Whereas, portfolio at risk, operating efficiency, gross domestic product, and government support have no significant effect on financial performance of the selected MFIs in Ethiopia.
DETERMINANTS OF LIVELIHOOD DIVERSIFICATION AND ITS IMPLICATION ON VULNERABILITY OF PASTORAL AND AGROPASTORAL COMMUNITY IN AFAMBO WOREDA OF AFAR REGION, NORTHEASTERN ETHIOPIA
(Mekelle University, 2024-10-20) ABNET SISAY TESHOME
Livelihood diversification has been recognized as a tool to cope with economic shocks and reduce vulnerability. This paper focused, identifying the current livelihoods strategy, determinant factors of livelihood diversification, major constraints of livelihood diversification, and the effects of livelihood diversification to reduce vulnerability of pastoral and agro-pastoral household in Afambo Woreda of Afar region. The study was followed the multi-stage sampling procedure with a sample household of 351 of these 139 from pastoral and 212 from agropastoral households. Quantitative and qualitative data types was collected using structured survey questionnaires. Both descriptive statistics and inferential statistics were used for interpretation of the result. The Simpson index of diversity was computed to investigate the degree of livelihood diversification. The findings of the result showed that both pastoral and agro-pastoral households have medium level of livelihood diversification portfolio with a mean value of 0.579 diversity index which covers 55.56 percent. The range of medium level of livelihood diversity were 4 to 6 livelihood options. The maximum level of diversity index was only cover 19.37 per cent of the households which classified a high level of diversified income sources. The major determinate factors of livelihood diversification were households’ level of income, access to training, provision of livelihood support, family size, years of experience in age and exposure to shocks contributed positively significant at 5% level. While, consumption expenditure, distance to market, land size and dependency ratio were negatively significant at 5% level. The majority of households’ livelihood vulnerability ranges highly vulnerable and moderately vulnerable for both pastoral and agro-pastoralist. Major indicators of vulnerability to shocks and stress include a decline of the pasture lands, death of livestock, reduction of water availability, losses of crop production, food insecurity months and outbreaks of human and livestock diseases. To curve the livelihood diversification challenges, the woreda pastoral development office, local lined sector institutions and Non-governmental development actors should support the pastoral and agro-pastoralists with provision training, provision of livelihood support which would enhance livelihood choices in addition to primary livestock production.
DETERMINANTS OF LOAN DEFAULT IN LEASE FINANCING A CASE OF DEVELOPMENT BANK OF ETHIOPIA
(Mekelle University, 2024-09) BELAY TAFESSE
This study identifies determinants of lease loan default, including Lessor related, Lessee related and external factors, on lease loan default. The aim of this research was to examine determinants of lease loan default; there is a causal relationship between each factor and lease loan default. The study utilizes primary data collected through a close-ended questionnaire. The study presents the results obtained from 75 survey questionnaires completed by customers of selected districts of DBE. To present and describe the respondents' demographic characteristics, descriptive data analysis using tables was employed. For examining determinants of lease loan independent variable (Lessor related, Lessee related and external factors) on the dependent variable (lease loan default), an explanatory research design is adopted, employing regression analysis. The collected data is analyzed using descriptive statistics, correlation analysis, and regression analysis through SPSS software. The correlation analysis reveals a Moderate association between Lessor related factors, Lessee related factors weakly related with External factors and lease loan default (r=0.534, 0.0.617, and 0.0895 respectively, p<0.01). The regression result found that independent variables such as lack of credit monitoring, appraisal, KYC and longer lease processing time, lack of educational literacy, managerial experience and inappropriate business location, political instability, foreign currency fluctuation and inflation, significantly and positively influence lease loan default. Therefore, these factors primarily determine the lease loan default in Development Bank of Ethiopia. Therefore, the Development Bank of Ethiopia should prioritize improving its operations to mitigate the risk of defaults and consider location-based risk assessments when extending leases to lessees, particularly in regions with less favorable economic conditions. It is also crucial for DBE to factor external influences when assessing credit risk and designing lease agreements, and government and policy makers should have to maintain external factors in order to have sound finance through lease.
DETERMINANTS OF LOAN REPAYMENT PREFORMANCE OF RURAL SAVING AND CREDIT COOPERATIVE MEMBER BORROWERS IN CASE OF TSAEDA EMBA WOREDA, TIGRAY, ETHIOPIA
(Mekelle University, 2024-01-25) GEBREHAWERIA ALEMU ARAIA
Rural Savings and Credit Co-operatives (RuSACCOs) are cooperatives of financial institution that are owned and controlled by members for the purpose of encouraging members for saving and using the pooled fund to give loan to its members for their short and immediate financial need and as startup capital for small business. There are many demographic, socio-economic and institutional factors influencing loan repayment in the RuSACCOs, and other community based financial institutions. The study was aimed to identify the determinant factors for loan repayment performance of Rural Savings and Credit Co-operatives (RuSACCOs). This study was conducted with the objective of analyzing and identifying the determinant factors for loan repayment performance of rural savings and credit co-operatives (RuSACCOs). To achieve this objective, primarily data were collected from 424 randomly selected member borrowers (334 defaulters and 90 non-defaulters) by using semi-structured interview. For the data analysis, descriptive statistics including frequency, percentages and graph were used to describe the socio-economic characteristics of the member borrowers, institutional factors. Moreover, multicollinearity, correlation and chi-square analyses were employed to fulfil the assumption of binary logistic regression and compare the defaulters and non-defaulters’ group. Binary logistic regression was also, used to identify the determinant factors of loan repayment performance. The analysis found that six explanatory variables; marital status, family size, education, provision of training, follow up/supervision and model of lending become significant variables at 5% significance level. One of the assumptions of binary logistic regression was run to identify which of the independent variables significantly determine loan repayment performance. The omnibus Tests of model coefficients gives an overall indication of how well the model performs; the result obtained when none of the predictors are entered into the model. This is referred to as a „goodness of fit‟ test and indicated a highly significant value.
DETERMINANTS OF MARKET PARTICIPATION OF SMALL SCALE DAIRY FARMERS: THE CASE OF MEKELLE CITY
(Mekelle University, 2025-03-01) RAHEL GEBREYESUS HAILU
This study aimed to investigate the factors influencing market participation among small-scale dairy farmers in Mekelle city, focusing on demographic features, farm characteristics, access to services and infrastructure, credit availability, training programs, and access to information. A quantitative research design was employed, using a survey to collect data from 214 dairy farmers in urban area. The study utilized descriptive statistics and binary logistic regression analysis to identify key factors affecting market participation. The results revealed that farm ownership, access to essential services, credit access and availability of market had a significant positive impact on farmers' participation in dairy markets. Unexpectedly, participation in training programs was found to be negatively affecting market engagement. The study concluded that improving land ownership issues, access services and to credit, and timely market information would enhance market participation among dairy farmers. Policy recommendations included developing tailored financial service for smallholder farmers and improving access to market information. Future research could further explore the role of training on market participation of dairy farming.