Question 1

What is Rama Microfinance?

Accepted Answer

Rama Microfinance is a microfinance institution operating in Ethiopia, organized as a share company under the country's microfinance regulatory framework. As one of the licensed microfinance institutions in Ethiopia, Rama Microfinance focuses on providing financial services to underserved populations, particularly targeting low-income individuals, small entrepreneurs, and agricultural producers who lack access to traditional banking services.

The institution operates under Proclamation No. 40/1996, which governs the licensing and supervision of microfinance institutions in Ethiopia by the National Bank of Ethiopia.

Question 2

When was Rama Microfinance founded?

Accepted Answer

[Information not publicly available]

The specific founding date of Rama Microfinance Institution S.C. is not publicly documented. However, as a licensed microfinance institution registered with the National Bank of Ethiopia, it operates under the regulatory framework established in 1996 that enabled the growth of Ethiopia's microfinance sector.

Question 3

Where is Rama Microfinance headquartered?

Accepted Answer

Rama Microfinance is headquartered in Addis Ababa, the capital city of Ethiopia. The institution can be contacted at +251-911951484.

As with many microfinance institutions in Ethiopia, having headquarters in Addis Ababa provides access to the central regulatory authority (National Bank of Ethiopia) and the broader financial services ecosystem of the country.

Question 4

Where does Rama Microfinance operate?

Accepted Answer

[Information not publicly available]

Specific details about the geographic coverage and branch network of Rama Microfinance within Ethiopia are not publicly documented. Ethiopian microfinance institutions typically establish operations in both urban and rural areas to reach their target clientele of low-income individuals and small-scale entrepreneurs.

The institution is registered with the National Bank of Ethiopia to provide microfinance services throughout Ethiopia, following the country's microfinance development strategy.

Question 5

What services does Rama Microfinance offer?

Accepted Answer

Rama Microfinance provides microfinance services designed for low-income populations and small-scale economic activities. Based on the standard service offerings of Ethiopian microfinance institutions, these typically include:

Credit Services: Microloans for agricultural production, small business development, working capital, and income-generating activities. Ethiopian MFIs traditionally use group-based lending methodologies with joint liability as an alternative to conventional collateral.

Savings Mobilization: Deposit services including compulsory savings (linked to loan products), voluntary savings accounts, and potentially time deposit products. Ethiopian microfinance regulations explicitly authorize MFIs to mobilize savings, allowing them to function as financial intermediaries.

Additional Financial Services: Some Ethiopian MFIs also facilitate money transfer services and pension payment services, though specific offerings vary by institution.

All services are provided in accordance with National Bank of Ethiopia regulations and directives governing the microfinance sector.

Question 6

What makes Rama Microfinance unique?

Accepted Answer

As a licensed microfinance institution in Ethiopia's regulated financial sector, Rama Microfinance operates within a distinctive national framework. Ethiopia is one of few African countries that prominently features microfinance in its poverty reduction strategy.

The institution is part of a microfinance sector that emphasizes financial inclusion and rural development. Ethiopian MFIs are required to organize as share companies wholly owned by Ethiopian nationals or organizations, ensuring domestic ownership and alignment with national development objectives.

Rama Microfinance operates under supervision by the National Bank of Ethiopia, which helps ensure financial soundness and consumer protection. Many Ethiopian MFIs are also members of the Association of Ethiopian Microfinance Institutions (AEMFI), which provides training, performance monitoring, and technical assistance to strengthen the sector.

Question 7

What type of financial institution is Rama Microfinance?

Accepted Answer

Rama Microfinance is a Microfinance Institution (MFI) operating as a share company in Ethiopia. This classification is specific to Ethiopia's financial sector structure.

Under Ethiopian law, microfinance institutions are formally defined as organizations that extend credit (in cash or in kind) to peasant farmers or urban small entrepreneurs. MFIs are licensed and supervised by the National Bank of Ethiopia under Proclamation No. 40/1996.

Ethiopian MFIs occupy a distinct regulatory space between traditional banks and informal financial services providers. They are authorized to mobilize deposits and provide credit, but operate under specific regulations regarding loan sizes, interest rates, and operational requirements tailored to serving low-income populations.

This institutional category emerged from Ethiopia's 1996 microfinance proclamation, which created an enabling environment for formal microfinance services to address the financial needs of populations underserved by conventional banking institutions.

Rama Microfinance

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About Rama Microfinance in Ethiopia

Rama Microf­inance