The Determinants of Financial and Operational Sustainability OF Microfinance Institutions: Case Study of Clecam-Ejoheza Ltd.

Abstract

This research is about analysing the determinants of financial and operations sustainability of Microfinance institutions in Rwanda, particularly the case study of CLECAM-EJOHEZA ltd. The study evaluates the financial and operational sustainability of CLECAM-EJOHEZA Ltd through a financial analysis by ratios conducted on the financial statements of CLECAM-EJOHEZA Ltd for the period from 2010 to 2015. For instance, to accomplish the measurement of financial and operational sustainability of a company cited above, financial selfsufficiency ratio (FSS) and operational self-sufficiency ratio (OSS) were used as the dependent variables because the Microfinance Financial Reporting Standards recommends the use of financial self-sufficiency (FSS) and operational self-sufficiency (OSS) as measures of sustainability of the MFI.