What are the roles of Traditional and modern savinf institutions in Ethiopia?

Answer 1

In Ethiopia, traditional saving institutions, such as Iqqub and Iddir, play a vital role in community support and financial resource mobilization through informal group savings and mutual aid. These institutions foster social cohesion and provide members with a safety net during emergencies. On the other hand, modern saving institutions, like banks and microfinance organizations, offer formal savings accounts, loans, and financial services that promote economic growth and financial inclusion. Together, they address diverse financial needs, enhance savings culture, and contribute to the overall economic development of the country.