Contributions and Constraints of NGO-Led Income Generation Activities (IGAs): The Case of SOS Children's Village Ethiopia, in Woldia City

Abstract

This study examined how SOS Children’s Village Ethiopia’s family-focused “credit-plus” income-generating activity (IGA) model contributes to household wellbeing in Woldia City and identified contextual constraints limiting its sustainability. Using a qualitative approach across three kebeles in North Wollo (Amhara Region), data were collected through 10 in-depth interviews with IGA clients, 6 key-informant interviews with project staff, and focus group discussions with cooperative and individual participants. The findings revealed that the SOS program improved access to revolving funds through savings-and-credit associations, enhanced entrepreneurial and technical skills via training and coaching, and promoted women’s economic empowerment by strengthening decision-making power, confidence, and income control. The study also confirmed positive outcomes such as improved saving culture, asset accumulation, and children’s wellbeing. However, several challenges constrained program impact, including limited motivation among some clients, high opportunity costs causing training dropouts, small loan ceilings restricting business growth, workspace shortages, bureaucratic delays, and weak market access. Conflicts within cooperatives and enforcement risks further undermined progress. The study concludes that credit-plus IGAs yield tangible livelihood and empowerment gains when complemented by secure production spaces, responsive governance, market linkages, and progressive financing. Strengthened cooperative governance and flexible, time-sensitive training are recommended to enhance sustainability.