Abstract

The study was conducted to examine the implications of the Common Interest Group (CIG) scheme for rural livelihood change in the selected areas of the Wara-Jarso woreda, Central Ethiopia. The study focuses on the activities of the CIGs, their effectiveness, Strengths, Weaknesses, Opportunities, and Threats, along with the changes in the livelihood status of CIG members. Four CIGs that fits into the aim of the study were purposively selected from the CIGs operating in the woreda. Among a qualitative research approach, a case study was employed. The data were collected from January 1, 2021 to February 28, 2021. Primary data were gathered using Focus Group Discussions and Key Informant Interviews. A thorough desk review of official documents and other secondary sources was made as an auxiliary method to capture sets of relevant information. The data organization was performed by the MAXQDA 2020 qualitative data analysis package program. The data were analyzed using thematic analysis, relational analysis, and content analysis methods. It was found that the CIGs have encouraged strong social capital among members and becomes an important alternative financial source. It was also found that the CIGs operation has encountered problems related to lack of entrepreneurial education and skill training, monitoring and evaluation, workplace, coordination among stakeholders, inadequate and improper financial use, and non-existence of market linkage. Their strengths, weaknesses, and opportunities were also indicated. For successful rural women and youth livelihood change through the CIGs scheme, the study recommends access to entrepreneurial skill training, coordination among relevant stakeholders, strong monitoring and evaluation, access to market linkage and workplace, and adequate funding.

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