Micro Finance in Sudan, a BOOMING Market

Limited access to credit and the absence of affordable credit are the primary reasons small companies don’t get off the ground in Sudan. In 2013, Sudan ranked 167 out of 185 countries by the World Bank’s Doing Business Report (2010) based on the ease of getting credit.

Most of the poor Sudanese in urban settings cannot afford the fees banks charge for loans. Consequently, they borrow from other business owners, or traders, who are willing to be repaid in cash or in kind.  Like commercial banks, micro finance institutions (MFIs) are independent and provide loans to small entrepreneurs. Today, twelve MFIs are registered by the government in Sudan and offer loans at market rates. These loans allow people to fulfil their dreams.

Micro Finance in Sudan | A huge market

The Micro finance Sector in Sudan is not a new one. The government’s Central Bank of Sudan (CBS) championed micro finance as a poverty alleviation tool and has dedicated significant resources for loans and credit to small and medium-sized businesses such as Mohammed’s brick making business. A few years ago the government passed a requirement that all commercial banks set aside 12% of their resources for microfinance loans.  “I have never seen a county so committed to microfinance as Sudan,” says Task Team Leader Andres F. Garcia, Economist and Country Sector Coordinator with the World Bank. “The micro finance sector is growing in Sudan and it seems to be a healthy sector compared to other countries where the sector grows and then begins to drop,” he adds.

In the state of Khartoum, the demand for microfinance is extremely high. According to a recent survey conducted in urban areas, 21% of the total population expressed interest for such loans. Yet, 72 % of the micro entrepreneurs surveyed said they had no access to formal or informal credit services.

In Sudan, small-scale industries account for 93% of the manufacturing industry, and small entrepreneurs provide two-thirds of household needs for the majority of Sudanese households. The formal financial sector only serves a tiny proportion of these entrepreneurs, thus pointing to the existence of a huge untapped market.

Source


#microfinance #Sudaneconomy

687 Views0 Comments

7 thoughts on “Spotlight on a CA Global Recruitment Manager: Shearidan Rabsch

  1. gralion torile says:

    This design is steller! You most certainly know how to keep a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful job. I really loved what you had to say, and more than that, how you presented it. Too cool!

  2. gralion torile says:

    Thank you for sharing excellent informations. Your website is very cool. I am impressed by the details that you?¦ve on this site. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found just the info I already searched everywhere and just couldn’t come across. What a perfect web-site.

  3. Scarlett says:

    Normally I don’t read article on blogs, but I would like to
    say that this write-up very pressured me to take a look at and do so!
    Your writing taste has been surprised me. Thanks, quite nice article.

  4. graliontorile says:

    I have been absent for some time, but now I remember why I used to love this site. Thank you, I will try and check back more frequently. How frequently you update your website?

  5. gralion torile says:

    Good site! I really love how it is simple on my eyes and the data are well written. I’m wondering how I could be notified when a new post has been made. I’ve subscribed to your RSS which must do the trick! Have a great day!

Leave a Reply

Your email address will not be published. Required fields are marked *