Assessment of MICROFINANCE IN SUDAN

Abstract

Microfinance has become one of the important tools of eradication of poverty in the World. This piece of research provided an overview of microfinance industry in Sudan. The study aimed at assessing the current status of micro finance in Sudan by considering both demand and supply sides. Performance indicators and descriptive statistics were used as tools to analyze. Primary data were obtained by a survey of clients for those whom practiced agricultural activity with the exclusion of other productivities activities. Many people connected with microfinance were contacted and visited to have a clear picture of the current situation of microfinance in the Sudan. Microfinance clients were investigated for their socioeconomic characteristics that cleared up the reasons for their contacting the banks. The pilot program of the Central Bank of Sudan together with the participating banks were investigated as a supply side through surveying the total fund, allocated funds, number of clients, execution and default rate. The study concluded that banks operating in the field of microfinance sector realized different degrees of success in the fields of targeting and reaching microfinance clients. Based on the study analysis of the microfinance sector in Sudan, the study provided a number of recommendations to improve microfinance sector in the Sudan: Banks should apply the best microfinance practices by adopting new technologies and programs to follow up the loan lending, to manage microfinance operations and to avoid high defaults rates. Banks should increase the amount of loans to the agricultural sector because it is the most dynamic developing sector, improve the Microfinance Network to be connected to all head offices and branches of other banks in Khartoum State and bank branches in other states, Microfinance operations need to be modernized such as adopting new training methods for clients before giving them finance, operations should be made easy and short, also demands for collateral should be made more suitable for the clients.