Abstract:
Microfinance for small farmers, particularly women, is a central issue for
alleviating poverty and improving the living standard. This study aimed
to assess the microfinance and women farmers in Gadarif State more
specifically are to study the socio-economic characteristics of women-
farmers, analyze the current situation of microfinance and assess
microfinance repayment efficiency.
The study depended mainly on
primary data which was collected by means of purposive sampling
technique from 42 respondents through questionnaire. Data was collected
in February 2012. Descriptive statistics, trend line and repayment
efficiency indicators were used to reach the stated objectives.
Results revealed that, majority of the women-farmers were in the active
age group, had low education level, married with relatively large family,
practice agriculture as the main job and are not commercially oriented.
The total income for a women-farmer was relatively small (less than 7
thousand SDG/year) with in-farm representing main source. Sorghum and
sesame were the main cultivated crops. Labor-work was the main source
of off-farm income followed by rural women activities, such as
fabrication. Majority of women-farmers financed by Agricultural Bank
of Sudan (ABS), preferred Salam formula, received a very minute amount
of microfinance funds (less than 900 SDG), and cooperative associations
were the main collateral. While the main problems and constraints facing
women farmers were inadequate fund, lack of machinery, rainfall,
marketing and prices fluctuation for agricultural activities, they were late
loan, complex procedures, and inadequate fund for microfinance. The
majority of women believed that microfinance has improved their saving,
living standard thus look for it in the future. Most of women-famers repay
their loans in time, with small percentage did not. The main reasons
iv
behind their failure in repayment were beyond their control: poor rainy
season and its consequences of low yield.
For the supply side the
repayment efficiency indicators were relatively week and the general
trends of the defaults, arrears, repayment are in a continuous increase
with time. The study recommends that ABS should strengthen its follow
up and monitoring systems, and provide adequate microfinance at right
time. Likewise women farmers should be encouraged to change their
attitude and beliefs towards commercial production, adopt water
harvesting techniques, such as chisel plow, and trained on the integrated
