Analysis of Microfinance in Gadarif State, Sudan with Emphasis on Women Farmers

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