What is the Best Way to Manage Microfinance in Sudan?


 
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What is the Best Way to Manage Microfinance in Sudan?
Hafiz Hamza Abuelyamen, Strategy Consultant, Sudan

SITUATION OF MACRO-FINANCE IN SUDAN
The concept of Micro-Finance in Sudan is funding needs for:
- Poor people who practice a small production business or profession in the market or home and can not afford to borrow from banks, or
- Artists who are not finding the agents to loan them and not finding guaranteed support to extend these loans or giving them a helping hand in some other field of credit.
Those producers are either individuals or productive families or group of unorganized labor working in the production of various necessities of life and typically depend on local natural resources. Some of them are manufactured, mostly with few resources, and they depend on imported inputs and sell their products to meet the daily rate of demand or in response to other requests.

WHY MICRO FINANCE DOESN'T WORK WELL IN SUDAN
Such producers or professionals always suffer from lack of financial resources for the purchase of above production inputs and have to resort to borrowing either from the merchants or their neighbors. They don't have the qualifications or the safeguards that would enable them to obtain loans from banks, due to things like:
- The small size of the loan, as well as the
- Difficulty of finding a security such as a mortgage, or
- Not having knowledge of the procedures of banks.

THE DEVELOPMENT PROBLEM FACING SMALL OR MICRO ENTERPRISES
It is often like these young producers are sustaining because they are producing the needs of the poor people like them in addition to the other needs of the rich people which give them the advantage of continuous production as a result of higher demand for their products. They are mostly produce for the poor people and at the same time they are faced with the challenge of implementing the demands of non poor. So forcing the customers to pay in advance.

WHAT IS THE BEST WAY TO MANAGE MICRO-FINANCE IN SUDAN?
- Is it through banks which suffer from red tape and ignore beneficiaries and are unable to reach them?
- Or through non-governmental organizations and non-profit institutions that are able to reach the community and have their trust?
 

 
What is the Best Way to Manage Macro Finance in Sudan
Hafiz Hamza Abuelyamen, Strategy Consultant, Sudan
I think there is the need for micro finance to help such small producers, both in neighborhoods or markets in the countryside or cities. Given the micro-finance philosophy to establish a special fund so that these producers can get to the soft credit in ways that enable them to borrow and orderly repay so that they can rely on themselves to find funding away from the complexities and bureaucratic practices of banks.
Guarantees can be provided to the MF fund by the producers themselves or by other institutions with which they have relationships, like trade unions, federations or integration activities.
 

 











 

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