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DATE: May 10, 2009<br />

PARTICIPANTS: Irene Karimi, COP for GEMSS project<br />

Ahmed Sidahmed<br />

Meg Brown<br />

PURPOSE: To learn about the microf<strong>in</strong>ance sector <strong>in</strong> Sudan <strong>and</strong> USAID’s support to see if there<br />

could be l<strong>in</strong>ks to the new ag program<br />

DISCUSSION HIGHLIGHTS:<br />

• There are not many microf<strong>in</strong>ance <strong>in</strong>stitutions (MFIs) <strong>in</strong> S Sudan, the predom<strong>in</strong>ant ones be<strong>in</strong>g<br />

SUMI (Sudanese Microf<strong>in</strong>ance Institution) <strong>and</strong> BRAC (Bangladeshi MFI). SUMI has 5 branch<br />

offices, $2.4 mil <strong>in</strong> capital <strong>and</strong> is close to be<strong>in</strong>g susta<strong>in</strong>able.<br />

• GEMSS now work<strong>in</strong>g to strengthen the Microf<strong>in</strong>ance Forum <strong>and</strong> its 5 members (SUMI, BRAC,<br />

CDS, Hamud, F<strong>in</strong>ance Sudan). The Forum meets monthly – is establish<strong>in</strong>g best practices for<br />

members.<br />

• MFIs, accord<strong>in</strong>g to Irene are now “go<strong>in</strong>g deep” <strong>exp<strong>and</strong><strong>in</strong>g</strong> <strong>in</strong>to rural areas.<br />

• Interest rates are 3%/mo <strong>in</strong> general, loans mostly go<strong>in</strong>g for trade <strong>and</strong> bus<strong>in</strong>esses.<br />

• Bank of S Sudan has a microf<strong>in</strong>ance unit, GOSS is committed to MFI development. BOSS is<br />

receiv<strong>in</strong>g tra<strong>in</strong><strong>in</strong>g on bank<strong>in</strong>g operations, <strong>and</strong> will get an advisor.<br />

• Money transfers are possible between MFI branches now with Afritrans company. Traders can<br />

use this facility.<br />

• MFIs want to go <strong>in</strong>to sav<strong>in</strong>gs, which is now allowed under the new legislation with the post<strong>in</strong>g of<br />

$500,000 bond.<br />

• BDS services – Juba Inst. of Management provides tra<strong>in</strong><strong>in</strong>g <strong>in</strong> bookkeep<strong>in</strong>g for loan officers,<br />

audit <strong>and</strong> <strong>in</strong>ternal controls.<br />

• SUMI – gives group loans up to $1,000, <strong>in</strong>dividual graduates from groups, up to $10,000<br />

• Kenya Commercial Bank is here <strong>and</strong> <strong>in</strong>terested <strong>in</strong> MFI lend<strong>in</strong>g. Equity Bank (Kenya) has license<br />

to come to here. Nile Bank has collapsed, Buffalo Bank only money transfers.<br />

• For ag lend<strong>in</strong>g via MFIs, must show the viability of the ag activity as a bus<strong>in</strong>ess.<br />

EXPANDING AGRICULTURE AND FOOD SECURITY ACTIVITIES IN SOUTHERN SUDAN 63

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