The Role of Central Bank of Sudan in Boosting Microfinance 1999- 2009

Abstract

This study is to shed light on the role of Central Bank of Sudan (CBoS) in boosting microfinance (MF) during the period: 1999-2009. The study followed the historical descriptive analytical approach. The study primary data has been collected through questionnaires, field trips and interviews with stakeholders. the secondary data has been used to qualify the primary data. The study revealed that the Microfinance Unit of CBoS paid valuable efforts to find out an enabling environment for microfinance, MF provided during the research period accounted for 3.8% on average in comparison to the total banking advances, banks are insist to provide MF against traditional guarantees, the majority of MF operations is not covered by insurance, the MF applications period of study is too long , and there is no link between the provision of MF and marketability of outputs of the financed projects. The study recommended that the definition of MF should be broaden to include savings, Mobile transfers and loans to cover the basic needs of clients (food, education, health), MF to be increased up to 30,000 Sudanese pounds, the Mf insurance and guarantees problems must be resolved, there is a critical need for building a central microfinance database, establishment of National Agency for Microfinance insurance and wholesales MFIs, adoption of a Comprehensive National Microfinance Strategy in which the role of CBoS to be centered to the policies, regulatory and supervisory frameworks. For more efficacy, the Microfinance Unit of CBoS to be a sub-division of the Finance Directorate in the bank or it should be developed to become a General Department.