Micro-Finance As A Mechanism For Poverty Alleviation In The Sudan A Case Study: The Experience Of The Savings And Social Development Bank As An Example

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Salih Gibriel Hamid, Ahmed
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Micro-finance has been practiced informally in Sudan and elsewhere for a long time through the conventional relations in the rural agricultural communities. But the steady increase in population and competition on the meagre resources has forced the human being to think about better means. The main obstacle for a family to meet its basic needs is the income poverty. Before the 20th Century formal financial institutions were not involved in micro-finance delivery. The NGOs served as efficient organs practicing credit delivery to the needy people. Unfortunately the efforts of NGOs diminished due to the scarcity of resources, because donors curbed down the donations for economic, political, social and strategic reasons. In the 20th century, specialized banks undertook micro-finance delivery. The most famous banks are Grameen Bank in Bangladesh, Rakyat Bank in Indonesia and others in India and South America. The main objectives of these banks were to deliver micro-finance to small producers in order to alleviate the escalating poverty. All the experiments of the banks have emphasized credit delivery and savings concurrently. Savings and Social Development Bank (SSDB) came to being with a Presidential Decree in 1995, after the World Summit for Social Development (WSSD). The Government of Sudan as well as other representatives committed themselves to the idea of poverty eradication and social empowerment. Based on this commitment, the Ministry of Finance and National Economy (MFNE), contributed in the capital of SSDB with 98% and the Bank of Sudan with 2%. The total amount of the paid-up capital is SD 4.6 billion (US$ 18.4 million) by the 31st of December 2004,while the commitment of the Government of Sudan was to raise the paid-up capital of SSDB to SD 7 billion (US$28 million). In the field survey; I have conducted two random samples. The first survey covered four sectors i.e. (agriculture, livestock, small-industries and service). The second survey is conduced to trace the performance of micro-finance in tea vending as a new initiative dealing specifically with women. This survey strengthened the outcome of the first survey, and assured the possible success of micro-finance as a poverty alleviation intervention mechanism. The recommendations dealt with the major elements that affect the performance of SSDB in micro-finance and commercial financing whether at the Government or the bank levels
Micro-Finance,Mechanism,Poverty Alleviation ,Sudan,Experience , Savings ,Social Development Bank , Example