Central Bank Allocates 12% of Portfolio for Microfinance

Khartoum – Vice President Hassabo Mohamed Abdul Rahman has emphasized the importance of linking issues of microfinance with economic and social reform, increase of production and productivity and tackling challenges facing microfinance.

In his speech to a forum on microfinance convened yesterday in Khartoum, he directed the Central Bank and the Ministry of Finance to support microfinance institutions across the States.

He demanded the assessment of the impact of microfinance projects which, he said, should be done by the experts from the Bank of Sudan, Ministry of Finance and Social Welfare and other competent bodies to gauge national indicators of economy.

Governor of the Central Bank, Abdul Rahman Hassan Abdul Rahman, affirmed the bank’s concern with microfinance and its projects to reach the target groups in order to disseminate the culture of microfinance among all society sections to reduce poverty and increase economic activity in the country.

He said the Central Bank allocated 12% of its microfinance portfolio to banks, adding that the bank trained 1100 staff in the field of funding and microfinance.

The governor said the bank is seeking to establish microfinance agency by benefiting from some international experiences in this field such as Pakistan, Lebanon and Malaysia.

He added that the total number of microfinance institutions reached 25, praising the performance of the Ministry of Welfare, Zakat Chambers and banks’ partners.

A safety portfolio was established with SDG 250 million as capital, he said.

Abdul Rahman lauded the efforts of women in the field of microfinance projects, underscoring the importance of consolidating efforts and coordination particularly among insurance companies to provide guarantees for funding.
He said the percentage of financing did not exceed 3-5 per cent, pointing out the endeavours by the bank to reach the target of 12% during the coming stages.

He underlined the need to measure the impact of microfinance with the participation of all competent bodies given its economic importance and its contribution in increasing production.

 

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