August 16, 2010
Southern Sudan Microfinance Industry Seeks to Expand Loan Services
First Regional Conference Finds Practical Ways Grow Industry: Train Staff, Listen to Clients
Microfinance practitioners in Southern Sudan recently challenged donors and other industry stakeholders to help them reach more borrowers by focusing on two basics: building capacity and listening to clients.
“The smallest adjustment to a loan product can sometimes transform a product utilized by a few hundred borrowers to one that benefits thousands,” says MicroSave Africa Director David Cracknell, one of more than 115 experts who attended the First Southern Sudan Microfinance Conference in Juba.
“And the only way we can discover that change is to listen to our clients.”
First Regional Microfinance Conference
A historical first, international, regional and Southern Sudanese government officials, donor representatives, technical experts and microfinance practitioners gathered July 20-21 to discuss the state of microfinance services and institutions (MFIs) in their communities as well as share best practices and determine ways to expand outreach and increase sustainability.
The microfinance industry in Southern Sudan currently reaches an estimated 45,000 borrowers, a fraction of the people who could benefit from small loan services, say local practitioners.
Conference attendees identified several key obstacles to expanded loan services, notably the industry’s poor physical and legal infrastructure and the low financial literacy of both customers and staff. And while changing the state of large-scale infrastructure may be beyond the MFI practitioners’ control, they agreed that they could expand and improve consumer services by investing in more basic changes like increased legislative advocacy efforts, staff training and improved financial literacy for staff and clients.
Rebuilding Microfinance in Southern Sudan
Southern Sudan is rebuilding after a protracted civil war. While it has the beginnings of a financial sector—three microfinance institutions, a microfinance association and an established currency—it is hampered by low technical and managerial capacity, insufficient resources, and inadequate physical and legal infrastructures.
In 2009 AED and ACDI/VOCA launched the USAID-funded Generating Economic Development through Microfinance in Southern Sudan (GEMSS) project to strengthen Southern Sudan’s microfinance sector. The three-year project provides technical assistance and lending capital toward expanding loan services to new areas and ultimately increasing employment opportunities and household incomes.
“The conference helped connect partners to share knowledge and experiences for the first time,” says ACDI/VOCA Technical Director Maura Brazill. “We on the GEMSS team are excited by the common commitment to expand financial services for the population of Southern Sudan.”
Microfinance Can ‘Transform Millions of Lives’
The microfinance conference was sponsored by the USAID GEMSS project, in partnership with the government of Southern Sudan (GOSS), the Microfinance Association of Southern Sudan and the Southern Sudan Microfinance Development Facility.
The event drew keynote speakers from the U.S. government, GOSS and international organizations, including U.S. Consul General Ambassador Barrie Walkley, World Bank Country Manger Laurence Clarke, and GOSS Minister of Commerce and Industry Stephen Dhieu.
Walkley stressed the importance of microfinance in his keynote speech, saying, “The support for the microfinance sector has the potential to transform millions of lives.”
As Southern Sudan moves toward full independence in 2011, a strong microfinance sector will play an important role in helping microenterprises to grow and meet Southern Sudanese expectations for its future.
