Khartoum - Shadia Basheri
Central Bank of Sudan yesterday issued directives regarding micro and sub-micro-finance to the banks. The circular note directs the banks to consider ways and appropriate structural arrangements according to self-evaluation of capabilities and future plans,
objectives and expectations of growth in micro-finance and set up plans to allocate not less than 12% financing portfolio for micro-finance taking into account of giving priority to micro-finance.
The circular note demands the banks of the necessity to direct resources according to geographical and population distribution focusing on rural areas, with the necessity of just distribution among states in accordance with the state's general strategic directives for development and investment.
The Central Bank directed the banks to give priority to sectors when granting micro-finance. These sectors include agriculture (animal and plant), projects supporting micro-finance funded by banks in accordance with indicators, which are conveyance of agricultural equipment such as tractors, harvesters, transportation vehicles, water stations … etc. while the industrial sector includes financing conveyance equipment of small workshops to professionals and craftsmen. In financing services the consuming sector should be given priority in terms of funding small kitchens, printing equipment, in addition to, financing trade stores, residential and real estate and building materials.
The Central Bank takes into account the developmental aspects of small projects, hence granting medium and long term financing connected to the cash flow of the project whose period should not exceed 5 years.
