The government of South Sudan and the International Finance Corporation (IFC), the private investment arm of the World Bank Group, recently launched a program to develop South Sudan’s private sector with USD 9 million in funding from donors that include the governments of Denmark, Ireland, the Netherlands, Norway and the United States. IFC will manage the program in collaboration with various South Sudan government agencies and private sector representatives. The focus of the program consists of attracting new investments; developing small and medium-sized enterprises (SMEs) through training and capacity building; and improving access to financial services, including leasing and mobile banking.
South Sudan is to become an independent state on July 9, 2011. Between 2005, when the Interim Constitution of Southern Sudan was constituted, and February 2011, approximately 10,000 businesses have been registered, five new mobile operators have begun operations and seven commercial banks and five microfinance institutions (MFIs) have been established.
Funding for the program from the US government is disbursed by the United States Agency for International Development (USAID), which offers a suite of resources aimed at improving the outcomes of microenterprise development research and practice at http://microlinks.kdid.org.
By Julie Moksim, Research Associate
About the International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loan and debt securities, equity investments, advisory services and technical assistance intended to alleviate poverty and promote open and competitive markets in developing countries. IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion.
About United States Agency for International Development (USAID): The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, global health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides partial credit guarantees that cover up to 50 percent of defaults on loans made by private financial institutions to institutions that lend to underserved borrowers.
Sources and Additional Resources:
International Finance Corporation (IFC) Press Release: “South Sudan, Donor and IFC Partnership Supports Development of Vibrant Private Sector”, February 28, 2011, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDoc…
MicroCapital.org Brief, October 28, 2010: Chairman of Microfinance Association of Southern Sudan Warns of Opacity in Donor Funding, https://www.microcapital.org/microcapital-brief-cut-extra-space-after-col…
MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…
MicroCapital’s Microfinance Universe Profile: United States Agency for International Development (USAID)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Uni…
Browse the MicroCapital Universe and add your entry to our wiki at https://www.microcapital.org/microfinanceuniverse/
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