MICROCAPITAL BRIEF: Islamic Development Bank (IsDB) Approves $10m Participation in Irada Microfinance Institution of Sudan

The Islamic Development Bank (IsDB), a financial institution in Saudi Arabia, recently approved an equity investment of USD 10 million in IRADA Microfinance Institution Project, Sudan (Irada). Irada plans to raise capital of SDG 140 million (USD 50 million) to provide microfinance products to individuals, families, social groups and other microfinance agencies in Sudan. The development of Irada is reportedly a response to a high demand for Islamic microfinance products in the country.

Irada is being backed by Bank Al Khartoum, a Sudanese bank, which plans to hold 70 percent of the MFI’s shares. Al Khartoum has already disbursed approximately USD 42 million to 90,000 Sudanese citizens through the Al-aman microfinance fund, a fund of SDG 200 million (USD 74.9 million) backed by 32 Sudanese banking institutions and Foundation Diwan az-Zakat.

The Central Bank of Sudan has already issued a license for Irada. The MFI hopes to reach 325,000 clients in its first five years of operation.

Bank of Khartoum has 17 branches in Khartoum, Sudan’s capital and 33 other branches countrywide.

The only Sudanese MFI that reported 2010 data to the US-based Microfinance Information Exchange (MIX), PASED, held a gross loan portfolio of USD 900,000 disbursed to approximately 4,000 borrowers.

By Charlotte Newman, Research Associate

About Irada
Irada is a microfinance institution (MFI) in Sudan launched in 2012 and backed by the Islamic Development Bank and Bank Al Khartoum of Sudan. Irada plans to raise capital of SDG 140 million (USD 50 million) to provide microfinance products to individuals, families, social groups and other microfinance agencies in Sudan.

About Islamic Development Bank
The Islamic Development Bank (ISDB) is a development finance institution founded in 1973 in Saudi Arabia. It aims to support economic development and social progress in its 56 member countries and Islamic communities around the world. ISDB participates in equity capital and disburses loans to support projects and enterprises that are compatible with its own mission. As of 2010, ISDB has a loan portfolio worth USD 5.6 billion. ISDB does not report financial information the Microfinance Information Exchange (MIX), the US-based nonprofit data provider.

Sources and Additional Resources:

International Islamic News Agency: “Sudan/IDB: IDB Approves USD $10 million Equity in IRADA Microfinance Institution Project,” http://iina.me/wp_en/?p=1007626

MicroCapital.org story, October 3, 2011, “MICROCAPITAL BRIEF: Insurance Industry in Sudan to Guarantee Loans for Microfinance Projects,” https://www.microcapital.org/microcapital-brief-insurance-industry-in-sudan-to-guarantee-loans-for-microfinance-projects/

MicroCapital Universe Profile: Irada
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Irada

MicroCapital Universe Profile: Islamic Development Bank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Islamic+Development+Bank+%28ISDB%29

MicroCapital Universe Profile: Central Bank of Sudan
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Sudan+%28CBOS%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

Similar Posts: