MICROCAPITAL PAPER WRAP-UP: “Youth’s Financial Inclusion Policy Reform Study;” by Yassir Ahmed Hassan Jamie; published by MDG Achievement Fund; Microfinance Unit, Central Bank of Sudan; United Nations Development Programme

By Yassir Ahmed Hassan Jamie, published by MDG (Millennium Development Goals) Achievement Fund; Microfinance Unit, Central Bank of Sudan; United Nations Development Programme, May 2012, 103 pages, available at http://www.microfinancegateway.org/gm/document-1.9.57618/Youth%20Financial%20Inclusion%20Policy%20Reform%20Study%20FINAL.pdf

This study, conducted in the Sudanese states of Blue Nile, North Kordofan and South Kordofan, aims to identify the challenges faced by youth, women and vulnerable groups in accessing financial services and to make recommendations to improve financial inclusion. As defined in the study, financial inclusion is “the quality supply of financial services to all who could use them, combined with a regulatory framework and client knowledge levels that enable the safe and informed use of those services.”

The first problem addressed by the study is the cost and limited availability of money-transfer services. The study suggests improvements in technology such as creating services that allow transfers to be made via mobile phones. Branchless banking can be particularly important in places like Sudan where conflict can damage bank branches and disrupt access to them.

The author states that regulation in the country makes it expensive to launch new financial service organizations or to open new branches. The author argues that these regulations particularly impact the ability of NGOs to enter the market although they are critical to achieving financial inclusion as they are better suited to protecting clients, adjusting product designs to meet client needs and providing nonfinancial assistance such as business skills training and financial education. The study recommends that the Central Bank of Sudan (CBOS) relax these regulations and provide incentives and training to support NGOs in opening new branches. Additionally, the study recommends CBOS support  NGOs in increasing financial inclusion by mapping appropriate NGOs, providing grants and other incentives, offering training courses and sharing data.

The report also includes a survey indicating that youth in the area believe the ceiling on microfinance loan sizes is too low to allow them to build a lasting enterprise and that the collateral required is not reasonable. The author suggests that, especially in areas of conflict, loans need to be greater in amount and carry longer terms to allow businesses to take root. In order to make saving more attractive, the report recommends including a savings account in every financial service package.

The report also suggests CBOS support the agricultural sector by establishing borrowing groups among agricultural workers to foster social responsibility, minimize lending risk and provide a setting for training workers in saving money and storing crops.

By Jaime Fellers, Research Associate

This is one source for roof windows.

Sources and Additional Resources:

[1] “Youth’s Financial Inclusion Policy Reform Study;” by Yassir Ahmed Hassan Jamie; MDG Achievement Fund; Microfinance Unit, Central Bank of Sudan; United Nations Development Programme: May 2012, http://www.microfinancegateway.org/gm/document-1.9.57618/Youth%20Financial%20Inclusion%20Policy%20Reform%20Study%20FINAL.pdf

MicroCapital Article: “MICROCAPITAL PAPER WRAP-UP: ‘Building Livelihoods. A Field Manual for Practitioners in Humanitarian Settings – Microfinance Interventions”, Published by The Women’s Refugee Commission'” by Emilia Akonom, March 13, 2012, https://www.microcapital.org/microfinance-paper-wrap-up-building-liveliho

MicroCapital Article: “MICROCAPITAL BRIEF: Sudanese Government to Form Microfinance Council for The State of Blue Nile” by Brendan Millan, May 17, 2012, https://www.microcapital.org/microcapital-brief-sudanese-government-to-fo

MicroCapital Article: “MICROCAPITAL BRIEF: Sudan’s Northern Darfur State Forms Higher Council of Microfinance”, by Charlotte Newman, March 16, 2012, https://www.microcapital.org/microcapital-brief-sudans-northern-darfur-st

MicroCapital Article: “MICROCAPITAL BRIEF: Microfinance Council Established in Sudanese State of Khartoum”, by Brendan Millan, February 20, 2012, https://www.microcapital.org/microcapital-brief-microfinance-council-esta

MicroCapital Universe Profile: Bank of Sudan

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cen

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