MICROCAPITAL BRIEF: Central Bank of Sudan Issues Monetary Policy Promoting Financial Inclusion, Competition Among Financial Institutions; Sets $30k MSE Loan Ceiling

Governor CBOS Governor Badr Ibrahim Badr Ibrahim (pictured) of the Central Bank of Sudan (CBOS) recently announced a new monetary policy intended to reduce inflation, stabilize exchange rates, finance goods produced for export, strengthen financial safety nets, boost financial inclusion and increase competition among financial services providers.

Elkhidir Elamin Mohammed, the managing director of Al-Fal MSE Finance, tells MicroCapital that, “This announcement is motivating financial institutions to innovate and link their investment activities with development goals.” Mr Elkhidir added that moving toward the CBOS financial inclusion goals will require, “day-by-day consultations, evaluation and fixes; moreover, it needs sustainable teamwork and continued capacity building interventions for funders of micro- and small enterprise (MSE).”

Among the elements of the new CBOS policies is to define MSE loans as those smaller or equal to SDG 1.5 million (USD 30,000). Mr Elkhidir believes that, “when the leaders of MSE finance harness these new policies, communities will start generating the foreign currency needed to balance Sudan’s imports and exports. This can be especially effective in rural areas where the nation’s productive power is concentrated. Most workers in Sudan are part of micro-, small and medium-sized enterprises, so this offers the potential to empower the economy of the majority!”

Sources and Additional Resources

Direct contact with Elkhidir Elamin Mohammed of Al-Fal

CBOS policy announcement
https://cbos.gov.sd/en/content/%D8%B3%D9%8A%D8%A7%D8%B3%D8%A7%D8%AA-%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D8%B3%D9%88%D8%AF%D8%A7%D9%86-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D9%84%D9%84%D8%B9%D8%A7%D9%85-2020

Al-Fal Boosts Rural, Interest-free, Value Chain Microfinance in Sudan via SAM, the Pan-African Conference on Financial Inclusion
https://www.microcapital.org/special-report-al-fal-boosts-rural-interest-free-value-chain-microfinance-in-sudan-via-sam-the-pan-african-conference-on-financial-inclusion/

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