Preview

Microfinance & Poverty Reduction in Sudan

Powerful Essays
Open Document
Open Document
6712 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Microfinance & Poverty Reduction in Sudan
In the name of God the Merciful

Microfinance & Poverty Reduction in Sudan
(Challenges & Problems)
Dr. Omer Ali Babiker Eltahir
Jazan University
College of Business Administration
Finance & Banking Department

CV

D. Dr. Omer Ali Babiker Eltahir

Specialization: of Banking Studies

Rank: Assistant Professor

Institution: Jazan University

Location: Kingdom of Saudi Arabia
Nationality: Sudanese
Mobile Phone: 00966536691922

Email: obabiker@jazanu.edu.sa - E-Mail:oeltahir@hotmail.com

In the name of God the Merciful
Submitted
Microfinance services are part of the innovative financial services in the area of banking and finance non-bank, and the growth of this sector will be depending on the demand for it and the administrative and technical expertise in this area. The process of providing financial services to the poor in the community is an important part of strategies to reduce poverty and the institutions that provide microfinance is one of the tools that play this role if achieved financial sustainability of any increase supply to meet demand.
The interest in microfinance in Sudan increased in the recent period, especially, and that the State at its peak moving to embrace this work to simplify procedures, and has been given Central Bank of Sudan great interest sector microfinance and with that we find deployment weak in the area of microfinance services Islamic incomprehension of this type of funding and requirements for success.
Importance of the study
Poverty alleviation and combating is a strategic objective seeks world to achieve in the third millennium, and is difficult to determine the microfinance clients and reach of the challenges facing the microfinance and also find that the lack of guarantees for funding and the high cost of this type of financing and cost follow-up is one of the problems facing the Sudan, and from here stems the importance of this study to take up microfinance in Sudan as a tool for

You May Also Find These Documents Helpful

  • Better Essays

    The first feature of microfinance that comes to one’s mind is its huge growth potential. As stated in the case, only 20% of overall demand for microfinancing is being met. 420 million people don’t have access to microfinance according to Exhibit 5. Microfinance is believed to be rather helpful in improving people’s lives. Using the small credits, clients start their small businesses improve and their living standards which should lead to increase of life conditions in the whole country. The experience can also attract international companies to open plants and fabrics there as lack of skilled working power is one of the main constrain in FDI. However there is no clear evidence on the real impact of microfinancing on macro level. Moreover MFIs are not transparent at all, which is a huge disadvantage from investor’s point of view. Investors want to know the business they are investing in.…

    • 1246 Words
    • 5 Pages
    Better Essays
  • Good Essays

    There is to a certain level of agreeability that micro loans towards small business help developing nations. However, microfinance is not the ultimate answer. There is only to a certain level of acceptance of the ideal that majority of economic issues in developing countries can be solved by micro loans (Cgdev.org 2009). Again, these loans…

    • 690 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    This paper gives an introduction to Microfinance Institutions (MFIs) informal financial service delivery mechanism which are not under any regulatory framework like the formal sector. So, there is a necessity to internalize a built-in internal control system through self-regulation to mitigate exposure to risk in MFI. In 2.0 sound and reliable management system for MFIs through self-regulation are discussed. Section 3.0 discussed under internal control its basic criteria: appropriateness, consistency and cost effectiveness. In section 4.0 an overview of risk management of MFIs are discussed under different dimensions: governance risk, management risk which are split into operating risk and financial risk. Financial risk is again sub-divided under portfolio risk, liquidity risk and interest risk. Under section 5.0 tools for effective internal control in MFI are discussed. Section 6.0 portrays steps for designing internal controls for MFI. In section 7.0 conclusion has been drawn that the internal control can be expected to provide only reasonable assurance.…

    • 1042 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    The book “Banker to the Poor” by Muhammad Yunus is the story of the Grameen Bank Program, which is founded in Bangladesh by Yunus to help the poor. Born in 1940 in the city of Chittagong, Professor Yunus studied at Dhaka University in Bangladesh, and then received a Fulbright scholarship to study economics at Vanderbilt University. He received his Ph.D. in economics from Vanderbilt in 1969 and the following year became an assistant professor of economics at Middle Tennessee State University. Returning to Bangladesh, Yunus became the head of the economics department at Chittagong University. Yunus founded the Grameen Bank in Bangladesh in 1983 with the hopes of helping poor people escape from poverty by providing them loans which no other bank would. With Grameen Bank, he pioneered microcredit and has created a new dimension for capitalism which he calls “Social Business”. (Yunus, Yunus Center, 2011) (Biography.com)…

    • 1192 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Poverty is one of the vital problems of the third world countries, and to elevate poverty microcredit has become the most popular approach to address this undesirable phenomenon. According to Jonathan Murdoch, Chairman of UN Expert Group on Poverty Statistics, "Microcredit stands as one of the most promising and cost-effective tools in the fight against global poverty." Based on three C (character, capacity and capital ) this model, perceived more than a quarter century ago in Bangladesh, is now being pursued around the globe. In spite of this popularity, there is…

    • 3120 Words
    • 13 Pages
    Best Essays
  • Good Essays

    Issues of Poverty

    • 575 Words
    • 3 Pages

    Second, actions to alleviate poverty should focus on local needs and be sustainable to maximize its positive impact. We have witnessed the remarkable success of microfinance – a social business that focuses on making financial services accessible to the rural poor. Microfinance fills the gap where large commercial banks are unable to provide due to the cost constraint. Microfinance provides the avenue for the poor to take out small loans to grow their domestic business as well as a relatively safe platform for saving and investment. It has…

    • 575 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Domestic Division of Labour

    • 4524 Words
    • 19 Pages

    Secondly, we should look beyond microcredit to other financial services including savings. In the interest of the poorest and women in particular, there may be new possibilities when we view microfinance as a tool not only for income promotion, but income protection as well.…

    • 4524 Words
    • 19 Pages
    Powerful Essays
  • Best Essays

    Nayani, Karim. "Aga Khan Agency for Microfinance." Press Center. Aga Khan Development Network, 2007. Web. 01 Dec. 2012. <http://www.akdn.org/Content/173>.…

    • 3078 Words
    • 10 Pages
    Best Essays
  • Best Essays

    Since Garmeen bank model is conducive to reduce poverty, more and more developing countries accept Microfinance project as a tool to help rural people in their own countries. However, this case study demonstrates the bottleneck of Microfinance project in China, which can be concluded as implementation of government policy, working structure and lack of non-banking activities. Take the essence and discard the dregs of Indian experience, China has to apply Garmeen model into Chinese model. According to analyzing exist data, I present three alternatives to solve the problem. Moreover, after recommendation of alternatives, I provide an action plan, include but not limited in Money loan, extra non-banking activities and new working structure, which can effectively work in China. Action plan start with basic information analysis, target choice and provide further detail of non-banking activities.…

    • 1893 Words
    • 8 Pages
    Best Essays
  • Good Essays

    Susu in Ghana

    • 446 Words
    • 2 Pages

    The service is vital, to say the least. Micro-savings not only offer the safe storage of scarce funds, they also help lessen the financial volatility of the poor, who lead lives marked with financial unpredictability. At the same time, microcredit offers the poor a chance to easily start their own income generating activities.…

    • 446 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Microfinance can be defined as the provision of a broad range of financial services such as deposits, loans, payment services, money transfers and insurance to poor and low-income households and their micro-enterprises.Microfinance is a powerful tool for achieving higher levels of financial inclusion in economies. Microfinance is one of the key driver which affects the financial inclusion. Increased inclusion brings both efficiency and equity benefits. Microfinance is also revealing substantial commercial opportunities and attracting growing private capital flows.…

    • 4403 Words
    • 18 Pages
    Better Essays
  • Powerful Essays

    Tobit Regression Model

    • 859 Words
    • 4 Pages

    Table 1 showed the empirical results of microfinance and poverty reduction through the Tobit regression method of analysis. For this study to evaluate the influence of microfinance on the poverty reduction, Tobit regression model was regressed on the poverty reduction, on the key variables in this study. These include micro-credit, age, household size, qualification, nature of business, duration of membership and village type. In this model, poverty reduction is a dummy and is considered as the dependent variable, while micro-credit, age, household size, qualification, business type, duration of membership and village type as independent or explanatory variables.…

    • 859 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    There are a number of non-government organisations (NGOs) that engaged in microfinance. These include Yayasan Usaha Maju operating in Sabah, Koperasi Kredit Rakyat in Selangor and the best and significantly known microfinance institution (MFI) is Amanah Ikhtiar Malaysia (AIM).…

    • 1816 Words
    • 8 Pages
    Good Essays
  • Best Essays

    Impact of Micro Finance

    • 5000 Words
    • 20 Pages

    Credit Availability to Small and Medium Scale Enterprises in Nigeria[J]. Importance of New Capital Base for Banks – Background and Issues, 2004 [17] Okpukpara B. Strategies for Effective Loan Delivery to Small – scale Enterprises in Rural Nigeria[J]. Journal of Development and Agricultural Economics, 2009, 1(2):041-048 [18] Riding, A. Estimating Informal Investment in Canada[J]. Report prepared by Equinox Management Consultants as Part of the SME Financing Data Initiative, 2005 [19] Riding, A. Government of Canada Small Business Financing Profile[J].SMEs Financing Data Initiative, 2006 [20] RCS. SME Access to Financing[J]. Addressing the Supply Side of SME Financing, 2005 [21] RPED. Africa Region Nigeria Private Sector Assessment[J]. Technical Papers, 2002 [22] Tsuruta D. & CRD Association. How Do Small Businesses Finance their Growth Opportunities? The Case of Recovery from the Lost Decade in Japan, 2010 [23] Satta, T.A. Journal Microfinance Regulation Influence on Small Firms Financing in Tanzania of Financial Regulation and Compliance, 2003, 12(1) [24] UNIDO. Supporting Private Industry[J]. Financing of Private Enterprises Development in Africa, 1999 [25] USAID. Micro, Small and Medium Enterprises Financial Services Demand Survey Nigeria[J]. PRISM Project, 2005 [26] World Bank. Nigeria Private Sector Assessment[J]. Technical Papers, Regional Program on Enterprise Development, Africa Region, 2002 [27] Wydick, B & Kevan, M. Micro Enterprise Lending to Female Entrepreneurs: Sacrificing Economic Growth for Poverty Alleviation?[J]. World Development and Cultural Change, 2001, 47(4): 853–869 [28] Zavatta, R Financing Technology Entrepreneur and SMEs in Developing Countries[J].Challenge and Opportunities: Country of Study: Senegal, 2008…

    • 5000 Words
    • 20 Pages
    Best Essays

Related Topics