Where We Work : Southern Sudan : Microfinance

Microfinance is at the heart of BRAC’s integrated approach to alleviating poverty and helping poor Southern Sudanese women realise their potential. More than 22,000 women are members of 1,425 community-based microfinance groups throughout Southern Sudan. They gather weekly in villages, towns and city neighbourhoods to make repayments on their loans and apply for new ones. 

BRAC's microfinance programme has been designed to serve large numbers of poor people with reliable access to cost effective financial services. 

Programme Components 

Women's Groups: Community partnerships and institution building are essential for poor people if they are to change their economic, social and political conditions. We deliver our Microfinance and other programmes through organising groups of poor women who come together to improve their socioeconomic position. 

BRAC microfinance branch offices conduct area surveys and consult with community leaders and local elders to select the 25-30 members of each group. The group is then sub-divided into smaller groups of five, each with their own elected leader. The members of the small groups take co-responsibility to solve peer repayment problems. 

New borrower groups meet four times before any loan disbursement takes place. After that, they meet weekly to discuss credit decisions with their dedicated BRAC credit officer and make their loan repayments. BRAC provides training and technical assistance to its members and others in the community, empowering them to earn more income from existing activities and start new ones. 

Microloans

At the core of the programme are microloans, which are exclusively for the women participating in the group process. Borrowers range in age from 20-50 with little or no education. BRAC lends to women who are not served by other microfinance institutions. Borrowers typically operate businesses that provide products or services to their local communities. Women with seasonal businesses, such as farming related activities, may also be eligible for shorter term loans. 

Sudan Recovery Fund 

Microfinance is not the only way to promote financial development. The United Nations Development Programme’s Sudan Recovery Fund for Southern Sudan (SRF-SS) aims to facilitate a transition from humanitarian aid to recovery assistance. In 2009, the SRF-SS awarded BRAC the responsibility to implement its small grants fund of USD 2.5 million to as many as 70 national NGOs and community-based organisations in all 10 states. BRAC has screened these groups, supported their capacity building and direct implementation of agriculture, education, water and other initiatives. The objective of the projects- 47% for agriculture-is to make quick returns for the community. 

Most popular loan uses 

• Retailing – grocery, hardware stores etc.
• Running a bar/drinks shop
• Food cooking and vending
• Local beer brewery
• Charcoal selling
• Selling raw fruits and vegetables
• Selling second hand clothes/shoes
• Running a beauty parlour
• Vegetable cultivation
• Poultry and livestock rearing
• Tailoring