THE SECOND RESPONSIBLE MANAGEMENT EDUCATION RESEARCH

CONFERENCE: INCLUSIVE BUSINESSES

7-8 September 2015Cairo, Egypt

Microfinance and Inclusive Business Practices in Sudan: The Role of Ahfad University for Women

(AUW), Sudan

Presenter: Dr. Widad Ali A/Rahman,

Microfinance is the offer of financial & non-financial services to people excluded from the traditional

banking system…Primarily women Mainly as a tool for poverty

reduction

The services are adapted to the needs of the targeted groups

2By: Dr. Widad Ali A/Rahman

_______________________________________________________________________Why Targeting Women?

“One billion people in the world are illiterate and two thirds of those people are women.” Muhammed Yunus

The majority of the global poor are women and the feminization of poverty is a proven phenomenon.

Gender inequalities deprive women from financial resources& access to banks

3By: Dr. Widad Ali A/Rahman

Microfinance is a tool against poverty by enabling

the beneficiaries to :

Create: sustainable activities to increase their

incomes /establish small enterprises

Reduce: external shocks

Improve: the living conditions of entrepreneurs

and their families

Empower: people and mainly poor women

4By: Dr. Widad Ali A/Rahman

Listen to the needs and constraints of the excluded social groups & offer them adapted financial tools to empower themselves ( solidarity groups)

Goal: Empowering the poor

Means: Set up financial institutions with a social mission of inclusive business

Spirit: SUSTAINABILITY

5By: Dr. Widad Ali A/Rahman

10,000 MFIs managing a global MF portfolio of $30 Billion

150 M micro-credit active clients

300 M micro-saving active clients

50 M micro-insurance active clients

Sources : CGAP, BIT, Microcredit Summit, PlaNetFinance

6By: Dr. Widad Ali A/Rahman

An old practice at both formal and informal levels

Informal MF (social groups: ROSKAS, Shiel)

Formal MF : Savings and Development Bank, NGOs …

A government strategy supported by the Central Bank/ MF Unit in 2007

As part of the poverty reduction strategy

A regulatory frame to govern and control

7By: Dr. Widad Ali A/Rahman

Targeting women, youth as top priority

Commercial banks are directed to allocate 12% of investment ceiling for MF

Many other stakeholders involved such as NGOs,CBOs and Zakat Chamber

More people are aware about MF

Involvement of new actors

Restructuring of the industry ( although it is a political game!!!!)

Threats of economic/budgetary deficit after the oil cuts

8By: Dr. Widad Ali A/Rahman

Savings

Involve more people in MSEs

Obtain returns on investments

Keep savings secure and confidential

Avoid negative returns on savings

Credit

Expand and diversify enterprises MSEs

Helps to reduce risk, improve management, raise productivity

Lower cost than credit from informal moneylenders

Helps increase household income

…and helps smoothen cash flows across time

9By: Dr. Widad Ali A/Rahman

The School of Management Studies embraces the university philosophy of community development.

Contribution to small enterprise sector development through community oriented curricula & training

Engaged with the business sector contributing to the small enterprise sector development through :

- research- students’ in-service training - capacity building of women in small

enterprises

10By: Dr. Widad Ali A/Rahman

The university strives to empower poor women economically and increase their income

Collaborate with NGOs to provide micro-loans & training for MSEs in rural areas since the seventies of the last century.

11By: Dr. Widad Ali A/Rahman

AUW administers a revolving fund program.

Beneficiaries from poor urban neighboring communities close to AUW.

The project was initially supported by UNFPA in 1997 and has been solely sustained by the university since 2005 (AUW Revolving Fund Report, 2007).

12By: Dr. Widad Ali A/Rahman

Integration of MF & MSE concepts in curriculum

The School of Management Studies at AUW has developed a Master program in Microfinance in collaboration with the Central Bank of Sudan.

Entrepreneurship is a course taught to all lines of specialization.

13By: Dr. Widad Ali A/Rahman

The university strives to empower poor women economically and increase their income through administering a revolving fund program. It is one of the benevolent activities of AUW that target beneficiaries from poor urban neighboring communities close to AhfadUniversity for Women. The project was initially supported by UNFPA in 1997 and has been solely sustained by the university since 2005 (AUW Revolving Fund Report, 2007).

14By: Dr. Widad Ali A/Rahman

At least 55 poor families are supported to establish MSEs from the microfund.

The repayment rate has been maintained to 97%.

Poor families /women economically empowered through micro-business

In addition they are linked to Ahfad Family Health Centre for utilization of contraceptives, pre- and-antenatal care, pap-smear exam, nutrition consultation, child growth and monitoring and other needed services.

15By: Dr. Widad Ali A/Rahman

16By: Dr. Widad Ali A/Rahman