By Professor Badr El Din A. Ibrahim
Abstract
The purpose of this paper is to review and compare the
distinct features and practices of Sudanese and Ethiopian microfinance sector.
Analysis includes general characteristics of both sectors such as institutional
structures/ characteristics, policies, programs, regulation, strategies,
wholesale markets, technical assistance etc. Moreover, the major
characteristics of microfinance institution (MFIs) in both countries are
compared, and a review and comparison of some performance criteria of MFIs is
made. The methodology consists of analyzing and examining issues at hand using
some indicators and qualitative information. The paper come
up with some
recommendations regarding the constraints facing microfinance (MF) sectors in
the two countries, and also suggests how the two microfinance experiences can
learn from each other. The
Sudanese MF experience, we argued, can give a lesson from its diversified
wholesale market via the government-owned Wholesale Guarantee Agency. The paper also propagates the merits of
Islamic microfinance as practiced in Sudan to Ethiopia-Muslim minorities. We argued that this can be carried out via
new windows or specialized branches within the existing MFIs; no need for a new
legislations or a new MFIs structure.
Sudan can learn from the role and functions of AEMFI, to establish the Sudanese
Association of Microfinance Institutions. Sudan can also
learn from the Ethiopian social
management system to
self monitor the social impact of microfinance on their clients. The paper is constrained by the limitation of
quantitative data, especially financial data,
regarding the Sudanese MFIs. This hinders deep comparison of the
financial performance of MFIs in the two countries. More research is required
in this area.
Comments are closed.