Khartoum, Feb. 12 (SUNA) - The Senior Microfinance Advisor Prof. Badr-Eddin Abdal-Rahim has affirmed that the size and diversity of cross-border microfinance depends on the ability and presence of financiers across local branches, regional offices and their relationship with governments, pointing out that the foreign investments do not tend to invest in Islamic microfinance.
He pointed out, during a forum on "What Do Investors Want in Wholesale Finance from the Microfinance Institutions (MFIs)?", Organized by the Sudan Academy of Banking and Financial Sciences Monday, that the problems of wholesale financing in Sudan that the clients saving needs to be ratified by the regulatory authority, scarce resources of individuals and companies, Lack of clear management for the joint consortia and the direct funding from regional and international institutions suffers from the boycott and absence of country offices.
He stressed the importance of capacity building, governance, transparency, customer protection and training, and the formulation of a rural financial intermediary program involving MFIs / IFAD, the World Bank, the African Development Bank, donors and the Government; referring to the significance of extending the National Comprehensive Strategy for the development of the microfinance sector 2013-2017 up to 2020 as well as the attraction of foreign grants to implement the new strategy and allow entry and encouragement of the external private sector.
"A corrective revolution in governance at the level of the Central Bank of Sudan should be put in place and performance standards must be developed and applied in MFIs through highly professional local rating firms to clarify and raise the capacity of institutions and to manage their financial, institutional and social performance," said Prof. Badr-Eddin
The microfinance expert stressed the importance of gradual withdrawing of the central bank and to be replaced by the commercial banks to achieve part of the 15% allocated by the consortia through the financing of institutions to achieve the social dimension of Islamic banks in Sudan.
The Banking Expert Dr. Jaafar Mohamed Farah expressed the importance of concerted efforts between the Higher Council of Microfinance, banks and microfinance institutions, pointing to the importance of political and financial stability and harmony of macro policies.