Experts: Success of Raising Microfinance Ceilings Depends on Reaching Target Groups

Sudanhorizon – Hala Hamza

Specialists in the microfinance sector have welcomed the decision by the Central Bank of Sudan to raise financing ceilings, noting that it could help bridge the financing gap for targeted groups. However, they stressed the need to control inflation and rebuild the productive base of the economy.

Institutional development consultant and microfinance expert Nu’man Youssef stated that the success of the Central Bank’s decision to raise ceilings for micro and small financing—and its positive impact—depends on the banking sector’s ability to reach producers amid the exceptional conditions facing the country. He added that the effectiveness of the move also hinges on its integration with broader policies aimed at stabilizing the economy, curbing inflation, and rebuilding the productive base.

Youssef told Sudanhorizon that increasing financing ceilings represents a realistic response to rising production costs and the declining purchasing power of the Sudanese pound, reflecting a positive orientation toward supporting productive sectors and exports.

For his part, banking expert Dr. Saleh Jibril said the decision would contribute to stimulating productive activity among targeted groups.

The Central Bank of Sudan had directed banks to raise financing ceilings across several sectors: agricultural (plant and animal) financing from 14–16 million Sudanese pounds; transport for production and small businesses from 13–15 million; professional and craft sectors from 10–12 million; trade and industry from 7–9 million; and service sectors from 3–5 million.

The bank also introduced new financing categories with higher ceilings to support exports and rehabilitation. These include livestock value chains for export up to 25 million Sudanese pounds, agricultural value chains for export up to 22 million, and housing rehabilitation from 10–12 million.

Additionally, the bank increased the maximum ceiling for individual or group financing for projects or activities to 30 million Sudanese pounds.

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