From Microfinance to Financial Inclusion… Sudan Steps Towards More Inclusive and Fair Development (2)

Hiba Mahmoud Sadiq Farid
“Moving towards comprehensive financial inclusion represents a fundamental transformation that redirects the financial system to serve the citizen and the real economy — by linking finance to production and expanding the base of economic participation. This transformation is completed through the development of a national, integrated financial inclusion policy, accompanied by the establishment of a National Agency for the Development of Micro, Small, and Medium Enterprises, as the mechanism capable of turning scattered efforts into a unified state-driven project that supports production, stimulates sustainable growth, and ensures fair access to opportunities for all segments of society.”
The first article served as an introduction to the institutional transformation currently underway in Sudan — a shift from microfinance to comprehensive financial inclusion. It explained how this transition contributed to the development of a new national vision built on integrating economic and sectoral policies, and on placing the citizen — especially women, youth, and small producers — at the centre of the financial system. The first article also discussed the reasons for the limited impact of previous initiatives, which stemmed largely from the lack of coordination among monetary, fiscal, agricultural, industrial, and investment policies. This resulted in fragmented efforts that failed to achieve outcomes commensurate with the ambition or the resources invested.
The article concluded that establishing a General Directorate for Financial Inclusion represents a genuine starting point for a fairer and more inclusive economy. It rebuilds trust between the citizen and the banking system. It lays the foundation for a new phase that goes beyond partial initiatives towards a comprehensive national project grounded in a clear vision.
This second article builds on that foundation to complete the picture and answer essential questions:
What is financial inclusion? What are its indicators? Why is it now regarded as an instrument of economic justice and a driver of growth?
It also discusses the urgent need for a unified national policy for financial inclusion — one that integrates monetary and fiscal policies with telecommunications, industrial, agricultural, investment, education, and media policies.
It further provides an extensive explanation of the “missing link” within the system: the Agency for the Development of Micro, Small, and Medium Enterprises and Entrepreneurship (MSMEs), which is expected to connect finance to production and turn financial inclusion into real development.
With this perspective, the second article becomes a natural continuation of the first, presenting the conceptual and practical framework that will guide the shift from financial inclusion as an idea to financial inclusion as policy — and from policy to tangible impact on people’s lives and the national economy.
First: What is Financial Inclusion? Concept and Purpose
Financial inclusion is no longer simply the expansion of banking services. It has become a national project to rebuild the relationship between the citizen and the economy, ensuring that every individual — whether living in urban centres or remote rural areas, whether young or a woman, whether a smallholder farmer or the owner of a micro-enterprise — enjoys their natural right to a bank account, digital payment tools, fair financing, insurance, savings, and digital financial services that enable them to participate in production rather than mere consumption.
In simple terms, financial inclusion means:
Providing financial services to all people in a safe, affordable, fair, and needs-appropriate manner.
It represents a shift from a centrally managed economy to an economy driven by everyone — through active participation in production and growth. It restores the position of low-income earners as fundamental contributors, not peripheral actors.
Second: Indicators of Financial Inclusion
Levels of financial inclusion are measured by a set of international and practical indicators, the most notable of which include:
The percentage of people with bank accounts or active digital wallets, the primary indicator of individuals’ ability to participate in the formal economy.
The availability of financial services in rural and peripheral areas, since their absence creates deep developmental disparities.
The proportion of women and youth among beneficiaries, as any demographic gap is a direct indicator of economic inequality.
Levels of trust in the banking sector and financial literacy, for without trust and knowledge, digital or banking expansion is meaningless.
The prevalence of digital payments and use of electronic wallets, a sign of modernity, transparency, and a decline in the cash-based economy.
These indicators are not neutral numbers — they are a mirror of the fairness of opportunity distribution. The higher the level of financial inclusion, the lower the marginalisation, the broader the production base, and the greater the social stability.
Third: How Does Financial Inclusion Achieve Economic Justice and Growth?
1. Economic Justice
Financial inclusion redistributes opportunities by:
Enabling low-income families to access microfinance and savings.
Integrating youth and women into the economic cycle through digital wallets and productive financing.
Linking farmers and producers directly to markets without intermediaries.
Increasing the ability of young people to establish small enterprises.
Thus, society moves from a model where “opportunities are granted to the capable” to one where “opportunities are accessible to all.”
2. Economic Growth
Economic growth is not achieved by government spending alone, but through:
Expanding the base of financiers and producers via micro, small, and medium finance.
Raising productivity through digital services: payments, e-marketing, knowledge, and data.
Stimulating investment through an organised economy with less cash-based activity.
Improving market efficiency, as financial inclusion reduces costs and increases transparency.
In this way, every individual becomes part of the engine of production — not merely a consumer — which is the essence of true development.
Fourth: Why Must There Be a Comprehensive National Financial Inclusion Policy?
Without a unified policy, the central bank moves in one direction, the Ministry of Finance and sectoral ministries in another, the private sector operates with unstable incentives, small enterprises function without protection or support, and banking expansion occurs without integration with production.
A national unified policy turns financial inclusion from “scattered efforts” into a “state project” by defining clear roles for each institution: the central bank, ministries of finance, agriculture, industry, telecommunications, investment, and the ministries of general and higher education.
Ensuring harmony between financial inclusion policies and the unified economic vision prevents duplication and waste of resources, maximising the impact of financing so that it leads to real production rather than debt without return. Without such a policy, financial inclusion will remain incomplete and unable to drive development.
Fifth: The Role of Economic and Sectoral Policies in Achieving Financial Inclusion
a) Monetary Policy
Monetary policy plays a pivotal role in laying the groundwork for financial inclusion, as it creates a stable, safe financial environment that encourages individuals and institutions to engage with the banking system. Its role includes:
Ensuring financial stability by controlling inflation and reducing exchange-rate volatility.
Supporting and regulating financial innovation (FinTech).
Requiring banks to offer appropriate products such as low-cost accounts, digital accounts, microfinance, and micro-insurance.
Reducing the cost of financial services through fair pricing policies and lower digital payment fees.
b) Fiscal Policy
Fiscal policy is directly linked to the growth of small enterprises and the expansion of the production base. It must therefore align with financial inclusion objectives:
Structuring the tax system to support production.
Directing subsidies to productive sectors instead of random untargeted support.
Encouraging the shift to digital payments by reducing fees and linking government support to digital platforms.
c) Telecommunications and Digital Transformation Policy
Telecommunications form the technological infrastructure upon which financial inclusion depends:
Expanding network coverage to rural and peripheral areas.
Reducing the cost of internet services.
Supporting digital payment platforms and linking them to e-government services.
Establishing a regulatory “digital sandbox” for testing financial innovations.
d) Industrial Policy
Industrial policy aims to convert financing into real production:
Providing incentives to local producers.
Supporting agro-processing and small industries.
Promoting national products through well-designed protection policies.
e) Agricultural Policy
Agriculture is the backbone of financial inclusion in Sudan:
Linking farmers to extension services, financing, and agricultural insurance.
Building value chains and connecting them to regional markets.
Integrating digital wallets into agricultural transactions to enhance transparency.
f) Investment Policy
Without an investment-friendly environment, MSMEs and entrepreneurship cannot flourish:
Attracting capital to small and medium enterprises.
Supporting business incubators and accelerators.
Providing credit guarantees for high-risk projects.
g) Education and Media Policies (Financial Literacy)
Financial inclusion is not only about systems — it is about building people capable of using them:
Introducing financial literacy into school curricula.
Launching continuous media campaigns on financial awareness.
Training women and youth in financial technology and enterprise management.
Reinforcing trust between citizens and financial institutions.
Sixth: The Missing Link — The National Agency for MSME Development
Despite significant efforts, Sudan still lacks the institution that connects finance to production. This gap represents the missing link in the financial inclusion system.
1. Why is a National MSME Agency Needed?
Because:
Finance alone does not produce growth — it requires training, markets, and technical support.
There is no unified body coordinating among the central bank, ministries, banks, private sector, and international organisations.
Small enterprises constitute more than 70% of the economy but lack a national umbrella.
2. Functions of the Agency
It will:
Develop a national integrated policy for MSMEs.
Support entrepreneurship through training, finance, and incubation programmes.
Provide accurate data and production mapping.
Connect small producers to local and regional markets.
Develop sector-specific financial products.
Ensure that financing is linked to production, not consumption.
Coordinate monetary, fiscal, and sectoral policies.
3. Expected Benefits
Creating real job opportunities for youth.
Increasing GDP through a broader production base.
Reducing poverty through sustainable small projects.
Lowering imports and supporting local production.
Increasing exports by developing value chains.
Enhancing social stability and reducing internal and external migration.
“Establishing an MSME Development Agency is not an administrative luxury — it is a prerequisite for the success of financial inclusion. Financial inclusion without production is like ‘a body without a heart’.”
Conclusion
Financial inclusion is not a technical programme nor a procedural step added to a list of national initiatives. It is a shift in the very philosophy of development — a transition from an economy whose decisions are made far from the people to an economy whose strength comes from the participation of all.
This transformation will not be achieved without the courage to reorder state priorities and establish strong institutions capable of reconnecting finance with production, and ambition with reality.
Experience has shown that expanding financial services without production, and financing without integrated policies, and digital applications without trust and awareness — will not create development or justice.
Only a unified national financial inclusion policy, supported by an effective MSME Development Agency, can move Sudan from short-lived initiatives to deep economic transformation — where every bank account becomes an opportunity, every digital wallet becomes a production pathway, and every small enterprise becomes a building block of a more resilient and fair economy.
The path towards an inclusive economy is not easy, but it is the only path capable of rebuilding trust, restoring the dignity of labour, and opening doors of hope for millions of women, youth, and small producers. With every step Sudan takes in this direction, it moves closer to a future where development is shaped by the people and for the people — a future where the nation rises again through its living forces, not through temporary fixes or scattered initiatives.
Financial inclusion is not the end of the journey, but its beginning — a gateway to an economy in which growth arises from the grassroots, justice from participation, and hope from unified national purpose: real development that excludes no one.
Former Head of the Microfinance Unit, Central Bank of Sudan

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