Micro-Finance as a Mechanism for Poverty Alleviation in the Sudan

Microfinance/micro-credit has been practiced informally in Sudan and elsewhere for a long time through conventional relations in rural agricultural communities. But the steady increase in population and competition on the meager resources has forced the human beings to think about better means. The main obstacle for a family to meet its basic needs is income poverty. Before the 20th Century, formal financial institutions were not involved in microfinance delivery (i.e. lending, savings, money transfer, insurance, etc). NGOs served as efficient organs practicing credit delivery to the needy people. Unfortunately, the efforts of NGOs have diminished due to the scarcity of resources. Donors have curbed down the donations for economic, political, social and strategic reasons. This paper will present the findings of a field survey in the Sudan; I have conducted two random samples. The first survey covered four sectors: agriculture, livestock, small-industries and service. The second survey