South Sudan: 10,000 micro-businesses at risk of collapse
By Julius N. Uma
October 25, 2010 (JUBA) – Unexplained irregularities and lack of transparency in the management of donor funds intended for microfinance institutions’ support could threaten the existence of over 10,000 micro-businesses in Southern Sudan, officials said on Monday.
Vincent Olweny Oywak, the association’s chairman said at a press conference in Juba that, “despite the millions of dollars committed to the sector [microfinance], only a scant amount has been accessed by some of the member institutions.”
“These is a clear indication of the existing irregularities in funding within the industry,” he said.
Olweny, who is also the Sudan Microfinance Institution (SUMI) Chief Executive Officer (CEO) said that funds had been unfairly distributed.
He alleged that some donor funds were being directly channeled to a foreign owned micro-finance institution based in Southern Sudan rather than going to small businesses.
“The government and its partners must play leading roles in reversing this trend which is threatening to damage the reputation of the microfinance industry,” Olweny appealed.
The MASS chairman declined to name the foreign-owned institution, saying that his association was not mandated or in a position to blacklist such bodies or individuals.
Established in 2003, MASS is a fee-based membership association composed of nine microfinance institutions.
It is says it is funded by shareholders and international organizations.
About 43,000 micro-entrepreneurs and economically active poor people are members of MASS, of whom 60 percent are women.
“As members of this industry, we strongly believe that through microfinance intervention, the poor and low income earners can be financially empowered to smoothen out their cash flows,” Olweny said.
Members from the association said that irregularities had caused widespread misconceptions about microfinance.
The nomadic state of existing markets and limited products are key challenges to the microfinance industry, Olweny said.
MASS officials appealed to government to allocate a certain percentage of its revenue for supporting microfinance institutions to avoid over-reliance on donor funding.
Duku Olwer, a client of the Sudan Microfinance Institution (SUMI) expressed discontent over the way micro-finance was run in the south.
He urged the Government of Southern Sudan to play a central role in sorting the industry to prevent malpractices could permanently destroy microfinance institutions.
He said that loans he obtained from the microfinance body had enabled him to earn money to send his children to school. But now he said, the future of his business hangs in balance due to lack of funds.
Another client, who asked to remain anonymous expressed concern over the disparities existing between the government and microfinance institutions, saying immediate interventions are required to redeem the sector from the verge of collapse.
He appealed to the various microfinance institutions to not only target educated people, but also involve less educated people.
(ST)
Anyang
South Sudan: 10,000 micro-businesses at risk of collapse
As a people of “Southern Sudan”, nomatter where we are?,who we are?,where we lives or what we got?, all of us,start with Salva Kiir himself and to the very ordinary citizen like myself,need to embrace the ways Western and Arabs world do or does their business to become a successful nation on earth if our young nation is really serious of fulfilling our founding fathers’s aspiration of future world basket nation, and also we should keenly fight hard,and harder enough to do a way with corruption base on tribal line as well as nepotism and greed inorder to successfully overcome the present status quo.
okucu pa lotinokwan
South Sudan: 10,000 micro-businesses at risk of collapse
Please,please,for those who took loan fron this institution in good faith return it in good faith,because it is apart of development for our community and the small nation to come.Otherwise this is asign which can shown that we are not yet capable in ruling ourselves as other countries who donated this money can see in.
Poor management of Nile Comercial Bank make it to collapse in 2008.Which was a shame to everybody please response positively if you are one among this virus.
OKUCU PA LOTINOKWAN