Access to Credit for Women in South Sudan Alwaleed Alatabani, Senior Financial Sector Specialist (AFTFE)

 Great Opportunities in South Sudan  Natural resource abundance: water, fertile land, natural resources  Strategic location,  But … No History of Private Sector Before Conflict  Limited indigenous private sector before conflict  Private sector activity is focused on trade, by traders from other neighboring countries,  … Huge Investment Needs  … Insufficient Investment Climate to attract investment  Insufficient legal and regulatory framework to attract investors and protect property rights  Low level of skills & weak economic institutions (e.g. Markets)  Capital base destroyed by conflict  Few public institutions to support markets and a vibrant private sector  Dutch disease – Impact of oil revenues on trade, competitiveness, labor markets, and exchange rate  … Some emerging risks  Role of state  Taxes and public sector volatility  Dutch disease  Risk of Conflict

 High cost of doing business  Infrastructure: Electricity, telecommunications and transport escalates transactions costs  Limited Access to Finance and High Costs of Finance  Access to finance limited to microfinance  Lack of collateral, No clear system for land titling and registry  Lack of financial infrastructure to support financial intermediation  Lack of culture of repayment after many years of war  The lack of market supporting institutions  Lack of vocational and entrepreneurial skills

Enabling Environment Enabling Environment Access to Finance Access to Finance Capacity Land Inputs Market Devel. Southern Sudanese Entrepreneurs Southern Sudanese Entrepreneurs UNIDO –Industry identific. Institutions (chambers), BDS Policy Development/ Entrepreneurship Development/ Public-Private Dialogue/ Monitoring & Evaluation Wholesale Market, Assembly markets, MIS Microfinance Apex Competitive funding of MFIs Capacity Building FIAS program: Legal development Institutional Development Capacity building

 Women in Southern Sudan constitute over 60 percent of the work force in the private sector and are central to productive enterprise.  Improving Access to Finance in a post-conflict reconstruction period can alleviate a key constraint to growth.  Enhancing access to finance – Long term objectives:  Improve the policy, legal and regulatory framework  Including institutions to improve information sharing in the financial sector as well as property rights;  Focus on microfinance (including deposit taking) and leasing to facilitate more immediate needs of SMEs;  Focus on strengthening skills and capacity in the long-term.

 Gender Action Plan support for two key sub- components of the PSD project for Southern Sudan for a total of US$1 million. Currently under implementation.  The Business Plan Competition ($500,000): awardees receive a grant of $20,000 for a business start-up. Grant is used as collateral for a loan from a commercial bank. Upon repayment, awardees receive the collateral.  Micro loans ($500,000) channeled through the Microfinance Apex institution for smaller entrepreneurs. Amounts range from $500 - $2000, depending on nature of business and credit history. Both sub-components provide loans vs. grants

Objectives: Access to Finance:  To provide Access to Finance to 25 budding women entrepreneurs for small projects, $20,000 each.  Providing microloans for women in Southern Sudan Expected Outcomes  Building Business Development Skills such as book- keeping, inventory management, cashflow management and marketing,  Learn how to interface with formal institutions,  Develop a culture of repayment

“This was a most inspiring event last Tuesday Sept 1 here in Juba. Awards of funds (US$ 20K each) to 45 Southern Sudanese young emerging entrepreneurs (including 25 women), on the basis of a competition that attracted 1600 entries with business plan ideas, for setting up new businesses., under our Private Sector Development Project. It was a very special event, Kudos to the PSD and GAP teams.” Laurence Clarke, Manager, South Sudan Program.