---

South Sudan, Africa

SUD01 - Micro-enterprise Loan Programme

• View report dated: May 19, 2016

• View report dated: June 13, 2017

• View report dated: March 24, 2019

---

Report Date: May 28, 2015

Update from Thomas Lubari

 

Thank you for the great work you are facilitating in South Sudan, training and supporting the poor to build some economic sustainability through the micro-loan programmes. I would wish to say that the micro-loan enterprise and the Foundations for Farming in South Sudan are both doing well. We have people who are committed to managing both programmes.

 

Recent Events

Juba

The Juba members are doing well in the programme but require very close and regular supervision. Only with regular supervision can the programme succeed. I am pleased with the members in Juba.

Here we have about 80 members including the returnees from Kahrtoum who actually are the major victims of the current economic situation facing the nation. Others in confusion without jobs or money to survive in Juba threaten to return to Khartoum which they say was better and cheaper to live in than in Juba, South Sudan.

 

Yei

The situation in Yei is a bit different because it is more rural. The beneficiaries need regular training so that they can differentiate a micro-loan from a relief grant. There is improvement in the loan programme in Yei as far as repayment is concerned. Regular supervision keeps them to the commitment of regular repayments.

We see this micro-loan programme as a response to the poor, who are many, as South Sudan is a country which has no economic policy towards the welfare of the poor except a few NGO's which are concerned with social and democracy orientated issues.

Personal Stories

Yei Micro-loan Programme

Cecilia Akape is a widow who has HIV/AIDS.  She has to feed orphans and grandchildren so her needs are numerous but unfortunately funds are little resulting in a low profit margin. However she makes regular repayments. 

Raele Akujo was abandoned by her husband. She supports four children to school. She used her loan to buy some chickens and has been able to help pay medical bills for her mother's operation. She makes regular loan repayments. 

Lilian Juan has a number of children/dependants. However her capital is small which is threatening to close down her business. She regularly makes her loan repayments. 

Charity Sunday has a restaurant business which is going well although she needs more capital. She makes regular loan repayments. 

Janet Kolo is also a regular payer.  She sells food and vegetables at the market. She would like a larger loan to enable her to buy more stock. 

 

Juba Micro-Loan Programme

This group bought a motorbike and testified how they are now able to improve on their business and provide for their families in terms of food and other needs.

 

 

 

 

Erika Luka, with four others, bought a motorbike which they have put for boda boda use. She testifies that she now stays in a good house, a two roomed semi-permanent zinc iron roofed house, graduating from a grass roofed hut. 

 

 

This group in the same manner bought a motorbike out of their loan and have started a boda boda business. Elizabeth Gadia, a member of the group, testifies that the loan has done great things especially supporting her at Bible College in Juba and also enabling her to support the family, especially her husband in regard to meeting the needs of the family. She said that because of this loan programme she had been able to push her child from the 4th grade to the 7th grade. 

Grace Juan who was abandoned by her husband can now pay for house rent and send her children to school.               

 

Ideas for the Future

I would like to suggest that in future the magnitude of the funding be increased to reach our members in Juba and Yei especially the returnees from Khartoum.

Increasing the loan size will help make better profits since costs of transport say with food commodities ends with the lorry owners taking a huge percentage of the capital leaving very little to buy the goods.

A small loan keeps the borrower/member struggling to recover the principal with no profit in the event of purchasing commodities if it involves transport, loading and offloading costs.

 

Current Issues and Challenges

The South Sudanese are living under very pitiable situations. The majority of the population do not have two meals a day, especially in the cities of the country exemplified by Juba where 90% eat once per day. While the city comprises of returnees and actual South Sudanese who never left the city during the 21 year struggle, these people are lagging behind in terms of productive living. Life has continued to be harsh to them. A few are now involved in productive living selling in the market to supplement the family income which in most cases comes every three months with just one month given making life very difficult.

With this it often affects the regularity of loan repayments especially those who sell in kiosks and food items where neighbours buy on credit waiting to repay at the end of the month which does not come to pass. 

Another major problem is inflation which has paralysed some of the businesses of the members. The prices of the commodities have risen such that they are unable to buy enough stock to bring in a good profit to make regular repayments.

South Sudan is facing economic problems. Some famillies cannot afford to pay for water daily. While salaries remain unchanged, and there is often a three month delay and then only one month is paid, some families cannot afford the day's meal.

This has affected our loan members. We have been paying them say up to US$150 per member which is now a lot less with the current situation. For example, a kilogram of beans which was SSP7 is now sold at SSP20.