SRDC

Sudan Rural Development Company - An Overview

SRDC at a Glance

SRDC is a private company registered under the 1925 Companies Act, established to offer financial services focusing on extending small and micro-loans to individuals and groups

Originally, SRDC was formed of two companies:

• Sudan Rural Development Company (SRDC)

• Sudan Rural Development Finance Company (SRDFC) *

* Established in 1980 for the purpose of promoting rural development, targeting areas outside the state of Khartoum.

Sudan Rural Development Company Ltd.(SRDC)

SRDC Expectations

Knowledge transfer and industry know how is certainly a benefit we all look forward to from the World Bank experts.

We look forward to collaborate and exchange ideas and information.

Adding monitoring and controlling system into our agency is something we all welcome and encourage

Designing a centralized electronic collateral registry for movable security is something we aspire to learn about and adopt into our system

We welcome any resource and or technique to increase access to credit to the private sector

Vision

SRDC strives to improve and develop lives of larger segment of our population through empowerment

SRDC focuses on making credit available to rural population and entities as an upward mobility.

World Bank Group is a great source and wealth of information that we can certainly partner with.

The Credit Information System (CIS) and Secured Transactions (STR) are of great interest to us.

Thank You

To become the leader in rural financing in Sudan by the year 2020 and to bring about comprehensive rural development on the basis of sustainability and profitability.

SRDC Achievements

SRDC succeeded to survive, throughout its history, by being able to cover all its operational expenses, and meeting its obligations towards others, whether in the form of profits or recovery of financiers’ capital.

History of SRDC Activities

Targeted Clients

Financing Methods and Collaterals

Basic Values & Principles

Mission

To enhance financial capacities of our clients in rural areas and to serve their welfare through the provision of comprehensive and advanced financial and non-financial services, and support and improvement of their profit oriented business sector.

The company targets potential clients (men and women) engaged in various categories of:

• Small Farmers

• Small Producers In Off-Farm Activities

• Professional Entrepreneurs

• Rural Women

• Youth And Graduates

• Grass-Root Organizations

• Rehabilitation And Training Entities

• Media and Publicity Cadres

Non-conventional Collaterals:

Solidarity Group, Guarantee of Associations (CBOs), Blocking of Savings, Salary Guarantee, Pawning, etc.

Conventional Collaterals:

Post-dated cheques, Chattel Mortgage, Real Estate Mortgage.

Islamic Financing:

Murabaha, Restricted Mudharaba, Musharaka, Muqawala, Muzara’a, Ijara leading to ownership, and Istisnaa.

• To achieve a balance between financial and social performance, from a developmental and economic perspective.

• To strengthen the integration of country, regional and international efforts for the advancement of rural Sudan.

• To observe the principles of commitment, excellence and transparency.

During The 1980s - 1990s :

SRDFC had financed several projects in rural Sudan, including:

• Plastic Factories

• Ice Factories

• Agricultural Warehouses

• Big Flour Mills (For Wheat And Sorghum)

• Small Grinding Mills

• Egg Trays Factories

• Poultry Farms

• Green Houses

• Dairy Farms

• Metal and Wood Furniture Works

During 2008 - 2011 :

The company established its microfinance unit in 2008 to implement its newly adopted microfinance strategy.

Financing Models

Collateral Registration Legal Framework*

• The company MIs system ability to conduct the CIASA

(for registry need )

• Human resources capacities
• Microfinance regulatory frame work not reflecting this issue
• The lack of coordination between different parties
• The technical way to register movable assets except for lands, cars
• How can we link the proposed intervention to conduct CIASA with registrar department

The company was able to increase its capital by 15% to be 3,450,000 SDG by 2012.

In 2012, SRDC opened 4 rural windows in 4 different localities.

The company provided finance for more than 12,000 clients in the various sectors, during 2012, at a total of SDG 13,000,000.

Repayment rate amounted to 97%, default rate 2%, and late payment rate 1.8%.

• Federal registry keeps track of all collateral (rights and obligations) under the law of all companies
• Federal registry returns all documentation after verification to its originator
• All registry are to be made public and available to all
• Federal Registry issues a certificate attesting to the registration

Example of issues and concerns are:

1. Number of real estate mortgage and positions are 9 projects

2. Non-conventional loans and collateral (personal etc.) 8780

* (based on 1925 legislation)