Agricultural Bank of Sudan
Micro-finance Initiative
“ABSUMI”

Introduction
• To ensure conducive environment for
delivering sustainable microfinance services
apart from ABS traditional rural finance that
delivered relatively large sized loans to the
middle layers of the economic pyramid, to
overcome this disadvantages by delivering
hundreds of small sized loans to the rural
poor, who have very poor infrastructure in
interior villages in remote rural areas in
different part of Sudan.

• Therefore ABS has initiated this microfinance
program with the partnership with IFAD and
Central Bank of Sudan to reach the poor at the
bottom of the economic pyramids.

Definition
• ABSUMI, is the Agricultural Bank of Sudan
Micro-finance Initiative, Aims to revolutionize
the rural sector in Sudan, by reaching the poor
with less than 800 SDG (USD 160) loans,
covering at least one million households in 10
states in the next 10 years.

•It Provides a range of appropriate financial and
non-financial services to the poor in rural areas in
an efficient and sustainable manner, to improve
the livelihoods standards both socially and
economically. Absumi will meet the funding
needs by redeploying repayment, using the profit
margins earned and using the savings available
after holding reserves.

ABSUMI Approaches & Methodology
• Rural Concentration.
• Sustainability Focused.
• International Best Practices Oriented.
• Savings-led:- Strong thrust on rural savings.
• Client Proximity:- strong relation with clients,
• closely monitoring and supervision.
*Incentive Based.
*Efficiency and Productivity Centered.
• Fully automated MIS System.
• Targeting Zero delinquency “ No Arrears”
• Flexibility .. “ response and acceptance to new products services
needed by clients .

Stalk holders
“ Pilot Phase”
%age%age%age%age#
Institutional
Support
Technical
Assistance
PortfolioOperational
Cost
50%50%100%ABS1
50%CBS2
50%100%WSRMP
“IFAD”
3

Stalk holders
“Post Piloting”
• 1)IFAD Programs:-
• *Sustain
• *BIRDP
• 2) Future Partnership:-
• *GAP- Gum Arabic Project.. Funded by IFAD.
• *UNDP
• *WFP

ABSUMI Implementing Phases
• 1) The Pilot Phase:- It focus on stabilizing the
methodology; refining the products; strengthening
management systems & mastering the tech.
• .....know-how for delivering sustainable rural finance.
• Of 2012. completed by the end.
• 2) Replication and scale-up phase:-
• ِAccording to the successes achieved on the piloting
phase, Absumi team at ABS ,leaded by IFAD consultant
prepared a
• new Business plan for scaling –up phase.

Cont…..
• Scaling up agreement was signed bet. GOS and IFAD on
February 2013 Rome Italy. And a Subsidiary implementation
agreements bet. ABS & Ministry of finance.
• Scaling up phases started in piloting localities vertically and
horizontally..in addition to the expansion in White Nile, Sinaar
and Khartoum states.
• Consolidation Stage:- increasing outreach vertically &
horizontally ,offering new services and products to existing
clients, i.e operations at locality level become operationally
sustainable.

Collaboration with International
Funding Institutions…
• During the pilot phase Absumi engaged in strategic
partnership with Western Sudan natural resources
management program “WSRMP” funded by Ifad, Absumi
extended its financial services to communities served by
WSRMP.
• Memorandums of understanding has been signed by
SUSTAIN, & BIRDP “ IFAD projects in Sinaar, and Khartoum
States” for collaboration with Absumi during scaling-up stage.
• Interest for partnership and Understandings has been held
with Gum Arabic Project “ funded by IFAD & World Bank “ and
UNDP for extension of Absumi operations in projects areas in
Sudan.

Absumi Main features and Products
• Market surveys.
• 5 years business plan was set for pre- and piloting stage. And
a 3 years business plan for scaling –up.
• Field operation manual and office manual , used to be
updated periodically ..
• Loans Products:
• Small agric. Loans .
• Small livestock loans.
• Small enterprises loans.
• Consumption loans.
• Environmental loans.

Cont…..
• Loans terms and conditions :-
• For the first 3products, it include 6 cycles. First cycle start at
800SDG ( USD 160) and gradually increase up to 5000 SDG (USD
1000)..by rate of 60%.
• Repayment for agric. And livestock, 50% of principal repayment will
be through monthly installments and the other 50% will be through
end of term repayment.
• Small enterprise loans. will be repaid entirely through monthly
repayment.
• Consumption loans, directed to clients having outstanding loans,
determines by 20% of the amount of the cycle for the clients.
• Environmental product:- directed to be used as substitute energy
for natural resources conservation, and environmental protection.
• Loan size is 800 SDG ( USD).. For 10 months . , 10 equal installments
for 10 months.

Cont…..
• Savings Products:-
• 3 types:
• 1)compulsory savings ( upfront)..5% of the loan amount, to
be deposited prior to obtaining loan.
• 2) ongoing savings…5 SDG (USD) for the first three loan cycles
and 10 SDG from the fourth cycle onwards.
• 3) Voluntary savings… optional
• Profit Margin:-

Cont….
• Products under processing:-
• 1) Insurance.
• 2) Value chain finance.
• 3)Inventory loans.
• Collaterals:-
• Solidarity groups.
• Monitoring and close supervision system.
• Full time presence in the field by credit officers.
• Delinquency:- According to its approaches and methodology ,
the initiative is targeting zero delinquency, promoted amongst
staff members as well as within communities.

Cont.
• Absumi targets only poor rural house hold through women’s groups that
ranging from 10-20 members, each household represented by only one
member.
• Organizational structure:-
• Organized in three levels:-
• 1) Head office level:-
• *Central steering committee,
• *Central co-ordinator
• 2)Regional office level:-
• *Regional steering committee.
• *Regional manager
• *regional co-ordinator
• 3) Locality ( implementation ) level.
• The operations run through a separate units consist of unit manager +
accountant and group of field credit officers representing 80% of total unit
staff.

Acheivements
N.B : 1 USD =5.5 SDG
255No. of village reached1
1403No. of groups formed2
26951No. of current members3
24080No. of current clients4
2,954,816Amount of collected savings5
27269No. of active savers6
109Average saving size7
110,812No. of loans disbursed8
37,235,838Amount of loans disbursed9
877Average loan size10
100%Repayment %age11
0 %Portfolio in arrears12
0%Portfolio at risk13

CHALENGES
• Natural risks and Climate conditions that affect the
productive season.
• Lack of or insufficient grantees made by the beneficiaries.
• Insufficient client information.
• Limited qualified staff.
• Political interference.
• Limited financial resources.
• High admin. Expenses.
• High inflation rate.
• insecurity , disputes and conflicts.