Microfinance Regulatory Framework

In accordance with the provisions of Articles 60 (1) and 50 (1) of the Regulation of Banking Activity Act (2003) and the 2006 Microfinance Licensing Regulations, the Central Bank of Sudan hereby issues the following Regulatory Framework for microfinance banks and finance institutions:

First; Interpretations:
Bank; means Central Bank of Sudan.

Microfinance Bank; means any company licensed to provide microfinance services, including saving, financing, internal monetary transfers and other financial services required by the economically active poor people for the running and expansion of their medium, small and micro projects enterprises.

Deposit Microfinance Institution; means an institution licensed by the Bank to accept deposits from the general public for the purposes of providing microfinance services.

Non-Deposit Microfinance Institution; means an institution registered with the Bank as an institution not authorized to accept deposits from the general public.

Microfinance Client; means a person in possession of a monthly income not less exceeding double the average monthly income of a Sudanese citizen or the total assets of the minimum wage in the Sudan, whichever is greater, and a total of productive assets, excluding land cost, not exceeding SDG 10,000, provided he is not a regular employee in any organization and not less than 18 or more 60 years of age.

Poor Person; means a person whose annual income is less than the minimum taxable income by law.

Small Project; means a project whose running needs microfinance; operations and management usually revolves around a single entrepreneur who works alone or uses a small number of close family members, at a wage that represents additional income to them, in a kind of work that does not require formal registration; management and accounting requirements are simple and flexible; and a manager who is not formally registered or licensed and has no official records for activities and revenues. Such kinds of activities involve primitive production, craftsmanship; value added treatment and commercial distribution.
Microfinance; means the facility extended to individuals or groups of borrowers whose prime income is generated from activities involving producing and selling of goods and services, provided that such an income does not exceed SDG 10,000 or as set by the Bank from time to time.

Second :(1) Regulations of Establishment/Liquidation of Deposit Microfinance Banks and Finance Institutions:     

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