By Juma John Stephen
JUBA, 20 February 2010 (Gurtong) – The SSMDF is an initiative of the Government of Southern Sudan (GOSS), the Multi Donor Trust Fund (MDTF) and the Central Bank of Sudan that aims to support the emergence of an inclusive, diverse, vibrant and sustainable microfinance sector in South Sudan.
At the signing ceremony last week, the SSMDF team leader Bosco Ole Sambu congratulated RUFI for qualifying for the funding.
He at the same time cautioned the RUFI management to ensure that the funds are invested prudently as this was the only way that the MFI could access more funding in future.
“This initiative is built upon a commitment to reduce poverty and improve the quality of life of poor households in all the states of South Sudan”, said Sambu.
“In fulfillment of its mandate, the SSMDF has signed a funding agreement with the Rural Finance Initiative (RUFI) amounting to 214,290 SDG for a period of three years. The funding is a combination of Technical Assistance (TA) and a loan facility for on-lending to RUFI clients. The TA funds will be used to strengthen RUFI’s human resource capacity, purchase equipment and improve on the MFIs internal systems”, he said.
Representing the Board of RUFI, Denis Poggo thanked SSMDF for the confidence in RUFI and added that the funds would assist the MFI strengthen their systems and serve more clients.
Also present to witness the signing was the Director of Private Sector Development Project SSMDF Board member Mary Akech Taban Mila.
RUFI is an indigenous for-profit microfinance institution which started operations in November 2008 with a mission to deliver financial services to the un-banked communities of South Sudan.
The micro-finance institution is currently serving close to 300 clients of which 54 percent are women through its sole branch located in Kajo-Keji town, Central Equatoria.
Plans are underway for the MFI to expand their services to other states in South Sudan starting with Eastern Equatoria.
The SSMDF is an apex institution that provides loans and technical assistance funds to retail providers of microfinance and related services within the microfinance sector in South Sudan.
The spectrum of potential beneficiaries range from pre-existing MFIs on the path to become viable, green fields, community level micro-finance institutions and micro-finance sector support institutions.