Impacts of Formal Financing on the Development of the Sudanese Agricultural Sector (in Arabic)

31 Pages Posted: 3 Aug 2011 Last revised: 20 Jan 2015

See all articles by Issam A.W. Mohamed

Issam A.W. Mohamed

Al-Neelain University - Department of Economics

Kamal M. Osman

Al-Neelain University - Department of Economics

Date Written: August 2, 2011

Abstract

The agricultural sector of Sudan is faced by many problems. In the irrigated schemes, the government who officially owns most of them there are entrenched managerial problems that brewed for more than six decades. Moreover, the privatization policies of those schemes provoked many outcries and protests. Large schemes like Gezira have collapsed, this year 2011, only 10% of its over one million hectares were cultivated. The rainfed farming is not different with lack of machinaries, shortages of available labor and high priced agricultural inputs, it is not expected to fare better than the irrigated schemes. However, even if those problems were solved the main chronic impediment remains which is appropriate financing, e.g., lower interest rates, availability and accessibility remain unsolved. The paper discusses the formal financing issues for the agriculture in Sudan. Empirical analysis is carried out which showed that there are problems in the previously described parameters, interest rates, availability and accessibility. The first, even with Islamic financing forms showed with high interest rates. The second, availability showed that with the available institutions there are problems due to available banking branches and collateral availability. Accessibility remains a difficult task because only large-size landholders have the privilege.

Note: Downloadable document is in Arabic.

Keywords: Sudan, Agricultural Development, Productivity, Credit, Financing, Islamic Finance

JEL Classification: N17, N5, N50, N57, E5, E6, E50, E51, E52, E53, E57, E59, E60, E69

Suggested Citation

Mohamed, Issam A.W. and Osman, Kamal M., Impacts of Formal Financing on the Development of the Sudanese Agricultural Sector (in Arabic) (August 2, 2011). Available at SSRN: https://ssrn.com/abstract=1903987 or http://dx.doi.org/10.2139/ssrn.1903987

Issam A.W. Mohamed (Contact Author)

Al-Neelain University - Department of Economics ( email )

P.O. Box 12910-11111
Khartoum, Khartoum 11111
Sudan
249122548254 (Phone)

HOME PAGE: http://works.bepress.com/issamawmohamed/

Kamal M. Osman

Al-Neelain University - Department of Economics ( email )

P.O. Box 12910-11111
Khartoum, 11111
Sudan

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