Status Update - July 3, 2014

South Sudan continues to experience conflict and political instability. Finance South Sudan Limited is not currently disbursing loans, or raising funds on the Kiva platform. Kiva is in touch with the management team and working to determine a feasible repayment schedule. We will provide updates as they're available. 

Status Update - January 17, 2014

South Sudan experienced violence and political instability in December 2013. The senior management team for Finance South Sudan Limited left the country and it is still uncertain when conditions will be stable enough to allow them to return. Finance South Sudan Limited is now operating in a very limited capacity and lenders may notice an increase in delinquency until the situation improves.


Status Update - October 23, 2012

Due to the rapid devaluation of the Sudanese Pound, the system Kiva used to calculate delinquency did not fully represent this partner's delinquency rate. This system has now been changed and accurately reflects Finance Sudan Limited’s delinquency rate on Kiva at 2.47%.

Partner Description:

Finance Sudan Limited is a microfinance institution operating in South Sudan. Established in 2006 by the American Refugee Committee, it was incorporated in 2009 after Micro Africa Ltd. -- another Kenyan MFI -- decided to partner with ARC to provide microfinance services to the people of South Sudan. To keep the company growing sustainably, ARC sold off its stake in 2011, paving the way for the creation of Finance Sudan Limited as an independent entity.

The mission of Finance Sudan Limited is to contribute to the economic rebuilding and stabilization of South Sudan by providing quality financial services to low-income borrowers through sustainable microfinance with a national scope. The targeted group is comprised of small-scale traders, produce dealers and salaried workers.

Finance Sudan Limited currently has 7 branches (Corporate, Munuki, Wau, Malakal, Yambio, Yei and Nimule), which are spread throughout 5 states (Central Equatorial, Eastern Equatorial, Western Equatorial, Western Bahr el Ghazel and Upper Nile) out of the country’s 10 states.

The institution primarily offers three loan products:

- Group loans (FSSL Group Loan & Nuswan/Women Development Loans) that are administered through the group guarantee system.

- SME loans offered to small and medium-scale businesses with formal collateral.

- Salary loans offered to employees at reputable organizations operating in South Sudan.

Finance Sudan Limited intends to become a formal deposit-taking institution and begin offering both savings and money transfer services.

A note about Finance South Sudan Limited's portfolio yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

 

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

 

We seek to support loans that don’t impose an unjustifiable cost burden on hardworking borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale.

 

Factors that drive up the costs that this partner organization charges its borrowers include:

 

• They operate in South Sudan, which is a conflict-affected region. This can greatly increase the cost of safely delivering financial services to borrowers.
     • They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.

     • They operate in an area with a limited or poorly functioning banking system. This makes it difficult to access funding locally, and makes it more challenging to send and receive payments on loans from outside the country.

     • They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.

     • They’re based in an area with a high cost of living and doing business. This is oftendue to the high demand and low supply of adequate housing and goods.

     • They’re a small company or organization that hasn’t yet achieved the scale and efficiency necessary to reach sustainability and reduce pricing, but the impact of their services merits the opportunity to prove their business model.

     • They operate in a market where microfinance is highly underdeveloped. This means that finding, training and maintaining qualified staff is more expensive and difficult than in more-developed markets.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Oct 26, 2011 Oct 12, 2005
Total Loans $476,575 $625,499,400
Amount of raised Inactive loans $0 $397,125
Number of raised Inactive loans 0 334
Amount of Paying Back Loans $85,250 $120,621,050
Number of Paying Back Loans 118 132,551
Amount of Ended Loans $391,325 $504,481,225
Number of Ended Loans 556 634,883
Delinquency Rate 100.00% 4.66%
Amount in Arrears $39,539 $3,619,396
Outstanding Portfolio $39,539 $77,690,214
Number of loanDelinquent 118 17,035
Default Rate 5.47% 1.11%
Amount of Ended Loans Defaulted $21,421 $5,607,074
Amount of Ended Loans $391,325 $504,481,225
Number of Ended Loans Defaulted 53 17,325
Currency Exchange Loss Rate 4.48% 0.11%
Amount of Currency Exchange Loss $21,362 $679,982
Refund Rate 0.56% 0.73%
Amount of Refunded Loans $2,675 $4,592,300
Number of Refunded Loans 3 5,127

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 52.64% 74.18%
Average Loan Size $708 $418
Average Individual Loan Size $708 $654
Average Group Loan Size $0 $1,837
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $1,400 $3,409
Average Loan Size / GDP per capita (PPP) 50.56% 12.27%
Average Time to Fund a Loan 1.8 days 5.8 days
Average Dollars Raised Per Day Per Loan $393.24 $72.17
  Average Loan Term 6.01 months 10.52 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 145 313,681
  Journaling Rate 20.92% 42.14%
  Average Number of Comments Per Journal 0.00 0.07
  Average Number of Recommendations Per Journal 0.01 1.77

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 69% PY 39.00% PY 33.35% PY
  Profitability (return on assets) -18.9% 8.4% -1.49%
  Average Loan Size (% of per capita income) 28.80% 47.00% 38.01%

Country Fast Facts

Field Partner Staff

Betty Abalo
Festo Amunda Abraham
George Kiwuuwa
Pantaleon Lutta
Felix Ndegwa
Beth Nyaga
Robert Oketi