Laying the Foundation for Micro Enterprise Development in South Sudan

Background

The Laying the Foundation for Micro-enterprise Development in Southern Sudan, brought together 6 organizations into a partnership to implement a pilot programme of perhaps the very first MED programme in the whole of the Southern Sudan. Two partners SlovakAid and Strømme Foundation provided financial support while two others: Integra Foundation and Economic Projects Trust Fund took over the management roles while World Concern and World Relief shared in the implementation and logistical support respectively. The programme was implemented in Lietnhom, is a small rural community centre serving approximately 25,000 to 30,000 people spread out in villages in Gogrial East. In the past, Gogrial as a whole was negatively affected by the scorched earth approach used in the Sudan conflict in the 1990s. Many communities were displaced, villages razed and destruction of infrastructure, disruption of all social services ensued and economic activities stalled. After the ceasefire in 2002, communities began to settle back in Gogrial. Local hostilities ceased for most of 2003 and 2004. During that time World Relief and Strømme Foundation conducted a baseline survey on the potential for MFI interventions. It was found that there was potential and that communities have an interests to undertake such activities. Some of the key needs identified were access to credit, sources of goods, infrastructure, organization and skills training. Implementation of the programme started in September 2005 directly targeting 200 beneficiaries in Lietnhom, majority of whom engaged in small trade businesses.

Purpose/objective

The purpose of the evaluation was to identify successes, gaps, positive and negative effects of the project and provide reasoned advice on the feasibility of subsequent MED programme by the project implementers with following specific objectives
i. Ascertain relevance of the components of the project, potential for replication and sustainability
ii. Efficacy and effectiveness of implementation processes.
iii. Assess results and impact of interventions on the local community in line with planned outputs.

Methodology

Participatory approaches, methods and techniques drawn from Appreciative Inquiry and Participatory Learning & Action (PLA) informed by qualitative evaluation techniques were used for the evaluation. Interactive procedures were conducted at different levels i.e. the project office, individual clients (including non-clients), market context, and other entities providing credit in Lietnhom and at the head office, to gather adequate and relevant information and data including validating findings.
Fieldwork was carried out at Lietnhom at the office, at the community and at the trading centres. Approximately 25 interactive evaluation sessions were held with a sample of 60 respondents participating comprising key areas of project approaches and methodology, savings and loans, operating business in Lietnhom, adult education, group membership, leadership, and priorities;
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organizational and programme capacities, project and business records. Focus group interviews, one-on-one interviews, visits, talk and observe the market at work, data collection, checking of systems and records, review of documents and reports were conducted.

Key findings

i. The project has engaged the community adequately. This enabled the evaluator to elicit and obtain support from the local authorities and civil society. The community, local authority and civil society expressed satisfaction that the programme is meeting needs. However listed below are some of the primary needs cited by them:
- Lack of sources for credit and banking facilities
- Lack of skills, information and knowledge for business
- Inadequate access to infrastructure due to poor roads
- Inadequate means of transport to sources of goods
Other needs included poor and inadequate business approach, practices and organization, negative competition among traders, exploitation of small traders by the bigger ones, heavy taxation and levies by local authority when traders are on transit from sources of goods. The evaluation found that the programme addresses real needs in an appropriate size of a community for the pilot stage.
ii. The role of faith-based entities brought value added effects practically demonstrating and elaborating the practical side of faith. The message of hope and reconciliation as well as peace conveyed by the church added significant spiritual and social value. This informed the group cohesion process. It therefore appeared that the MED programme presented a new dimension and opportunity to expose communities to principles and values towards a lifestyle of peace, unity and oneness.
iii. Programme envisaged local savings mobilization at the group level and used savings for loans to support small businesses. At the time of the evaluation, the mobilization of savings was inhibited. Partly due to the way the introduction to the groups and the community was made at the start.
iv. Challenges both small and bigger businesses experience in terms of sourcing, transportation, pricing, and stocking and warehousing in the rain season are known as well as marketing and pricing of goods, products and services among the traders. The evaluation noted that the programme had limited scope to deal with these aspects.
v. Adult Education was a planned activity and there were 217 learners, among 129 are women and 88 men. It was observed that the Adult Education initiative faced a number of challenges i.e. teachers have not been trained and exposed to adult learning and teaching theory, methods, skills and techniques including basic teacher training ethics.
vi. It was found that some of the group members were able to set up business they would otherwise not have established without capital. In addition it was noted that loans increased money circulation in Lietnhom market as a trading centre. The programme also brought a sense of cohesion based on group work, adult learning together and a new spirit of hope at the community level.

Recommendations

i. Promoting Savings in Savings Groups
Savings in savings groups be invigorated and promoted to make the programme sustainable. A mechanism to make this community own the process, it suggests that a Savings and Investment sub-committee be created to works at the awareness and mobilization level for savings and identification of business opportunities for members.
ii. Shorten Loan Cycles and Increase Loan Amounts
Loan cycles be shortened and a consideration be made to increase the loan amounts.
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iii. Records and Support Software
Appropriate software be identified or be developed with the future in mind for the programme records related to the loan, encompassing monitoring of portfolio needs in a comprehensive manner.
iv. Orientation and Strengthening Staff Capacities
A strategy to orientate staff and strengthen their capacities be devised and implemented alongside the programme interventions.
v. Improving Adult Education
There is a need to improve Adult education aspects and that Adult Education Teachers be oriented on the MED Module and its key approaches.

Comments from the organisation

The model being promoted in the SUDAN MED is the Financial Service Associations (FSA)
• There is a plan to construct a building to provide banking facilities for FSA members before the end of the year.
• Business development services will be actively promoted in the coming year.
• Training, share purchase and loan activities continue.