Catalysing resilience in conflict-affected Sudan: the impact of the Gaith Fund
GAITH RESILIENCE FUND For SMEs, SHFs and Productive associations
How Humanitarian Blended-Finance helps de-risk and mobilize impact investments in Sudan
Kassala, Gedaref, and Red Sea State, June 2025
Microfinanza Srl is proud to share the remarkable results of the Gaith Resilience Fund, a flagship initiative under the broader WE-RISE! – Women’s Empowerment for Resilience, Inclusion, Sustainability, and Environment project. As the Technical Assistance provider appointed by AICS Addis Ababa, Microfinanza has played a key role in delivering resilience-focused support to vulnerable women and youth entrepreneurs across conflict-affected regions of Sudan.
Launched as part of the EU-funded WE-RISE! initiative, co-implemented by the Italian Agency for Development Cooperation (AICS) and UN Women, the Gaith Fund was designed to strengthen the economic empowerment of women and youth in the Kassala, Gedaref, and Red Sea States of Sudan.
At the Humanitarian–Development Nexus, the Gaith Resilience Fund integrates aid with economic support to build the resilience of vulnerable and underserved communities in fragile and conflict-affected settings. Targeting dynamic local actors – including cooperatives, associations, small and medium- sized farmers (SHFs), and micro, small, and medium enterprises (MSMEs) – the Fund prioritized initiatives with strong value propositions and measurable social or economic impact. Funding was awarded to investees’ proposals aligned with strategic value chains in agriculture, manufacturing, services, and climate-resilient sectors.
Originally planned for six months (October 2023 – March 2024), the fund was extended through April 2025 due to logistical delays caused by ongoing conflict. With a total public funding envelope of €1.4 million (€980,000 in grants and €418,450 in technical assistance), the fund was implemented by 249Startups, a Sudanese enterprise, in partnership with the Bank of Khartoum.
A Humanitarian Blended Finance Model
At the heart of the Gaith Fund’s success lies its blended finance approach, which strategically used public resources to catalyse private investment and maximise development impact.
Through a combination of matching grants, concessional loans, co-financing, and lease-to-own mechanisms, the fund created strong incentives for co-investment.
Despite significant challenges due to Sudan’s security context, the fund achieved impressive results:
- €1,034,232 in co-financing mobilised from 137 investees — far exceeding expectations.
- €285,372 in third-party private capital attracted.
- €2,718,054 total resources mobilised, resulting in a X 1.9 blended finance multiplier (every €1 of public funding generated €1.9 in total investment).
- 137 investees supported, benefitting 2,630 direct beneficiaries — over three times the original target of 800.
Empowering Vulnerable Groups
The fund awarded viable proposals with sustainable business models and positive impact, also in terms of its contribution to women, youth, and internally displaced persons (IDPs):
- 52% of investees were women-led, with women comprising 33% of direct beneficiaries — a notable outcome given the agricultural sector’s male dominance.
- 74% of investees were youth-led, demonstrating strong entrepreneurial drive among young people.
- 50% of funded interventions were led by IDPs, reflecting their resilience and economic potential.
Building Capacity for Long-Term Impact
All Gaith Fund investees benefited from extensive technical assistance (TA) and capacity-building support, delivered through:
- Online coaching sessions
- Thematic workshops
- Technical field visits, adapted to local security conditions
In total, 6,804 hours of training were delivered — 6,277 in-person and 528 online — covering a wide array of topics such as:
- Business model development
- Access to finance
- Procurement and value chain integration
- Technical skills support
Training was provided across all project phases — pre-investment, pre-funding, post-funding, and through on-site follow-up.
Advancing the Sustainable Development Goals (SDGs)
The Gaith Fund was deeply aligned with the UN Sustainable Development Goals, supporting economic resilience, food security, and gender equality.
By backing smallholder farmers, local producers, and women-led SMEs, the fund made measurable contributions to goals such as: No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), and Affordable and Clean Energy (SDG 7).
Initiatives such as climate-smart agriculture and local value chain development exemplify this alignment.
A Sustainable Exit Strategy
A defining strength of the Gaith Fund is its commitment to sustainability. Its management by 249Startups and the Bank of Khartoum ensures that the impact continues beyond the project’s formal closure. These local partners are now embedding supported ventures into local ecosystems, building collaborative networks, negotiating new credit lines and investments to ensure ongoing support.
This approach ensures that the Gaith Fund’s legacy — built on innovation, inclusion, and resilience — will endure well beyond its operational timeline.
A Lasting Legacy
Through the Gaith Fund, Microfinanza — in close collaboration with AICS and UN Women — has helped lay the groundwork for sustainable, locally driven development in Sudan. By combining technical expertise with financial innovation, the initiative has empowered vulnerable groups, stimulated private investment, and strengthened community resilience in one of the world’s most challenging environments. We are proud of the foundation we have built and remain committed to supporting Sudanese entrepreneurs as they continue to rise.
About the service provider
249Startups is a prominent entrepreneurship hub in Sudan, dedicated to promoting innovation, resilience, and growth among startups and SMEs. The organisation has a vast network that extends locally and internationally. It has strategic partnerships with leading development entities such as the ILO, UNDP, UNIDO, DGGF, RVO, AfDB, Embassy of the Kingdom of the Netherlands, Embassy of the United States, Ministry of Foreign Affairs of the Netherlands, EU, as well as strong connections with local and international NGOs, financial institutions, and major Sudanese private sector corporations. 249Startups offers a comprehensive support system for entrepreneurs, including financial backing, industry connections, and business support.
249Startups, in partnership with the Bank of Khartoum, was awarded the grant management and TA component. The management of the eligibility, screening, training, grant distribution, and M&E relies on strategic partnerships with local Financial Institutions, Education Centers, Local technical suppliers, VTEC, and Entrepreneurial Hubs.
𝗪𝗘-𝗥𝗜𝗦𝗘! is an EU-funded project with the objective of building inclusive, sustainable and resilient communities and creating an enabling environment for the economic, social and educational empowerment of women. The project is implemented by AICS Addis Abeba and UN Women. >> About the project
