Revolving Funds Schemes for women’s associations within WE-RISE! Project
Technical Assistance – Development of revolving fund schemes for women associations through the provision of financial and- non financial services
Red Sea State, July 2024
The Revolving Fund is a key part of the WE-RISE! R1 financial inclusion approach designed by Microfinanza team to strengthen the EU, AICS and UN Women commitment to building a more inclusive financial and market environment for vulnerable women and youth in Sudan.
The initiative supports female Sudanese micro-entrepreneurs through the following provisions:
- Non-financial services, which include a combination of financial inclusion initiatives and tailored training modules focused on entrepreneurship.
- Financial services, which provide in-kind assets to enhance or initiate Income Generating Activities.
The loan beneficiaries are 1.485 women, including small business owners and artisans, who are affiliated with 60 women’s associations – comprising 32 established and 28 newly formed groups – situated in Port Sudan, Tokar, Sawakin, and Sallom.
The technical assistance has been awarded to the Sudanese Microfinance Institution, PASED – Port Sudan Association for Small Enterprise Development.
In the Red Sea State, this program represents a unique form of Rotating Savings and Credit Associations, enabling a group of individuals, typically engaged in Income Generating Activities, to receive in-kind loans on a rotational basis.
The process is overseen by a managing body known as the Fund Committee. Additionally, these Revolving Funds adhere to Islamic regulations by offering interest-free loans.
The formal Revolving Funds – designed to respect Islamic regulation – don’t charge any interest. The loans are specifically allocated for activities such as starting or improving IGAs.
Within the framework of Microfinanza’s multi-layer approach to Financial Inclusion for Sudan, the proposed Revolving Fund/Sunduq falls in the “Savings and Loans Mobilization” Scheme.
How works the REVOLVING FUND?
Revolving funds are innovative financial instruments designed to support Income Generating Activities. These funds operate on a rotating basis, providing loans to members of women’s associations in cycles. As one member repays their loan, the funds become available for another member. This cyclical system ensures a continuous, sustainable, and autonomous flow of capital within the association.
The initial capital for these funds is typically provided by the Italian Agency for Development Cooperation. To comply with Islamic financial regulations, revolving funds offer interest-free loans. Instead of charging interest, the fund sustains itself through administrative fees and prudent management of repayments and disbursements.
Each revolving fund is managed by a committee of association members responsible for overseeing lending policies, monitoring cash flow, and evaluating proposals for Income Generating Activities.
Download the pdf presentation.
Management Tools: Associations are equipped with essential tools and materials to manage the revolving funds effectively, ensuring transparency, accountability, and sustainability.
Non-financial Services: Training is provided for members of women’s associations.
This program is part of the Portfolio of Innovative Financial Schemes designed by Microfinanza Srl, within Result 1 of the WE-RISE! project. It is implemented by Italian Cooperation and UN Women and funded by the European Union.
About the service provider
PASED (Port Sudan Association for Small Entreprises Development) is a Sudanese MFI established in Port Sudan in 2000. Built on the legacy of the British NGO ACORD, PASED is characterised by a sound and demonstrated social mission. Its aim is to improve the livelihood conditions and future perspectives of poor and vulnerable people and to support small enterprises and women’s association members in Red Sea State through the provision of both financial and non-financial services. Women do constitute the main share of PASED’s portfolio – about 72% of the total number of clients. They strive to mainstream gender issues in microfinance programmes thanks to the provision of economic support and tailored training to their beneficiaries.
WE-RISE! Success Stories
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 Khartoum and UN Women.
The views expressed in this publication are those of the authors and do not necessarily reflect the views or policies of the EU, AICS and UN Women.
All individuals depicted in the photographs have provided their consent for the use and distribution of their images.