Impact of Microcredit on Poverty Alleviation in Rural Sudan

Microcredit is often considered as efficient tool to alleviating poverty in developing countries. In Sudan, the government has been pursuing a microcredit policy that seeks to provide essential business that improves the livelihood of poor people, and consequently eradicate their poverty. Investing in agricultural activities through microcredit services will continue to be seen as a potential option for improving the income and food security of rural households in North Kordofan State of Sudan. This book investigates empirically the impact of microcredit on poverty alleviation in rural dryland of Sudan, taking North Kordofan as case in point. The study focuses on three localities with two farm household categories, which were selected through a multi-stage stratified random sampling technique. A combination of different econometric tools and dynamic non-separable farm household model approach were applied to analyze microcredit policy scenarios. The book presents empirical analysis of the factors motivating credit constrained conditions and the impact of credit provided on farm profitability.The book also quantitatively investigated the interaction effect between loan utilization and repayment behaviour of farm households. The results of the study have revealed that households who have access to credit were better-off in terms of moveable assets and investment activities compared to those who do not. Although credit users reported a rapid increase in welfare levels and market purchases over the three-year period, their level of market integration was less than might have been expected. The book finally suggested some important policy recommendations to enhance development of microcredit sector in the area of financial constraints, marketing and investments.