South Sudan, Africa

SUD01 - Micro-enterprise Loan Programme: Partnership Reports



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Report Date: May 19, 2016

Report from BHW Field Director

 

The ongoing political turmoil in South Sudan makes this a very difficult programme to visit and to adequately monitor. 


Recent Events

Loan Programmes

In all the emails that Thomas writes there is constant reference to the deteriorating political, economic and social situation in South Sudan. This is putting huge pressure on the loan programme. Inflation continues to cause a lot of stress and is putting pressure on families. 

In the last six months Thomas has visited the loan programmes in Yei and Juba four times. Each time he goes he writes a little about the visit and what he observes. Here are excerpts from his emails, not in any particular order; 

need to keep training"Yesterday I ran a half day training for the loan members in Juba. The training was to enable them to understand what a micro-loan enterprise is as compared to a gift or handout. I also dealt with profit making as emphasised in the Scriptures by our Lord Jesus Christ in the story of the talents. During the training I encouraged them to have plans for their businesses, plans that have clearly defined goals."

"During the training I encouraged them to assess their own conditions and that of their businesses and to minimise risks and cut down unproductive activities that will hinder them from obtaining their goals. We discussed how to control their business so that they may be able to meet their families' basic needs."

"I further cautioned them about the negative impact of extended families in the  culture. We discussed: the hindrance that large families cause on development; how large families can hold them in poverty since everything is eaten up by the huge number of dependants; the issues of the head of the family being weighed down with all the responsibilities."

"I cautioned them to plan towards getting food, education and shelter for their families through the profit they make. I further emphasized about the need to make repayments regularly and make savings to help them and grow the micro-loan enterprise."

Latest comments from Thomas in May 2016:

The micro-loan programme in Juba is moving on well. However, with the inflation that has affected the loan members after accessing the loan last year there is a need to boost them earlier than the usual scheduled month, July or August would be better. South Sudan is badly affected by the war in almost all parts of the country including Yei, the food basket of the nation, and people are hit with hunger. This is due to increasing poverty caused largely from them being unproductive. Both the people and the government are poverty stricken. The war has halted the government's only source of income - oil. This has been affected by both world markets and the rebels who were operating in the areas of the oil production. 

Many of the farmers were affected by displacement and other areas were discouraged to farm their lands due to the deteriorating political situation of the country for the period before the rebel leader returned home to form the government of national unity.

There is great suffering that at the moment needs humanitarian support. We can play our part only through boosting our micro-loan programme. While the intention was to empower farmers towards production using Foundations for Farming practices, this was discouraged by the rebel activities that affected the surroundings of Yei. The villages stopped all that we had earlier planned so we diverted our efforts to Uganda where the farming conditions are favourable.

Situation in Sth Sudan

The situation in South Sudan is pathetic. Prices have continued to rise and the majority of people have little to eat. Many families look unhealthy due to lack of regular meals. The situation here is quite unique as compared to other countries. 

- 90% of people are suffering and do not have enough income to be sustainable
- 1 out of 10 can afford two meals a day
- Employed persons cannot survive under the government salary structure - only those employed by NGOs can afford to live
- Peoples’ lives are worsening daily as salaries in most government departments are delayed by up to three months
- Returnees from Sudan have become victims of the situation as most of them have not been able to get jobs in South Sudan when they returned home after the country's independence
- The Ugandans, Kenyans, Eritreans and Ethiopians who have ventured to South Sudan are doing better because of their skills and entrepreneurial spirit
- South Sudanese have been badly influenced by the culture of the Arabs making them more dependent on the family head. The man is employed and more than 10 people survive on his meagre salary. 
- Other cultures encourage laziness and dependency as those from the villages flock into the cities to stay with relatives. This causes increasing poverty as all the money earned goes for food and rent, few are being productive and many families depend on loans to survive.
- Most of the returnee youth have no skills and many have resorted to drinking
- The returnee girls and women mostly had their studies in Arabic and therefore cannot get jobs in South Sudan causing more frustration
- The elderly who returned from the North fear returning to the villages to cultivate for fear that they will be poisoned. This happens among many primitive poor families.
- If there are health problems, the government hospital does not have drugs for treatment so they often have to go to private clinics which is difficult for those without money

  

Personal Stories

While there is a lot of trauma from the situation in Sth Sudan, this micro-enterprise programme provides great relief because the beneficiaries have started businesses that bring income daily. With this and the vocational training scholarships (SUD04) they are imparting skills to the youth and making a real difference.

Cities and villages are becoming populated due to urban immigration and displacement. This has not been a good solution as they get stuck in the city unable to do anything, increasing the burden on the host families. One loan member, Betty Tutua, told Thomas that she and her husband are now sleeping in a makeshift shelter where if it rains they have to roll their mattresses up and shift. This is because they had to leave their main room and shift to an outside temporary shelter to house the dependants who have arrived. Many have brought in new wives and these wives come to her for every need, none of them work or are interested in working and expect the loan beneficiary to support them. 

 

Partnership's Influence within the Community

The micro-loan programme includes returnees from Khartoum, Sudan. They have been used to a high level of income and lifestyle, now they find themselves in desperate poverty. Life continues to be hard for the returnees with much family violence and separation in families. There are many things that need to be addressed. The lack of employment and a means to earn an income is the major cause of the suffering that is occurring but the micro-loan programme is putting smiles on many faces. This project has the most positive response in reducing suffering among families.

The intervention in terms of the micro-loan enterprise and vocational scholarships is of great relief to the suffering of the people both the believers and non-believers in South Sudan.

 

Ideas for the Future

Foundations for Farming training has been planned but affected by the war. As soon as the situation improves, it will be commenced again. 

If there is anything else to be done it should be to address the real issues the people are facing, to help them eradicate poverty, hunger, trauma, family violence, HIV/AIDS, and illiteracy as the major causes of poverty. However unless there is a measure of peace and security it is impossible to deal with all of these. Many people are sleeping in the bush, especially in the affected areas further north and this instability increases the impact of poverty. 

 

Current Issues and Challenges

The micro-loan programme is under severe pressure. The South Sudan situation continues to worsen as prices rise daily with the value of the pound deteriorating greatly. It is hard to register growth in South Sudan with the increased suffering and bankruptcy of the government. The people are suffering. The micro-loan programme in Juba is now stagnant as members struggle to make a profit due to the difficulties facing the country.

The dollar exchange rate has shot from 450SSP to 1800SSP per $100. This affects the loan members who got their loan boost last year while the exchange was at 750SSP per $100.

Small loans quickly throw members out of business. Faithfulness, commitment and hard work is required of the members if they are to maintain growth.

Poor exposure to ideas, lack of flexibility and inability to change makes progress very slow.

There is a need to provide continued support including capacity building, i.e. continuous training of loan members and farmers.

There are constant robberies in Yei, especially on the roads. Air transport is the only means of safe travel. Farmers in some places have evacuated their fields to come along the road or move to the towns. 

Thomas’ most recent email: “I am troubled over this and really I am sick yesterday and today. There is need for relief food in Juba and Yei. Salaries cannot afford to sustain families. Most families eat once every two days with no water in most residential areas, only if the water trucks reach them then can they buy a drum that may only last for a day with large families.”

 

Prayer and Praise Points

1) The situation is desperate for South Sudan and South Sudanese people. There are no easy answers. Certainly there is no hope for immediate change or improvement. 
2) That Thomas is able to visit from time to time to train and encourage the loan beneficiaries. It is quite dangerous to be travelling in South Sudan at present.
3) That those in the loan programmes will be able to continue to grow their businesses despite the tough times. That God would favour them. 
4) For wisdom about how much BHW should put into this programme. 

 

Comments

This is a very difficult place in which to operate a loan programme. There are just so many pressures and risks. My gut instinct tells me that it is too risky and we should stop putting in any more funds but there are around 80 families who are part of the programme and they are in desperate circumstances.