The AECF (Africa Enterprise Challenge Fund) has today launched the Sudan SME Catalyser with an initial €12.5 million from the German Federal Ministry of Economic Cooperation and Development (BMZ) via KfW.
The programme seeks to support SMEs in Sudan that are relocating from areas of conflict to more stable parts of the country. SMEs form a dynamic and independent part of the economy in Sudan, yet many have suffered losses of capital, markets and sources of supplies. Amid these challenges, SMEs have demonstrated to be a remarkable source of resilience. They offer the potential to address the current crisis through improving the availability of much needed products and services, as well as providing income and employment to low-income households.
This programme will provide access to grant finance as well as business advisory support to help companies re-establish production and processing activities, re-tool their business processes and find new markets and new sources of supply. Funding will be available to companies in the areas of agriculture and renewable energy technologies and thus contribute to basic service delivery for the people of Sudan.
Using a challenge fund model, independent companies will be identified through a competitive process that provides fair and equal access to available funding for investment and technical assistance. A particular focus will be on innovative business ideas with demonstrable social impact.
Sudan remains in a devastating conflict that has destroyed large areas of the country, particularly around the capital Khartoum, and led to forced migration of more than 8 million people both within the country and outside. More than 25 million people are struggling with soaring rates of hunger and malnutrition. Whilst all of Sudan has been impacted by the ongoing fighting, some areas remain outside of direct conflict and are now places of both refuge and business for the Sudanese people. Companies and entrepreneurs have moved to these new, safer locations and are seeking to re-establish their business operations.
Victoria Sabula, CEO of the AECF, said, “The role of the private sector in conflict situations has not yet been fully recognized by humanitarian responses, but they have crucial ability to provide goods and services to difficult places. They have a unique understanding of local situations, connections to a wide range of actors and ways of getting into markets that foreign agencies cannot. We see the private sector as an important part of not only complementing the humanitarian response but building the basis for sustainable economic development. We thank the German Federal Government for supporting this innovative approach at this critical time.”