The town of El-Obeid in North Kordofan, located about eight hours’ drive southwest of Sudan’s capital, Khartoum, lies in a region where the harsh desert climate of the north gives way to the more humid conditions of the south. This area, dotted with trees and seasonal rivers, presents a landscape of plains, sand dunes, and small hills. Despite its natural beauty, the region faces harsh climatic conditions and increasingly unpredictable rainfall patterns, compounded by decades of civil unrest and displacement.
Near East Foundation (NEF) has been active in this area since 2010, establishing and supporting cooperatives largely made up of women who produce non-timber forest products (NTFPs). These products, which include gum arabic, honey, and desert dates, are crucial for local communities. Unlike cash crops, these products are more resilient to climate fluctuations, pests, and extreme weather, providing a critical fallback during crises.
Near East Foundation
NTFPs not only offer a lifeline in times of need but also contribute to environmental sustainability. Trees and shrubs used for the products, like the Acacia senegal for gum arabic, help stabilise dunes and maintain soil fertility. However, producers, especially women, face severe challenges, including poverty, displacement, and restrictive gender norms. In North Kordofan, for example, 60% of the producers lived below the poverty line in 2022, with many more likely affected by the civil war that erupted in 2023.
Women, who make up over 70% of gum arabic producers in North Kordofan, are particularly disadvantaged. They earn significantly less than their male counterparts and face constraints in accessing resources, credit, and decision-making power. The credit available often comes with high interest rates, further exacerbating their financial struggles.
Inclusive access to finance
NEF’s approach to addressing these challenges involves providing inclusive access to finance through community-based credit (CBC) systems. These systems leverage local networks to provide micro-finance solutions. By 2022, NEF was working with 13 cooperatives in North Kordofan, serving about 3,000 cooperative and community members, 75% of whom were women.
The support from NEF extends beyond financing. They offer technical guidance on sustainable harvesting practices and assist in negotiating with buyers, helping cooperatives improve product quality and achieve better prices. This comprehensive support has enabled significant progress. Participants’ annual revenue increased by about 44% between 2013-2016 and by about 17% between 2016-2018, thanks to improved product quality and market access. Case studies conducted between 2020 and 2022 confirm similar benefits despite significant external shocks, including consistent hyperinflation, a sharp decline in the value of currency, and the COVID-19 pandemic’s impact on markets, products, and mobility.
Remarkably, these CBC funds have maintained a repayment rate of over 85%, with many cooperatives growing their funds over time. This success presents an opportunity to scale these efforts by attracting diverse funding sources, including private investment from impact investors seeking both financial and social returns.
Re-establishing supply chains
Despite the outbreak of civil war in April 2023, the cooperatives have continued to operate and even expand their activities. By May 2024, the number of loans per association increased to 80 from about 50 two years earlier. This resilience, facilitated by the rapid adoption of digital banking, is a testament to the strength and adaptability of these community-driven initiatives.
“The war has changed everything. Many companies have either disappeared, hibernated, or transformed. The local communities have taken it upon themselves to transport supplies through difficult routes to Port Sudan. The cooperatives have been able to aggregate the produce and do some initial processing, storage, and transporting through Port Sudan,” says Rabih Yazbeck of NEF. These cooperatives are not only surviving but also playing a vital role in re-establishing supply chains in the war-torn country.
NEF’s innovative approach to financing and support for NTFP producers in Sudan demonstrates the power of community-based solutions in building resilience against climate and conflict challenges. By empowering local communities, particularly women, and fostering sustainable practices, NEF is paving the way for a more stable and prosperous future in Sudan and potentially across the continent.
Near East Foundation
About GRP’s role
GRP has been working with Near East Foundation since 2022 under the Innovative Finance for Resilience programme to support their work with NTFP producers. Learn more about the Innovative Finance for Resilience programme here.