This paper investigates the impact of banking finance on gum Arabic producers in terms of Gum production, income generation and standard of living in North Kordofan. Design and Methodology: Data were collected via questionnaires and focus group discussion, where 65 gum Arabic producers were purposively interviewed. Data were analysed using descriptive statistics, and T test and linear regression, Statistical Packages for Social Sciences (SPSS) and Excel were applied to the analysis.
The results showed that finance has a positive correlation (P >0.005) on gum production, producers income and producers’ standard of living. However, 26% of respondents used finance in terms of buying recommended production tools, 26% on food items, and 63% on labour. All producers (100%) mentioned that the main constraints of banking finance were insufficient, complicated, not delivered on time and the need for a guarantee. In contrast, all respondents stated that the main other services needed for gum producers at the production site are water points, health services, education, storage facilities and training. The study concluded that the banking finance has made a positive contribution towards gum arabic production.
Banking finance is still limited although it has contributed positively in gum Arabic production, producers’ income and standard of living. Not all producers have access to finance.
The study recommended that banking finance should be sufficient and delivered on time.
Khalifa, A. E. S. O., Mohammed, M. A. A., Eltahir, M. E. S., Ibrahim, I. E. and Osman, F. I. M. (2026): Impact of Banking Finance on Gum Arabic Producers in North Kordofan, Sudan. International Journal of Gum Arabic (IJGA), Vol. 2, Nos. 1/2, pp. 105-121.
