Unemployment has been the major catalyst driving the poor socio-economic makeup of Somalia for decades. Thousands have been forced to leave their homes, in search of work and a better life.
With the unemployment rate soaring at a staggering 70 percent in Somali, many have fled to Europe, many more dying en route.
But a silver lining has come in to view. Dahabshiil is making a change in the lives of many unemployed youth in Somaliland capitalHergesa by financing their hopes and business dreams.
Dahabshiil, through its Microdahab program is providing Small Micro Enterprises funding to young entgrepreneurs. MicroDahab MFI is amicrofinance subsidiary of Dahabshiil Group, and bringing a much-needed windfall for the struggling nation.
Abdirahman Osman Abdi, the Dahabshiil Micro finance manager proudly reflected on the life-changing opportunity for over 4,700 young men and women who have taken advantage of the program.
From a small clientele base of only 250 youth, the program has now attracted 4700 young men and women and according to Abdi, the ripple effect has seen over 21,000 people benefiting directly or indirectly through the program.
“We allow then youth to present their business ideas to Microdahab and based on the ideas we scale the financing limit to between 5,000 dollars to 25,000 dollars per business. They come up with an idea that can be financed with minimum risks and we offer the funding,” saidAbdi.
“But the major objective is to create opportunities to the youth who are at risk of violence, migration and other social problems,” he adds.
Last December, MicroDahab MFI announced a collaboration with SolarGen Technologies to create the first ‘ijarah thumma Iqtina’ (‘lease to purchase’) sustainable energy product in Somalia.
The initiative will give consumers the experience of owning solar-powered water pumps which would otherwise be too expensive for farmers and other small business owners to afford.
Dahabshiil Group Chief Executive Officer, Abdirashid Duale says: “We introduced leasing products to transform the lives and fortunes of many communities in a socially responsible yet sustainable way. MicroDahab is bearing both the capital cost and risk of asset ownership, while our clients reap the benefits of using the water pumps, at minimal rents”.
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