Somaliland: Silatech and Kaaba Microfinance Partner to Support Youth Enterprise
Monday, February 10, 2014
Somalilandsun – Silatech has signed a Memorandum of Understanding with Kaaba Microfinance Institution (K-MFI), based in Somaliland, to promote youth enterprise and employment solutions. The agreement paves the way for the two organizations to jointly develop a Youth Enterprise Fund, which will provide dedicated funds and technical assistance to microfinance institutions throughout Somaliland. The objective of the Fund is to incentivize Somali MFIs to increase lending to young people.
The Youth Enterprise Fund will create two youth-focused products specially designed for different socioeconomic groups. One will be tailored for the needs of low income existing youth microenterprises, while the second will be designed for university graduates looking to start their own businesses. Both are shari’a compliant microfinance products. Also contributing to the Youth Enterprise Fund is AFIF, a non-profit Qatari development program launched by Al Asmakh Charity Foundation and a consortium of other social investors and donors.
The initiative is set to support over 3,000 Somaliland based youth enterprises access appropriate financial service combined with business training and support over the next 3 years. It is expected that these enterprises will sustain or create over 5,000 new jobs as they grow.