Gargaara Briefs Minister of Finance on Catalysing MSME Growth

Mogadishu, Somalia (Date) – Somalia’s Minister of Finance, H.E. Bihi Egah, met with the leadership of Gargaara Finance Limited to discuss the development finance institution’s trailblazing efforts to expand access to capital for micro, small and medium enterprises (MSMEs) nationwide.

The meeting allowed Gargaara’s management, led by CEO Sulieman A. Dualeh, to provide the Minister with updates on the significant milestones achieved since its establishment in 2019 as the country’s first apex financing facility exclusively focused on the MSME sector. Through its innovative wholesale lending model, Gargaara has rapidly emerged as a catalyst for financial inclusion and private sector growth across key economic sectors.

Gargaara has already disbursed over $3.7 million to entrepreneurs and small businesses through its network of participating financial institutions (PFIs). With ambitious targets to grow its lending portfolio to $20 million by 2024, Gargaara is well on its way to unleashing the entrepreneurial potential and job creation capacity of Somalia’s dynamic MSME ecosystem.

The Minister commended Gargaara’s impact in channeling financing to traditionally underserved segments like women-owned enterprises, which received 15% of total lending in 2020-2021. He lauded Gargaara’s commitment to increasing this share to at least 40% to further promote gender inclusion and economic empowerment.

“Gargaara is pioneering new pathways for our nation’s entrepreneurs to access the capital, skills and financial literacy training they need to start and grow thriving businesses,” stated Minister Egah. “This is absolutely vital for catalyzing broad-based job creation, innovation and economic development across all regions.”

CEO Dualeh expressed his gratitude for the unwavering support of the Ministry of Finance and Federal Government in establishing Gargaara as a key driver of financial sector reform. “Our institution is laying the foundations for a more inclusive, dynamic and prosperous private sector in Somalia. With the guidance of our government partners, we will continue expanding our lending and advisory services to unlock the full potential of MSMEs as engines of growth.”

The constructive dialogue reaffirmed Gargaara’s pivotal role in the government’s strategic vision for economic development through its comprehensive approach combining financing, capacity building for financial institutions, entrepreneurship promotion and investment facilitation. As Somalia’s pioneering MSME financier, Gargaara is well-positioned to catalyze inclusive growth and shared prosperity for all Somalis in the years ahead.

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