Mogadishu, Somalia (May 10, 2022) – Gargaara Finance Limited’s management team met today with the World Bank’s Implementation Support Mission to review progress and align on strategic priorities for expanding access to finance for micro, small and medium enterprises (MSMEs) across Somalia.
The discussions covered Gargaara’s efforts and achievements to date in disbursing funds through partner financial institutions to entrepreneurs and businesses in key sectors like agriculture, livestock, fisheries and renewable energy. As an apex development finance institution, Gargaara has already provided over $3.7 million in financing to MSMEs since launching operations in 2020.
A key focus was accelerating the onboarding of additional participating financial intermediaries (PFIs) to broaden Gargaara’s reach and impact. Three new PFIs are currently undergoing due diligence, which would expand Gargaara’s network nationwide. Plans were discussed to rapidly scale up overall lending to a target of $20 million by 2024.
The World Bank mission commended Gargaara’s progress so far in catalyzing lending to underserved but economically vital segments like women-owned businesses. Looking ahead, there was agreement on the importance of further enhancing gender inclusion by increasing financing for female entrepreneurs to at least 40% in the coming years.
Another priority area is strengthening technical assistance and advisory services to build capacity of PFIs and MSMEs. This includes training for PFIs on areas like lending practices, risk management and governance. In parallel, Gargaara aims to provide business development support to MSMEs to improve bankability and financial literacy.
Sulieman A. Dualeh, Gargaara’s CEO, emphasized the institution’s commitment to its mandate of promoting financial sector development and inclusive economic growth across Somalia. “We are grateful for the World Bank’s partnership and support. With their guidance, we will intensify efforts to catalyze entrepreneurship, investment and job creation by ensuring MSMEs have access to the financing and skills they need to thrive.”
The constructive meetings paved the way for continued close collaboration between Gargaara and the World Bank towards the shared vision of an empowered, dynamic MSME sector driving broad-based prosperity for all Somalis.