Finance for Inclusive Growth in Somalia (FIG – Somalia)
The Financial for Inclusive Growth in Somalia Programme (FIG-Somalia) is a €4.5 million EU-Funded pilot programme component under the European Union’s Inclusive Local and Economic Development (ILED) programme, whose objective is to contribute to stability in Somalia by extending state authority and services, promoting local reconciliation and peacebuilding, creating inclusive economic opportunities and protecting the most vulnerable.
Through the programme, two selected financial institutions in Somalia will access a € 2 million revolving loan fund to provide micro loans to women, youth and producers group (farmers, fishermen, pastoralists and auxiliary small businesses along the value chains). The financial institutions will also have access to a Partial Guarantee Facility to complement the revolving loan fund and mitigate the risk of non-repayment for loans advanced, and technical assistance to their build their institutional capacity and that of end beneficiaries.
Up to 8,000 households will benefit through the loans and about 60 staff at the two financial institutions, will receive training build their capacity to provide appropriate tailored financial services to the wider rural communities in urban and rural centres in Somalia with the aim of improving the beneficiaries overall bankability and enterprise management.
The objective of FIG Somalia is to revitalize and expand the local economy with a focus on livelihood enhancement, job creation and broad-based inclusive growth for Somali women, youth and producer groups.
FIG-Somalia Specific objectives are:
Facilitate access to finance for women and youth in business and producers both at the financial institution level and enterprise level
Enhance access to relevant business development services mainly through training and business mentorship.
Propose a product or service that meets or exceeds the proposed energy access tiers
Build the capacity of the partner financial institutions to provide appropriate financial services for a wider scope of customers, including those living in urban, rural and decentralized areas in Somalia.
Design and offer appropriate and sustainable products and services to clients through Somali Financial Institutions and ensure targeted clients are growing and becoming more bankable
Women enterprises: Access to credit and business development support is critical in spurring growth for women and the private sector in general. The programme targets to have at least 40% of its end clients as women.
Youth enterprises: With widespread unemployment amongst youth in Somalia, provision of access to credit creates opportunities for youth enterprises to thrive. The programme targets to have at least 30% of its end clients as a youth.
Producers: Agriculture, livestock and fishing sectors are central to Somalia’s economic development and poverty reduction. Supporting producer groups access to finance not only strengthens the basis for the country’s sustained economic development but helps cement peace and security, alleviate poverty and malnutrition in both rural and urban areas.