Enhancing Financial Access for Somali Women Entrepreneurs Through…

Rima Abdukadir Ahmed, a Somali entrepreneur, secured a loan to mechanize her sesame oil production, highlighting the financial challenges women face in Somalia. Despite initiatives to improve access to finance like Gargaara, women-owned businesses still struggle with low loan values. Continued efforts are necessary to support female entrepreneurs and promote economic growth.

In Mogadishu, Rima Abdukadir Ahmed transformed her traditional sesame oil business by mechanizing the grinding process and obtaining a much-needed loan from Premier Bank. The financing allowed her not only to increase production but also to store greater quantities of sesame seeds to meet year-round demand. Given Somalia’s challenging financial landscape, women like Rima face substantial barriers in accessing capital, with only 21% of women-owned businesses able to utilize lending facilities. However, initiatives like the Gargaara Company seek to change that by providing necessary funding to Micro, Small, and Medium Enterprises (MSMEs). Despite the improvements, a significant gap remains in the loan values allocated to women, highlighting the need for ongoing support and targeted financial solutions. Gargaara is committed to expanding its impact and access to finance for women-led enterprises, which is essential for nurturing economic growth and employment in Somalia.

Access to finance plays a pivotal role in empowering women entrepreneurs in Somalia. The country’s financial sector is fraught with challenges, particularly for Micro, Small, and Medium Enterprises (MSMEs). Women often find themselves disproportionately affected by these difficulties, with limited opportunities to secure necessary funding. The Gargaara Company, established by the Somali federal government with support from the World Bank, aims to bolster lending to underserved businesses. It has emerged as a crucial entity in distributing financial resources to various sectors, including those led by women. However, the disparity in loan amounts highlights a need for increased targeted assistance geared towards women.

The journey towards financial inclusivity for Somali women entrepreneurs is ongoing. While steps have been made to improve access to financial resources through initiatives like Gargaara, the loan value disparity remains a significant concern. It is imperative to enhance support mechanisms and expand financial offerings that cater specifically to women-led enterprises. By addressing these gaps, Somalia can unlock the full potential of its female entrepreneurs, driving economic growth and empowerment.

Original Source: www.worldbank.org