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Germany to support Somali SMEs

Storyline:Business, National News

GOOBJOOG NEWS | MOGADISHU: Germany has entered a new deal with the Federal Government of Somalia that will see Somali SMEs benefit from a grant of 19.5 million USD.

The agreement was signed between the Somali government and Gagaara Company Limited in the presence of representatives from the Somali Ministry of Finance and the German Embassy.

The purpose of the agreement according to the officials is to create and sustain jobs through improved access to financial services.

“The project aims to contribute to the formalization and modernization of the financial service sector in Somalia through provision of loans to SMEs by financial institutions on the basis of transparent, objective and economic criteria.”

With the German funding, Gargaara will be able to expand the number of eligible sectors, adding education, health, hospitality and travel to sectors such as renewable energy, agriculture, fisheries, agricultural processing and small-scale manufacturing, which were already established with support by the World Bank. With this broad coverage, underserved Somali micro, small and medium-sized companies shall be strengthened and encouraged to create jobs and improve their services and products.

The project is expected to run from mid-2023 to 2027.