Silatech has signed an Memorandum of Understanding with Kaaba Microfinance, a Somali microfinance institution (MFI), to promote youth enterprise and employment solutions in the Somali territories.
Sunday, February 09, 2014
Doha-based social initiative Silatech has signed a deal with Kaaba Microfinance Institution (K-MFI) in Somaliland to promote youth enterprise and employment solutions.
The memorandum of understanding paves the way for the two organisations to jointly develop a ‘Youth Enterprise Fund,’ which will provide dedicated funds and technical assistance to microfinance institutions throughout Somaliland.
The objective of the fund is to incentivise Somali MFIs to increase lending to young people.
The fund will create two youth-focused products specially designed for different socioeconomic groups. One will be tailored for the needs of low income existing youth microenterprises, while the second will be designed for university graduates looking to start their own businesses.
Also contributing to the fund is AFIF, a non-profit Qatari development programme launched by Al Asmakh Charity Foundation and a consortium of other social investors and donors.
The initiative is set to support over 3,000 Somaliland-based youth enterprises access appropriate financial service combined with business training and support over the next three years.
Dr Tarik M Yousef, CEO of Silatech, said: “Both Silatech and Kaaba Microfinance are committed to empowering Somali youth by making financial services available and helping them to start and sustain their own businesses. We believe that, together, we can help to spur income generating activities, alleviate poverty, and encourage entrepreneurship and positive change.