“Poverty reduction in Somalia must be private sector-led. We have
relied on traditional aid since the early 1990s, and handouts have not
been a sustainable method to reduce poverty,” said Sahal. “I believe
that access to capital is crucial for both job creation and dignified
poverty reduction.”
Asli Health Care Company, based in Hargeisa,
has also benefited from the SBCF. The company’s manager, Nemo Yusuf,
founded the company after she and her partners studied imports to
Somaliland. Through a market study, she and her partners studies the
viability of producing beauty products and creating jobs in the process.
“We
observed an excess of imports of personal healthcare and beauty
products from China and the Middle East, most of which could be produced
domestically,” she said. “Our study confirmed that we could produce and
sell shampoo, soaps and detergents competitively,” she said. “A reality
that is too familiar with Somalis is that we import most products, when
we should be producing them.”
Through the SBCF, Yusef was able to
purchase high-speed manufacturing equipment, allowing her to produce
shampoo bottles that limit waste from importing more plastic.
Her
company is also supported through the SME Facility (SMEF). SMEF provides
technical assistance and business development services to assist Somali
entrepreneurs to launch, manage, and grow successful businesses. Asli
and her partners were trained in budget planning, finance, and human
resources training, which is helping their business become more
effective. SBCF and SMEF fall under the Somali Core Economic
Institutions and Opportunities (SCORE) Program, which is funded by the
World Bank’s Multi-Partner Fund (MPF).
Armed with this knowledge,
Yusuf and her partners have expanded their business. They created a
sachet-packet shampoo line as a new product.
“There is a demand
for one-time use 10 milliliter sachets, especially among young people
and those who cannot afford full bottles,” Yusuf said. “We are in the
process of manufacturing our own bottles to drive prices even lower.”
The demand for fresh milk in Mogadishu has skyrocketed since Sahal opened his dairy business, with support from the Somali Business Catalytic Fund (SBCF). Photo: Hassan Hirsi/World Bank
Challenges
in Hargeisa are similar to those in Mogadishu, where Yusuf said
“accessing capital is probably the main constraint to private sector
growth.” There are also challenges such as the availability of skilled
labor, supply-chain issues related to infrastructure, affordable energy
and economic policies that support private sector competitiveness are
also prominent.
Yusuf can see the results in Hargeisa, where the
large market could be used to create jobs for young people as well as
keep currency in the market and limit inflation.
“Our company is
managed entirely by fellow citizens,” she said. “We have employed an
additional 17 people to support the expansion of our company, of which
most are young people. A third of our employees are women.”