Grace Ashiru
Somaliland has launched the second phase of a US$500,000 financing programme aimed at supporting young entrepreneurs seeking to establish or expand businesses.
The initiative, managed by the Somaliland Youth Development Fund in partnership with MicroDahab, a company within the Dahabshiil Group, was announced during a ceremony in Hargeisa.
It will provide interest-free loans to eligible young people across six regions, including those with vocational skills and viable business proposals.
The programme is intended to address difficulties faced by young entrepreneurs who cannot easily obtain affordable financing through conventional banking institutions.
Youth Development Fund executive director Abdulqaadir Ismail Jaylaani said the second phase would combine recovered loan repayments with additional financial contributions and operational support.
Approximately US$300,000 recovered from beneficiaries of the previous financing round will be made available to another group of entrepreneurs.
A further US$100,000 contribution has also been included, with the overall package valued at US$500,000.
Under the arrangement, successful applicants will receive loans without interest and repay the amount borrowed through monthly instalments over two years.
For example, an entrepreneur receiving US$5,000 would be required to repay the same amount without additional interest charges.
Officials believe the approach will help young business owners access capital while reducing the financial pressure associated with high borrowing costs.
Applications will be submitted through a dedicated online platform.
The selection process will involve three stages, beginning with preliminary screening, followed by assessment of business proposals and a live panel evaluation.
According to the fund, the procedure is designed to promote transparency and ensure financing reaches applicants with sustainable business plans.
Young entrepreneurs who successfully repaid loans during the first phase may also qualify for additional financial assistance.
Representatives attending the launch welcomed the programme, identifying youth entrepreneurship as an important contributor to employment creation and local economic development.
They also encouraged businesses and financial institutions to provide further support for initiatives targeting young entrepreneurs.
The programme offers an alternative funding channel for individuals who possess business ideas or practical skills but lack sufficient startup capital.
Its success will depend on the effective assessment of applicants, repayment performance and the ability of supported enterprises to develop sustainable operations.
The initiative forms part of wider efforts to encourage youth participation in economic activity and promote business growth across Somaliland.
