Garowe, Puntland, Somalia – December 12, 2024: Himilo Microfinance Institution and Salaam Development Center (SDC) have signed a Memorandum of Understanding (MOU) to launch a transformative agricultural loan program under the Multilateral Fund Project. This initiative, aimed at empowering vulnerable female farmers in the Nugaal region, seeks to alleviate poverty and build resilience against food insecurity.
The partnership will implement a Credit Guarantee Facility for Agricultural Loans program targeting smallholder women farmers. This program emphasizes group-based support, with beneficiaries organized into cooperatives across four key agricultural locations: Laacdheere, Rabaable, Cuun, and Balley/Jibagale. Each group of five women will receive loans in the form of assets to enhance agricultural productivity and foster entrepreneurial growth.
Building on the insights of the INTPA/Kobciye project, the program integrates financial inclusion training with access to microfinance services. Beneficiaries will also receive financial literacy training to manage their businesses effectively and achieve long-term economic sustainability.
Under the agreement, SDC will oversee the selection of beneficiaries, organize cooperatives, and monitor progress post-loan disbursement. Meanwhile, Himilo Microfinance will verify candidates, facilitate loan disbursement, and provide business training. This collaboration highlights a shared commitment to empowering women through sustainable development and economic diversification.
“This initiative is a critical step towards enhancing food security and creating sustainable livelihoods for women in Puntland,” said Mohamed Aden Jama, Executive Director of Salaam Development Center.
The program will run for 18 months, with potential renewal contingent upon the success of the first phase and the availability of additional funding.
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