Challenges Of Access To Finance For MSMEs In Somalia
Access to finance for MSMEs in Somalia has become an issue since the state lacked an effective government to cater for the financial services. Therefore, the willingness to offer such exceptional services became paramount, leading to the emergence of private financial institutions in Somalia.
A decade ago, a group of Somali businesspeople started financial institutions in Somalia to provide commercial financial services to the Somali people for the first time after the collapse of Somalia’s central government in 1991, the experience of serving commercial loans was new and challenging. Investors had faced long heads with conservative communities with little understanding of Shari’s models regarding the financial sectors. Assuming the deals conflict with sharia’s principles, the community c...
