Promoting Somali MSMEs through the Gargaara financial institution

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The project supports Somali micro, small and medium-sized enterprises through the state apex financial institution Gargaara. Gargaara, which means help in English, was set up by the Somali Ministry of Finance with the support of development partners, in particular the World Bank. The German participation will further strengthen this institution and includes a package of refinancing and investment-related advice. Gargaara will pass the refinancing on to selected partner banks and microfinance institutions to provide loans to micro, small and medium-sized enterprises. This will enable the companies to carry out planned investments and create jobs. High unemployment, particularly among young people, and the associated widespread lack of prospects is a key challenge in Somalia. The advisory services will strengthen Gargaara's capacities and increase the creditworthiness of SMEs, giving their investments a higher chance of success.