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Friday, April 12, 2024

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    Storing a glimpse of hope

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    The Somalian civil war in the 1990s contributed to a rise in the number of poor people living country. Background factors in the Somali conflict were resource competition, military repression, and colonial legacies. Because of the country’s political stability after the war, society began to rebuild its enterprises. Unfortunately, the majority of the population was extremely poor, especially SMEs, and lacked the financial wherewithal to rebuild their businesses. Maal microfinance was established to reduce poverty by providing affordable, sustainable financial services to the poor in Somalia. Maal targets low-income households that normally fall through the cracks of formal lending systems.

    SMEs, particularly those owned by women, have been particularly severely hit by the COVID-19 error, with supply chains disrupted and cash flow reduced. Curfews and social segregation have turned off many customers, which hasdisturbed the customer flow. Women who work in small businesses have been severely impacted by the COVID-19 pandemic. The women admitted that the city’s curfew has considerably decreased the amount of time they have to sell their tea and milk. After the pandemic of COVID-19, Maal MFIinvested in 60 women with small businesses (self-help groups) and 120 farmers in the Gedo region, particularly in Bardhere, and also in 245 farmers in lower Shebelle, Somalia. This helped SMEs recover from the effects of COVID-19 and the financial crisis that has plagued them in recent months.

    Emergency online forex companies started in 2017 and strengthened in 2019, which attracted hundreds of young traders mainly concentrated in Somalia’s capital Mogadishu. Forex trading was relatively new in the country, and young small business owners sold their properties and their businesses to invest in Forex trading companies, believing they would receive hefty returns of 30% to 70% of their money. People were increasingly encouraged and dared to trust their money, and unfortunately, it turned out to be a disaster. People were increasingly encouraged and dared to trust their money, and unfortunately, it turned out to be a disaster. This affected many small business owners inexpertly, and Maal Microfinance was established to provide financial services to help and encourage small entrepreneurs to recover the financial damages that have tormented them in 2019 and eventually become self-sustainable.

    In the last 2 years, Maal Microfinance has contributed to huge development in Somalia by financing SMEs and medium-sized businesses, particularly women in small businesses. Maal strives to stimulate economic growth.

     

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