In Puntland, Somalia’s northeastern region that is home to almost four million inhabitants, people are moving from rural to sub-urban and urban areas on a large scale due to recurrent droughts and piracy-related problems in the area.  As a consequence of this migration, the number of people who are starting up small- and medium-sized businesses—as they find themselves forced to explore new means of livelihood—has increased significantly.  These new small-scale business entrepreneurs, however, find themselves in a vulnerable position for two reasons: not only are developed financial institutions and services direly lacking in Puntland, but these individuals themselves have neither basic business skills nor alternative income-earning means.

In its effort to respond to this need, Somali Family Services is helping to build sustainable livelihoods for these vulnerable men and women in Garowe, Puntland’s capital, through a project supported by the United Nations Development Programme.  Apart from providing over 100 women, youth and internally displaced persons (IDPs) with micro-credit loans, the project is engaging men and women in capacity building trainings aimed at developing their business literacy, income generation, and entrepreneurship skills.  In addition to providing short-term, immediate financial assistance to small-scale business entrepreneurs, the project forms part of a broader effort to scale up Puntland’s financial infrastructure.