THE MICROFINANCE SERVICES IN SOMALILAND
THE MICROFINANCE SERVICES IN SOMALILAND The potential of creating institutional credit and deposit services for poverty alleviation in Somaliland is quite significant. About 2 million people, or 60% of the population, are considered poor and have no access to formal financial services. According to the Microfinance Baseline Survey (2011), there are over 100,000 micro-small enterprises that provide employment opportunities to nearly quarter of a million people or 33% of the country’s total employment. Accordingly a large number of urban and rural households derive their livelihood from micro-small enterprises. Therefore, development of this sector represents an important means of creating employment, promoting growth, and reducing poverty in the long-term. However, in spite of the importance of this sector, the baseline survey shows that provision and delivery of credit and other financial services to the sector by formal NGOs and non-financial institutions has been inadequat...