In Somalia, women face significant challenges in accessing capital and participating fully in the economy. Addressing the problem of limited economic empowerment and inclusion of Somali women is crucial. These challenges include restricted access to formal financial services, cultural norms discouraging entrepreneurship, gender discrimination, lack of business skills and training, as well as political instability and security concerns.
Asal was contracted by RTI International to respond to a critical need for investment models tailored to women-led businesses in Somalia as part of the USAID funded Growth, Enterprise, Employment & Livelihoods (GEEL) programme, promoting inclusive economic growth in Somalia. GEEL aimed to accelerate Somalia’s integration into the global economy by improving the country’s competitiveness in export markets, reducing reliance on imports, increasing market linkages and business partnerships, spurring new investments to create jobs, and engaging the private sector to support the resilience of vulnerable populations.
For greater economic empowerment and inclusion of Somali women, Asal developed a women's investment strategy, tailored to the needs of women-led businesses in Somalia for them to gain better access to capital. The strategy provided an investment model that addresses the specific challenges faced by women entrepreneurs to provide them with access to capital, mentorship, and support networks. By using trust-based investment practices, the model promotes a relationship between investors and women entrepreneurs that becomes stronger, resulting in more sustainable and effective investments.
As diaspora-based investors play an important role in supporting women’s economic empowerment by providing funding, guidance, and networking opportunities, this model was also introduced to Somali Diaspora communities for greater awareness about investment opportunities.
