By Asha Elmi - Reporter
HARGEISA, 10 October 2026 – Somaliland’s Youth Development Fund has launched the second phase of a $500,000 financing programme to help young entrepreneurs establish and expand businesses through interest-free loans.
The programme was announced at a ceremony in Hargeisa on Thursday and is being implemented in partnership with MicroDahab, part of the Dahabshiil Group. It will target young people across six regions, including those with vocational skills or viable business ideas.
Abdulqaadir Ismail Jaylaani, executive director of the fund, said the second phase would combine repayments from the previous financing round with new contributions and operational support.
He said $300,000 recovered from previously disbursed funds would be made available to another group of young entrepreneurs. The programme also includes a new contribution of $100,000, while the overall financing package is valued at $500,000.
Jaylaani said the loans would be interest-free and repayable over two years in monthly instalments. A borrower receiving $5,000, for example, would repay the same amount without additional interest.
He said the scheme was intended to address a major obstacle facing young entrepreneurs, who often struggle to secure affordable financing from commercial banks because of high financing costs and strict requirements.
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Applications will be submitted online through a dedicated platform. The fund plans to assess applicants through a three-stage process comprising initial screening, business proposal assessment and a live panel evaluation intended to promote transparency and fair competition.
Jaylaani said the programme would prioritise eligible applicants whose businesses demonstrate viability and sustainability. Young entrepreneurs who successfully repaid loans under the previous phase would also be considered for further financing.
Representatives of Somaliland at the launch welcomed the initiative, saying youth financing could contribute to job creation, poverty reduction and local economic development. They also urged businesses and financial institutions to support the fund.
Officials called on the private sector to increase its participation and encouraged stronger cooperation between financial institutions and the fund to improve young people’s access to affordable financing.
The fund has previously supported youth initiatives through grants and loans. Jaylaani said it hoped to attract additional resources in future rounds to expand the number of young people receiving business financing.
The latest phase follows an earlier programme that supported young people with vocational skills. The new round focuses on interest-free loans for business activities, with repayments intended to help finance opportunities for other entrepreneurs.