Small and Medium Enterprises Highlight Need for Improved Access to Finance

Small and medium enterprises in Somalia have highlighted the need for improved access to finance, citing credit constraints as a key barrier to business growth and expansion.

Entrepreneurs across various sectors report that limited access to affordable financing has restricted their ability to invest in equipment, expand operations, and create jobs. Many business owners rely on personal savings or informal lending arrangements, which can limit scalability.

Financial institutions acknowledge the financing gap and note that risk management concerns and limited collateral options have affected lending to smaller businesses. Some banks and microfinance providers have introduced tailored products aimed at supporting entrepreneurs, though coverage remains uneven.

Business associations have called for stronger collaboration between government institutions, financial service providers, and development partners to expand access to credit. They emphasised the importance of financial literacy programmes to help enterprises better navigate available financing options.

Economists observe that strengthening access to finance is critical to private sector development and economic diversification. They note that improved financing mechanisms could enhance productivity and contribute to job creation.

Authorities have reiterated their commitment to supporting small and medium enterprises as a cornerstone of inclusive economic growth.