Finance for Inclusive Growth in Somalia

Loan from MicroDahab helped me install solar power and cut off diesel costs

Loan from MicroDahab helped me install solar power and cut off diesel costs

Ahmed Warsame Farah.Farmer in Gabiley, Somaliland. He secured a loan from MicroDahab which enabled him install solar panels thus doing away with diesel generators. Photo; AECF 2023

Ahmed Warsame Farah is a crop farmer in Gabiley region of Somaliland. He produces a range of vegetables such as tomatoes, onions, and capsicum among others. Owing to intermittent and unpredictable rains, Ahmed irrigates his farm, thanks to a river located about 500 metres away from his farm. However, Ahmed says, fuel costs almost forced him to quit farming. “There were days I thought of giving up,” Ahmed recalled. “Most of what I earned went into buying fuel. It just didn’t make sense anymore.” But things changed when he learned about a loan facility from MicroDahab, an implementing partner for FIG-Somalia.

“I approached them and they advanced me a loan which enabled me to buy and install solar panels which generated electricity to power the pump generator,” says Ahmed. Since Gabiley enjoys sufficient sunshine almost all year round, Ahmed does not have to worry about irrigating his farm. “My expenditure has significantly reduced and profit margins have risen by 40%.” Ahmed now makes up to $1200 every month supplying fresh produce to markets and individuals in Gabiley. The benefits have extended beyond his own family. Ahmed has been able to employ two additional workers to help with cultivation, harvesting, and transportation, creating livelihoods for others in his community. His farm now supplies a regular flow of vegetables and fruits, contributing to local food security and income generation in the region.He adds that the process of getting the loan was simple. “I pay back the loan every month without any difficulties because the farm is generating good income,” Ahmed states.

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