Micro Finance



About micro-finance-inner111-388x551.jpg

M-Dahab was established in July 2014, and currently works in different sectors across the country. We work in agribusiness, livestock, fishing and other productive sectors. The main objectives of M-Dahab is to create employment opportunities for the youth, women, start-ups and small-scale farmers. It is all about financial inclusion,  providing access to both rural and urban areas, to fight and reduce poverty.


Our investment methodologies are Shari’ah compliant, which means our customers can receive finance without having to worry about their religious beliefs being offended.


Micro-finance started with the recognition that poor people and small business entrepreneurs had the capability to lift themselves out of poverty and poor living standards if they had access to affordable loans. High repayment rates in the industry have changed the perception that the poor are not credit worthy. With the right opportunities, the poor and the small business entrepreneurs have proved themselves to be productive and capable of borrowing, saving and repaying, even without collateral.

Areas of Operations

MicroDahab is currently working in; Mogadishu, Hargeisa, Bosaso, Burao and Berbera, the following are the sectors we invest:

  • Agri-business
  • Women entrepreneurs
  • Youth Employment
  • Small and Medium Sized Enterprises



The agri-business sector potential and contribution have been tested in the pilot projects that were implemented in the year 2014 at Arabsiyo and Agabar (Wadajir and Barwaaqo Farmer Cooperatives) respectively, that is expected to have an estimated 10% increase in the total crop production per yield. Therefore, MicroDahab found an opportunity to develop customer relationships with the farmers and develop innovative products and services to client farmers. We introduced Solar Energy for irrigation and village lighting, proposed new crops (Sesame and Sunflower Oils), provided trainings and skill development programs.


Women Entrepreneurs

During our piloting operations, women have shown a very good credit history and willingness to work in the market more than men, which made our clients 60% of them to be women. Women beneficiaries are mostly live in urban and rural areas, they are also engaged in farming, Livestock, Tie and Dye and Small Shop Owners. Most of the households that we invested are headed by mothers, which forced them to engage in self-reliance businesses.

Therefore, MicroDahab will provide micro financing to give them chance to work and in effect create employment and income generating activities for women with viable businesses.xzs





Youth Employment

MicroDahab is currently working with youth in employment creation projects that can contribute to the overall employment and therefore their incomes. The office has launched a campaign; “Computer for Knowledge Campaign” to give financing for university students who are not able to buy laptops one time on spot, and give them a chance to pay in installments in a duration of 6 to 8 months.


It is also important to note that, the office is planning to establish partnership with local NGOs to select those who successful graduated from their vocational trainings and provide them with the necessary tools to engage in the employment markets with their skill and knowledge.
Youth will also have an opportunity to present their talents and innovations under Youth Enterprise Initiative YEI to enables youth to present their innovative ideas and talents to create their own businesses.

Small and Medium Sized Enterprises

It is our intention to help grow the small and medium sized enterprises, through allowing access to finance. This line of investment requires a great amount of capital either startups or existing companies, it also needs to have collaterals.
Clients will send their application or request to finance to MicroDahab – Hargeisa Branch with viable and productive business plans, this business plan requires having solid financial statements/projections, not in trade related items/products i.e. products that are locally available and the business should have social impact

Livestock Sector

The livestock sector which includes all by-products and associated value chains such as the Milk value chain, we provide the rural herders with a $300-$500 loan which will be repaid lump sum after the herder has fattened the sheep for a period of 6-8 months, however, we anticipate that herders

can generally realize a profit of $150-220 from a $300-$500 loan assuming an average price of $30 for small/young goats that can be resold in 6-8 months for $40-$50.
Fresh For All – Milk Project is intended to introduce our clients to healthy aluminum milk cans, and a way forward to substitute the use of second hand plastic cans. The beneficiaries of this project will be able to use hygienic and healthy cans, which are very sustainable for a long period of time, with high standard quality aluminum milk cans.




Our vision is to create a region where everyone has the opportunity to uplift themselves from poverty through enterprise and to fight unemployment by creating new sustainable businesses that enlarge the economy.


Our mission is to provide Sharia compliant financial solutions to empower people living in poverty across the Horn of Africa so they can improve their lives and better their future.


Our motivation comes from our faith in Islam and our desire to help and partner with our brothers and sisters who own small businesses. We take guidance from the following hadith:
a. The Prophet Muhammad (s) said, “None of you truly believes until he wishes for his brother what he wishes for himself.”


Bukhari and Muslim.
Therefore we strive to help our brothers and sisters achieve the best life possible and ensure that we deliver our services in the most excellent manner possible.







Our Goals

  • Start pilot project before September 2014
  • Roll out the project to the rest of the Somaliland provinces by 2016
  • Reach 25,000 customers by 2020
  • Customer portfolio worth $7,000,000
  • Become a sustainable and profitable entity
  • Demonstrate economic benefit made to our customers
  • Increase employment in the areas where we work


Core organisational values must be imbedded in our organisation to establish a culture capable of achieving our Mission?

  • Keenness to Earn Legitimate (Halal) Earnings
  • Trade through Mutual Consent
  • Truthfulness in Business Transactions
  • Trustworthiness in Business Transactions
  • Generosity and Leniency in Business Transactions
  • Honouring and fulfilling Business Obligations
  • Fair Treatment of Workers


MicroDahab is currently working in all Somali regions, we invest in the following sectors :

  • Agri-business
  • Women entrepreneurs
  • Youth Employment
  • Small and Medium Sized Enterprises


MicroDahab MFI firmly believes that technology is one of the key enablers for scaling microfinance. For MicroDahab technology is an investment that is adding value to what and how we offer financial solutions to our members. MicroDahab MFI Microfinance is among the first to develop and deploy an industry standard MF technology platform in-house, delivering superior value to our end customers. The systems designed and deployed at MicroDahab MFIs have enabled the business to grow rapidly since its simple to use, saves time, is accurate and allows for data highlights to be transferred to head office when needed. MicroDahab MFI is now investing in putting up a robust IT backbone with a world class data backup centre delivering mission critical services and connectivity across our branch offices to manage the next phase of growth. The new agile and scalable technology architecture is capable of handling the challenges specific to the microfinance sector. A web-based Business Intelligence portal using state-of-art technology and a highly flexible and scalable platform has also been deployed to support the business growth and operations.