20 Jul Bridging the Gap to Boost Financial Inclusion in Somalia by Elizabeth Adeyemo
Bridging the Gap to Boost Financial Inclusion in Somalia
Somalia is one place that has had a large share of political, economic, and security unrest. There have been many challenges that have plagued Somalia from financial exclusion, malnutrition, recurring drought and flood, poverty, and security issues. Somalia has an estimated population of about 14 million people, and more than 75% are impoverished and 43% in abject poverty. About 60% are nomadic and semi-nomadic pastoralists.
Economic development has been quite challenging and insufficient to cater for a large part of the population. According to the World Bank, Somalia’s GDP grew by only 2.5% per year between 2013 and 2017, which pales in comparison to the population growth of 2.9%.
Youths make up about 73% of the population, and they are mostly unemployed, with the percent of unemployment in 2017 pegged at 74% and 61% for women and men, respectively.
Its economy and livelihood are heavily dependent on the livestock sector. This contributes to 40% of the GDP but falls to threats of droughts and floods.
Women are mostly affected and financially excluded due to gender stereotypes. There is poor access to finance and women entrepreneurship. They face discrimination and barriers to accessing finances, livelihood assets, and employment opportunities. Boosting financial inclusion and sustaining economic growth would require an increase in Somalia’s resilience to shocks and climate changes, especially in the livestock sector.
Hunger Reduction International is striving relentlessly to bridge the financial gap in Somalia by providing humanitarian services that boost food security, build resilience, and reduces the effects of droughts. We have also provided economic empowerment to women to scale up their access to finance and promote their employability. We desire to do much more and reach thousands of people this year, but we need all the support and funds we can get. Help us bridge the financial inclusion gap by donating here.
Source: World Bank