The objective of the Somaliland Private Sector Development Re-engagement Project II (Som-PREPII) was to improve the business environment conditions for enterprise growth and job creation in Somaliland through building entrepreneur-related capacity. The project did this through a risk-sharing fund for entrepreneurs that invested in enterprises through matching grants.
The matching grant component, named the Somaliland Business Fund (SBF), supported both established businesses that wished to scale-up and start-up (innovative) businesses. The objectives of the Fund were to:
jumpstart and strengthen private business and mobilize business services in Somaliland that can generate public benefits including spill-over effects within production and services sectors; andsupport entry into new processes, products and markets by existing or new enterprises, by providing funding to projects with replicable benefits.
The funding was allocated on the basis of a competition managed in a number of competition rounds. Over the course of 2.5 years the SBF received almost 3,500 applications and committed a total grant amount of over $11 million. SBF awarded 174 grants over two competitive rounds with a final disbursement figure of $9.2million. Therefore 83% of total grants committed were disbursed to Grantees. This result exceeded expectations given the fragile and underdeveloped business environment in Somaliland.
A total of 105 projects were fully completed - i.e. all milestones were met and the grantee was paid the full amount of the grant award. The SBF portfolio covered a diverse range of sectors. A sample of grant projects rated 'well-performing' are provided below.
Agriculture:
A family business trading frankincense since 1936. Additional value added processes in Somaliland by greater processing of gums and resins – grading, sorting, polishing and hygienic packaging.Agricultural expansion business providing delivery and cool storage for local farmers. Increased local domestic production, employment opportunities and skills development.
Education:
Gaariye primary school was set up to offer well balanced education used proven European and UK systems with additional local course content as necessary.Expansion of the engineering faculty at Gollis University through purchasing a range of laboratory test equipment such as laboratory ovens, test sieves and skills training for lab staff.
Manufacturing:
Production of affordable & quality PVC for the construction and telecoms businesses. Project created 7 new jobs and introduced 1 product.
Livestock:
Start-up of Hargeisa livestock market through a PPPStart-up veterinary service clinic providing mobile veterinary services, animal disease control, service to livestock market, animal fattening. Project trains livestock keepers about disease control and parasites.
Energy:
Commercially viable energy consultancy business and training institution.Project procured & installed wind turbines in Ainabo.Construction and commissioning of hybrid solar plant, largest at the time in East Africa.
Fisheries:
Strengthening small private fishing business by increasing fish catching capacity to 1,000 kg each week.Offering fresh mud crab to export to Ethiopia and U.A.E; created 7 new full time jobs &15 part time jobs.
Gum & Resins:
Project created greater competition for unprocessed gums (resulting in higher incomes for gum producers) with a significant demonstration effect on the industry with two processing companies also purchasing new sorting equipment. Created 30 new jobs & and an 800% increase in sales.
Health:
Introduction of diagnostic equipment and devices not yet introduced to the market e.g. digital x-ray, Elector Cardio Graph (ECG Machine), laboratory screening devices for HIV.Expanding services at private health clinic focusing on lab tests for pregnant women.
Manufacturing:
Processing cereal & food products company; created 10 new jobs.
Services:
Expanded auditing & accounting business by opening 6 offices throughout the country. Teaching ACCA classes and providing training in all regions.
Solid Waste Management:
Improved rubbish collection service system and ability to reach all district clientsMedical waste disposal business.
Mining:
Mineral exploration services one-stop-shop offering elemental analyses services and geochemical and orientation surveys services.