Young Somali farmers

Meet Asli Ahmed Omar, 19 years old Somali farmer at Moyko village, Jowhar district. Standing in front of her farm waiting for land preparation to begin her 1 hector farm. Tracks provided by Somgit’s research and development project. 

Asli, carrying out cultivation activity at her farm after receiving seeds, farming tools and training on good agriculture methods training by CED.

A unique NGO-private sector collaboration of CED and Somali Green Initiatives & Technology (SOMGIT) is giving Asli and other many young Somali farmers in Middle Shabelle an opportunity to be exceptional skilled farmers. An innovative CED and Somgit’s lease-to-own drip irrigation scheme.

Asli taking harvested maize crops on her shoulder to remove seeds from combs at her farm in Moyko village, Jowhar district in Middle Shabelle Region.

                      

Asli is delighted to harvest her maize farm, she carefully collects each comb form the harvest. Asli walking behind the donkey cart that carries her harvested maize crops home. She will remove the seeds from the comb and take it to the market for sale. The Stability Fund is proud to be a partner of an innovative youth-led development programme that bring stability in Somalia.

Editorial

A report by the Nairobi-based firm Wasafiri Consulting came across the Stability Fund’s desk this week, which looked at the challenges and opportunities for international donors of working with local organisations in Somalia.  It started with the quote by an un-named donor representative “If we are not there to build local capacity, what are we there to do?” and goes on to describe how “much investment in capacity building appears directed toward delivering donor projects, rather than improving local impact”.

The concerns highlighted in the report resonate strongly with the Stability Fund, where we view partnership with Somali organisations whether government, private companies, civil society or others as key to what we do.  That’s why this issue of the Stability Fund newsletter focuses on partnership – with the Prime Minister’s Office, with local government in Dhusamareb and Abudwak, with the company Solargen Technologies and the NGO AVORD.  In all of these cases, the ideas and decisions about where the money goes come not from the Stability Fund team, but from the various organisations involved and from the partnerships that have evolved between them.  What better way to build capacity and deliver local impact in Somalia than to put the decisions in the hands of Somali organisations?

Lighting up Dhusamareb

As Somalia stabilises, demand for energy is growing. This started in Mogadishu, but with the large number of returnees and increased business activity, the demand for energy is spreading across Somalia. Most Somalis do not have access to electricity. Instead their energy comes from burning wood or charcoal, or from petroleum. This energy shortage, compounded by the absence of a national grid, and combined with the destructive environmental effects of existing energy sources, means that innovation is needed to meet Somalia’s energy needs. 

Last year, the Prime Minister’s office approached the Stability Fund and asked for some help. They had been in touch with the local administration in Dhusamareb, which had requested support to instal street lights. The Prime Minister's Office had seen the impact street lights had in Mogadishu and were keen to help Dhusamareb reap the same benefits.  The Stability Fund grasped this proposal with both hands: one hand because we have seen the effect of solar street lights in Mogadishu, Galkayo and elsewhere, and the other hand as we saw something important in different layers of government coming together to deliver results for citizens. Working closely with the local administration and the Prime Minister’s Office, the Stability Fund visited Dhusamareb to assess feasibility and make sure that the community in Dhusamareb was supportive.  They were, and despite the difficulties of drilling into rocky ground in Dhusamareb, the project looked feasible.  Next we started our search for a Somali company to do the work.

The Stability Fund partnered with SolarGen Technologies, a Somali owned business based in Mogadishu, providing sustainable and cost-effective energy. With offices in Mogadishu, Kismayo and Nairobi, SolarGen operates across the south and central regions of Somalia. It has implemented projects ranging from off-grid installations for enterprises and homes, solar-powered street lights, and pumps for irrigation and drinking water. In order to implement these projects SolarGen has employed young, educated and well-trained Somalis. Though the potential of renewable energy technology in improving livelihoods is great, the high initial capital costs and meeting the growth in demand for energy has been beyond the reach of Somali start-ups. ‘Our partnership with the Stability Fund enabled us to leap over the capital investment hurdle that was inhibiting our ability to drive forward the installation of solar-powered systems. It helped us to catch up with the rapidly increasing demand of energy within Somalia’ says Aidarus Abubakar, Managing Director of SolarGen.

SolarGen has taken on the task of installing solar street lighting in Dhusamareb. The work is happening right now. A total of 118 lights will be located on the main road, market, hospital and police station. The locations were chosen by the district administration to improve the stability by increasing the community safety, and to demonstrate its ability to respond to citizen’s needs.

“We are delighted to be giving Dhusamareb town its first ever street lights  and in an environmentally friendly manner”, says Aidarus Abubakar, who is excited about the project and knows the huge impact it can have on the region’s stability, as well as on the growth of his business. SolarGen is now opening a new office in Hargeisa to serve customers Somaliland and to take another step on the road to achieving its ambition to become a leading renewable energy company in East Africa.

Inspiring the Youth of Beledweyne

One of the key challenges impeding Somalia’s recovery from decades of anarchy and violence is the alarming levels of unemployment. According to UNDP, the unemployment rate amongst the youth in 2012 was 67% across the country. With an estimated population of 172,000, Beledweyne has a thousands of unemployed youth. 

African Volunteers for Relief and Development (AVORD) is a promising Somali organization with big ambitions. Its philosophy is based on the understanding that local communities have inherent capacities to develop if they are equipped with the necessary skills. In line with this philosophy, AVORD is helping young people by training them on various skills that are in demand in local markets.

AVORD carried out a labour market survey which showed that skills related to construction industry were required in Beledweyne, the largest town in Hiran region. With Stability Fund assistance, and in collaboration with community leaders, local authority, private sector and other stakeholders in Beledweyne, AVORD established Tawakal Vocational Training Center. On October 1^st 2014, the center was stocked with highly qualified trainers and training equipment.  Over the past four months, 210 youth selected from various backgrounds attended the training program, and were exposed to extensive theoretical and practical sessions, covering four disciplines; masonry, metal fabrication, carpentry and electrical engineering.

Gradually, their lives are being transformed from living in the streets with limited prospects to productive lives with marketable skills and a whole new world of opportunity. Mohidiin Mohamed Hassan, 22-years old, attends the electrical engineering course. In a recent interview, he discussed how his training has positively impacted his life.  “Before I came here, I was quite desperate and my future appeared too uncertain. Every day I woke up, not knowing what to do or where to go next.” Mohidiin’s family, like many students at the center, could not afford to pay for his schooling and he therefore missed the opportunity to get an education.

“I felt I have a sense of purpose and a clear direction of where I am heading”, Mohidiin said.  Upon completion of this training, Mohidiin, like others at the center has a chance to earn an income for himself and support his family too. The Tawakal center has become a hub in Beledweyne, a place where companies come to recruit skilled workers. Mohidiin, is one of 12 trainees who have already been offered a part-time job opportunity by Dayah Power Supply, a local business.    

The six-month training program will end this month. AVORD plans to establish a social enterprise to serve Somalia’s growing construction industry and guarantee the continued operation of the center without relying on grants from the Stability Fund or other donors. The enterprise will play a critical role in rebuilding infrastructure destroyed by war while creating jobs for its graduates.

In partnership with the Stability Fund, AVORD is contributing to local stability by creating alternative income sources for young people – helping to give them better prospects in life. As the center grows, Abdinasir Nur, the director of the center, is enthusiastic and hopes it will have a lasting impact. “We have adopted a different approach whereby youth are trained and provided with continuous mentoring and coaching as they commercialize their new skills. The entire project team and the AVORD family are determined to sustain the initiative for years to come by creating a viable business that delivers skilled workers into the local labour market."

Flood mitigation in Abudwak

The city of Abudwak is located in northwest of Galguduud region in central Somalia. Most of the people are pastoralists herding camels, cattle, sheep and goats. The city is situated near rich grazing lands, and boasts one of the largest animal markets in the region. The economy is growing, with the construction of offices, warehouses and private homes on the rise. Abudwak and the surrounding area, with its characteristic red sandy desert look, sit in a basin area which is usually flooded by the intense rain that comes twice a year. However further into the grazing lands near the border with Ethiopia's Somali Province, one finds forest and mountains where thousands of camels are herded.

The federal and local government jointly appealed to the Stability Fund to provide support to establish a drainage system to address perennial flooding in Abudwak. Through local consultations, we found that the community wanted to enhance the system that had been installed the previous year with support from local businesses and the Danish Refugee Council. The existing generator, pump and pipe drainage system had worked reasonably well, but lacked the capacity to cope completely with the scale of flooding.

Working closely with the local government, the Stability Fund purchased a high capacity generator and pump. We contracted OPEC, a local Somali construction company, to conduct the excavation and construction work. This involved the construction of an underground storm water collection tank and plumbing works from this tank to an elevated tank, which is in turn connected to a drainage network. With the construction work complete, the generator and a heavy duty pump were installed. This is a step towards a longer-term solution for dealing with flooding in Abudwak and has brought immediate relief of a problem that was impacting negatively on economic activity and public health. It has been delivered thanks to cooperation between the local administration and the federal fovernment.

The Stability Fund is proud to work with government and the community to serve citizens in Abudwak district. The commitment shown by those involved in the process was inspiring and the Fund will continue to support the region through a variety of new investments. 

Editorial

This edition of the Stability Fund newsletter highlights the diversity of the work we do in Somalia and the different approaches we take to identifying and implementing projects.

The ‘Lighting up Galkayo’ initiative is an example of our area-based work, where we aim to contribute to governance and peacebuilding in a particular part of Somalia – a city or a region for example.  In Galkayo, the Stability Fund is aiming to support projects that bring north and south together to ‘Think Galkayo, Act Galkayo’. The first of these was solar street lighting – a line of light connecting south to north.

The SOMGIT drip irrigation project is an example of our sector-based work.  This time last year, we published a call to Somali businesses to develop ideas for contributing to stability.  SOMGIT, one of two successful applicants, is now helping farmers in Middle Shabelle improve their livelihoods and is introducing new farming technologies to increase productive capacity.

Our support to the process of forming the Interim South-West Administration is an example of the Fund’s ‘Government Window’ work.  The Government Window – currently funded by the UK and Sweden – enables the Federal Government to identify specific stability, conflict reduction or local governance objectives it wants to achieve and, with Stability Fund help, realise those objectives. In this case, the Federal Government requested Stability Fund assistance to support the negotiations process in Baidoa, which led to the formation of Somalia’s newest interim administration.

It is through these three approaches – area-based, sector-based and Government Window – that the Stability Fund makes difficult decisions about how to contribute to reducing conflict and strengthening governance in Somalia.

Lighting up Galkayo

Galkayo is Mudug region’s capital, strategically located in central Somalia. Characterized by a semi-arid landscape, the region offers suitable climatic and geographical conditions for livestock and is populated largely by pastoralists. Goats, camels and sheep graze on dry, brown grass as herders sip tea and take shade from the piping hot sticky heat.

The city’s location gives the town importance on numerous socio-economic matters in Somalia. A lively trading city, Galkayo on the main trade routes between southern and northern Somalia as well as to the Somali region of Ethiopia. Moreover, Galkayo is a hub of calligraphic art, serving as a training ground for local visual artists.

On 11^th November 2014, an inauguration ceremony was held to mark the completion of the solar street lighting installation by the NIS Foundation, in partnership with the Stability Fund. This celebrated the illumination of 50 solar street lights installed at key locations near or around the infamous ‘green line’.

This mythical line that divides the city was a product of a peace deal signed in the mid-90s after fierce fighting between the two main inhabiting groups; Puntland now governs North Galkayo whereas South Galkayo is under the Galmudug administration.

The handover ceremony was organized with the intention of bringing the divided communities together, marking the completion of a mutually beneficial project. In attendance were the Mayors of North and South Galkayo, members of the city council, elders and business communities, women’s groups and peace advocates, all from both sides of the city.

Speeches from both Mayors reinforced the need and appetite for dialogue between the two communities in order to bring peace and development to the region. The Mayors reiterated the need for officials from both sides of the city to plan and act together to help unite feuding factions under the slogan ‘Think Galkayo, Act Galkayo’.

Women leaders from Galmudug and Puntland also spoke at the ceremony. Regular dialogue between women from both communities has fostered a positive relationship and a strong support framework for local development. Men were reminded of the legacy of Somali Youth League heroes and other key Somalia figures from Galkayo who played a key role in Somalia’s independence and self-governance.

“We don’t want to be widowers, lose our boys, raise orphans or spend a lifetime tending to fatally wounded young men. We want a better life so let’s not repeat the old mistakes and let us take advantage of this kind of opportunity. We want men to think about this’’, said Dhudhi Yusuf, a women’s leader.

Speakers reiterated the benefits of a joint implementation approach, which steered the authorities towards dialogue and coordination. In contrast with other dialogues convened as a result of killings or camel raids, this is the beginning of a community dialogue between north and south based on positive and mutually beneficial development.

The installation of solar street lighting in Galkayo marks just the beginning of Stability Fund support for economic growth and conflict resolution in the region. The Fund is now considering further initiatives to address priorities identified by the Mayors and city councils from both sides of the divide. 

An innovative business-driven solution

With the set-up of their research and development farm in Balad (the R&D site), it has been an eventful year for Somali Green Initiatives & Technology (SOMGIT).  Through an innovative NGO-private business collaboration with the Center for Education and Development, SOMGIT began engaging with local communities and authorities to introduce them to their pioneering water and agricultural solutions in hope that it will transform the traditional agricultural and irrigation system in Middle Shabelle.

Smallholding farmers in Somalia are highly dependent on rainfall but, with SOMGIT’s drip irrigation systems, farmers will no longer be limited to production in the rainy season and will be able to cultivate fruits, vegetables, and other higher-value crops that require more reliable water sources. The activities at the R&D site represent a pilot project that will act as a catalyst to generate improved incomes for local farmers and enable SOMGIT to grow its business.

In coordination with the government, SOMGIT cleared the equipment and supplies through Mogadishu Port and, in late November 2014, they were delivered to the R&D site for use by smallholding farmers. The equipment included farm tools and four new John Deere tractors to support the implementation of drip irrigation systems and the application of modern agro-inputs.

On delivery of the equipment and supplies, SOMGIT immediately cleared the land and began drilling a borehole. The company has employed over 50 people at the site, the majority of whom are from the adjacent village of Muryale in the Balad District. Muryale’s residents are excited by the opportunity to work and the prospect of learning modern agricultural methods. “This site is the only employment opportunity for the youth and women in the community” said a local elder.

The borehole at the R&D site is the only borehole for the village of Muryale. Previously, the village depended on the Shabelle River for all its water needs. “This project is a great opportunity for the community to improve its livelihood, over the years we lost many crops due to the poor rains and continued drought” said a local farmer in Balad. SOMGIT is now installing a solar-powered water pump and electricity supply at the site to deliver further benefits to the local community.

SOMGIT’s vision is to promote local economic growth and employment through new water and agricultural systems and thereby contribute to peace and stability. With support from the Stability Fund, SOMGIT aims to drill more boreholes in the region and further support communities by establishing farming associations and training farmers in the use of modern agro-inputs and drip irrigation systems.

Formation of the Interim South-West Administration

On 3^rd December 2014, newly elected Interim President, Sharif Hassan Shiekh Adan, was inaugurated in the Bay regional capital of Baidoa in the presence of President Hassan Sheikh Mohamud. The ceremony marked the formation of the Interim South-West Administration (ISWA), a process overseen by the Federal Government under its mandate to establish a federal state before 2016, as stipulated in the constitution.

The process began with the launch of two conferences of community elders from the regions. These produced conflicting demands regarding the number of regions that should form the emerging state. Negotiations with the two parties steered by the Federal Government led to the signing of a peace agreement and, on 22^nd June 2014, the two sides signed an agreement to form the ISWA comprising  three regions.

The Federal Government hosted an Iftar ceremony on 5^th July nominating an 18-member Technical Committee (TC) tasked with organizing a conference leading to the formation of the interim administration. The formation of the TC was an important first step towards the implementation of the agreement reached by the opposing sides in the region.  

The TC arrived in Baidoa on 8^th August and its work began with electing the chairperson, secretary, coordinator and sub-committees. In addition to drafting the constitution for the ISWA, the committee was tasked with ensuring that the draft was debated and approved by all delegates.

In order to facilitate attendance of the conference by the TC, traditional elders and some 320 delegates, the Stability Fund provided logistical and accommodation support. ‘With the support, we are able to achieve our goals of having a fully-fledged regional administration that our forefathers have been dreaming of for more than 65 years’ said Malak Malabow, a traditional elder participating in the conference. On 28^th October President Hassan Sheikh Mohamud officially opened the conference, in the presence of ambassadors from Sweden, Denmark and the EU, as well as the United Nations SRSG and IGAD.

On 31^st October the delegates elected a Steering Committee, including a chairman and two vice chairmen, to facilitate the process of forming the administration and adopting a constitution. The delegates successfully adopted the constitution and elected Sharif Hassan Sheikh Adan as President in November 2014. ‘Today we have a system in place and hope it will cater for the needs of our community who had been suffering lawlessness, anarchy and terrorism’ said Malak Deroow, a traditional elder.

The Stability Fund is proud to have had the opportunity to work with the various people and organisations that made all this possible. The commitment shown by those involved in the process was inspiring and the Fund will continue to support the region through various new investments. 

Editorial

One of the Stability Fund’s objectives is to support ‘legitimate, viable governance structures’.  This phrase, which fails the plain English test, belies some of the subtlety and thinking that went into its formulation.

We talk about ‘governance structures’ rather than ‘government’ to reflect the range of organisations the Stability Fund can work with.  Yes, this includes the Federal Government of Somalia, the governments in Puntland and Jubbaland, and emerging federal states such as South-West State.  But it also means district administrations, village and community councils and even private sector organisations.

And we talk about ‘legitimate’ and ‘viable’ knowing that there are multiple (and often conflicting) views in Somalia about which particular elements of Somali governance have the local acceptance and ability to take and enact decisions that affect people’s lives. These are critical factors the Stability Fund considers when making decisions about its governance projects:  is the structure in question legitimate and viable enough for the Fund to consider supporting it, and what effect in turn will the proposed support have on the legitimacy and viability of that structure?

This edition of the newsletter focuses on some of the Stability Fund’s core governance projects – at federal, federal state and district levels.  On top of the self-evident technical and practical challenges of these projects, questions about viability and legitimacy of the governance structures concerned have remained at the forefront of the Stability Fund’s thinking throughout.

Caretaker Administrator Training

Since February this year the Somali National Army, working alongside AMISOM forces, have liberated twelve major towns and district capitals from Al Shabaab.  Following liberation, it is essential that local government structures take root so that the Somali state can begin to assert some authority and control in the newly recovered districts – both to mitigate the risks of a power vacuum and to begin the process by which basic services such as security and justice might be provided to the people of these districts.

The Somali Ministry of Interior and Federalism (MoIF) set out the process by which it envisaged district administrations would be created.  The MoIF’s ‘Stabilisation Plan’ started with deployment of twelve-person Caretaker Administrations to each of the districts, and then set out a process of creating interim and then permanent administrations.  Under the plan, this political work is to be complemented by projects aimed at improving government infrastructure and supporting community priorities in the districts.

But the first step was to train the individuals the MoIF had identified for deployment to the districts as Caretaker Administrators, to bring them together in Mogadishu and to prepare them for the daunting task that lay ahead: to be the first Somali government officials in districts that had long been under the control of Al Shabaab.

So it was in April this year that the Stability Fund, jointly with Sweden (which has since become a donor to the Fund), contracted the Electoral Institute for Sustainable Democracy (EISA) to develop and deliver training to some 165 caretaker administrators.  Working closely with the MoIF and other Stability Fund consultants, EISA designed a week-long training package covering issues ranging from the roles of the caretakers, through service delivery on to how to manage the process of establishing interim administrations.  The course was run three times over consecutive weeks, ending with a graduation ceremony attended by President Hassan Sheikh.

While the graduation ceremony marked the end of the training, it was just the beginning of the historic task faced by the administrators who have since deployed out to 12 districts where they have started to lay the foundations for governance and development.  The challenges faced by these individuals are immense – not least the hardships posed by insecurity, austere conditions and poor access, but also the difficulties of negotiating conflicting political agendas, advancing the local process of establishing interim administrations, and delivering some support to the local population to demonstrate the benefits governance can bring.

The caretaker administrator training course was also just the beginning of the Stability Fund’s work to help build effective governance and deliver tangible results to the population.  The Fund is working in several of the newly recovered districts to support the administrators and implement the MoIF’s plan, and will continue to expand its presence as more and more districts become accessible.

Rebuilding and reconnecting with Warsheikh

In March 2014 the Somali National Army, working alongside AMISOM forces, liberated Warsheikh district from Al Shabaab.  Warsheikh is a historically-important coastal district located 60 kilometres north of Mogadishu in the Middle Shabelle region of Somalia. Warsheikh has cemeteries of many Somali Sufi Saints and traditionally was home to numerous Sufi Scholars who enjoyed the respect and love of the Warsheikh community and the whole of Somalia.

As one of the newly liberated districts, a temporary, caretaker administration for Warsheikh was formed through a district structure consisting of District Commissioner (DC), Vice-DC and a Police Commissioner. In May 2014, coordinating with the Ministry of Interior and Federalism (MoIF), the Warsheikh DC was one of the district officials to participate in the caretaker administration training programme.  

Following a joint planning session in Mogadishu with the Stability Fund and USAID-funded TIS programme, in June 2014, along with officials of the MoIF, we visited Warsheikh district to carry out a preliminary assessment.

During our sessions with the Warsheikh community and district administration several priorities were identified. Support to foster economic growth was prioritised, as well as basic services. And so, in addition to support for the local fishing industry, provision of safe drinking water and solar street lighting were selected for immediate investment.  

The Stability Fund and MoIF, together with Warsheikh District Administration, is signing a Memorandum of Understanding to formalise agreement on the support to be provided in Warsheikh district. Now it is time for the real work to begin: drilling boreholes, providing equipment to fishing cooperatives and installing solar streetlights will be our focus over the next several months.

The road to establishing IJA’s Public Financial Management Framework

In February 2014, the Stability Fund began providing technical assistance to the Interim Jubba Administration (IJA) to establish a sound Public Financial Management (PFM) framework and the necessary infrastructure for financial operations to commence by July 2014. This aggressive timeframe was met largely due to the commitment of the IJA leadership to implementing superior public financial management systems.

The IJA’s enactment of the Public Financial Management Decree 2014 recognized the Minister and the Ministry of Finance (MoF) as the custodian of IJA financial matters and a legal framework for PFM. Expenditure management procedures and a robust commercial Financial Management Information System (FMIS) have been developed for use by the MoF and all other government bodies. Working closely with Stability Fund, the IJA has also completed an initial review of subnational government revenue and has developed a decree to formalize revenue raising.

In September 2014, the Stability Fund delivered a two week seminar for 25 IJA officials to introduce them to the PFM framework and procedures.  This included staff from line ministries and agencies for the first week, followed by more intensive training for 12 newly-recruited Ministry of Finance staff during the second week.  By the end of the seminar, through a practical, learning-by-doing approach to capacity building, the FMIS was fully operational and the recently-approved Budget for the second half of the 2014 fiscal year had been entered into the system.

The next step, as envisaged in the 2014 Budget, was to formalize responsibility for revenue collection in a new Revenue Administration (The IJARA). A workshop to outline the strategic plan for establishing the IJARA was completed in Kismayo in October. Banking arrangements have been established with Dahabshiil Bank, providing safe cash storage, deposit and withdrawal services, and full transaction reporting.

The IJA’s system features a Budget Classification Structure (BCS) that allows the MoF to control and account for all revenues and expenditures based on the IMF Government Finance Statistics (GFS) framework.  This particularly applies to donor funding provided directly to the IJA, which can be uniquely identified. The use of the donor funds can accordingly be tracked and reported in line with International Public Sector Accounting Standards (IPSAS).

In recent months, the MoF has continued to progress implementation of its PFM framework, with limited technical assistance and support from the Stability Fund. The ministry continues to collect revenue, which is now all deposited in the IJA’s Treasury Single Account (TSA) in Dahabshiil Bank. While a permanent ministry building is being constructed, financed by the Stability Fund, the Minister is operating from secure temporary offices. With just 10 laptops and a reliable internet connection the budget department is now finalising the FY 2015 budget.

The Stability Fund is proud to have had the opportunity to work with the IJA on establishing its PFM framework. The degree of commitment and ownership shown by the IJA, from the President to data entry clerks, bodes well for the future of an administration that will thrive by embracing the principles of financial transparency and accountability, and delivering public services in return for government revenues.

Editorial

It is widely acknowledged that the solutions to Somalia’s instability must come from within Somalia, and the phrase ‘local ownership’ has become a ubiquitous buzzword in the Somalia aid community.  Yet more often than not, the key organisations and leaders that manage development funds are internationals or diaspora.  While there is little question of the important roles that international organisations play and will continue to play in Somalia, there is a challenge to find and nurture Somali-led and Somali-owned entities to set the agenda.

That is why, in addition to its objectives of supporting local governance and reducing conflict, the Somalia Stability Fund is charged with supporting and developing Somali organisations.  Back in January this year, the Stability Fund started the search for capable Somali organisations, with strong people and good ideas that we could support.  We targeted our search around two areas: organisations supporting economic opportunities for young people, and the private sector.  Some 200 applications and months of shortlisting, selecting, negotiating and supporting later, we have selected four successful investments.  In our first newsletter, we’re proud to showcase two of these investments: Somali Green Initiatives & Technology and the Center for Education and Development.

Of course the Stability Fund itself has significant international and diaspora staff within its ranks.  But, we now have a strong permanent presence in Mogadishu, Baidoa and Garowe, and over the last month have travelled the length and breadth of the country from Sanaag in the north to Lower Jubba in the south, in addition to over a dozen paces in between.  We will continue to expand our coverage  and the number of Somali organisations we support.

Ivan Parks
Stability Fund Director

Danwadaag provides a new beginning

A quiet night in the streets of Baidoa ended in turmoil as a huge fire in Baidoa market engulfed numerous stalls and a warehouse. The fire consumed property and stock worth hundreds of thousands of dollars, rendering hitherto low and middle income families destitute. Hundreds of town residents battled the raging fire over three hours but salvaged almost nothing.

Lishwa Nurow Adan, a mother of eight children lost her stock of over $4,700 as well as $14,400 in cash that she kept in the store. “I stopped trusting the bank, when people were cut off from their own money and  Al Barakat bank’s activities was frozen, that is why I kept my money in the shop’’.

Ibrahim Issaaq, married to two wives with ten children, sold shoes, mainly women’s, but also stocked children’s and men’s shoes at the market. “I take over $2,000 worth of shoes from wholesale suppliers on credit, sell the shoes at a profit and pay my supplier’’. He lost his entire stock.

Danwadaag, which means 'common interest sharing', is a community driven development initiative designed to enhance stability and boost recovery in Baidoa. The initiative is led by a task force elected from the community, and supported by Danish Demining Group and the Stability Fund. Though the initiative is aimed at longer-term development activities, understanding the need to take account of immediate needs in the wake of the fire, and in the Danwadaag spirit, the task force held several meetings with the local authorities and the business community to consider ways to assist the affected traders.  A committee of nine members, comprising representatives from the local authority, business community, religious leaders and victims agreed to raise funds from the local community. The community contributed over $33,000 to which the Danwadaag initiative added a further $72,000.

Lisha Nurow Adan received $3,500 USD as cash grant. It did not cover all her losses, but she is optimistic that she can rebuild her humble business. “It has taken me over 12 years to establish the business I lost to the fire, but I can start again.”

 “It is the first time since the fire disaster that I managed to smile“, said Ibrahim Issaaq who also received a cash grant.  His biggest worry was how to pay his creditors. “Now with this amount I can take it to the suppliers and they will lend me shoes worth double the amount.’’

The Stability Fund and Danish Demining Group are committed to enabling the community-led Danwadaag initiative to continue to press ahead with its effort to bring long-term sustainable change, but without losing sight of unforeseen, immediate priorities that come with accidents and natural disasters.

Center for Education and Development

The Center for Education and Development (CED) is a Somali organization that has been working in Somalia since 1992. Based in Mogadishu, CED has branches in the various regions across Somalia.  The organization has promoted sustainable livelihoods through developing and implementing forward-thinking policies in education and community-led-development.

CED has an active and productive partnership with various stakeholders, including the Federal Government, community representatives, local authorities, private institutions and the youth. The organization is currently implementing the Community and Youth Based Economic Recovery and Stabilization (CYBERS) project in newly-liberated areas in Middle Shabelle region.

CYBERS aims to build practical capacity for the youth to generate incomes, centering on agricultural value chains and rural enterprise development skills. Individual skills development activities will be supplemented by provision of business development services, establishment of farming cooperatives and rehabilitation of key public infrastructure assets – canals, feeder roads, water wells and markets.

Through an innovative NGO-private sector collaboration with Somali Green Initiatives & Technology (SOMGIT), CED will support the implementation of SOMGIT’s lease-to-own drip irrigation scheme in the Middle Shabelle region. This enables CED to connect young people to new farming methods, whilst utilizing its close links with the local community to help Mogadishu-based SOMGIT establish trust with its future customers.

With a mix of immediate infrastructure rehabilitation work and farming skills development, the CYBERS program will create short-term employment whilst enhancing local capacity for longer-term, sustainable livelihoods and job creation. The program is also designed to engage youth in the upgrading of public infrastructure assets and in conflict resolution mechanisms to support stabilization and peace building in Middle Shabelle.

The Stability Fund is delighted to be working with CED to help communities in Middle Shabelle to rejuvenate public infrastructure and create new livelihoods via a youth-led development programme. The Fund is also working with CED to improve its financial and other risk management systems in order to assist the organization in attracting more direct funding from donors, instead of relying on sub-contracts from INGOs.

Somali Green Initiatives & Technology

Somali Green Initiatives & Technology (SOMGIT) is a private company based in Mogadishu, Somalia. Founded by Somali professionals, SOMGIT provides innovative drip irrigation systems, greenhouse farming solutions, agro-inputs, and marketing services to farmers in South Central Somalia.

Somali farmers, especially those without access to the traditional flood irrigation systems, rely  on rain-fed agriculture thereby limiting crop production to the rainy season. A delay or lack of rain means potential crop failure.

Access to efficient and reliable irrigation can bring about a step-change in agricultural production and income generation. It provides the farmers with a second cropping season, or even year-round production, liberating farmers from the vagaries of the rainy season. Furthermore, farmers are able to cultivate fruits, vegetables, and other higher-value crops that require consistent water supply. Drip irrigation systems also deliver nutrients, as well as water, directly to the individual plant, reducing the growth of weeds nearby.

SOMGIT’s agro solutions, which include solar-powered water pumps, provide a proven water-conserving, energy-saving and cost-effective system. For example, SOMGIT’s approach yields water savings of over 80% compared to traditional surface irrigation systems.

SOMGIT also has the capacity to develop water resource supplies to farmers, including the drilling of boreholes and development of ponds for farmers to store and channel water. With a reliable water supply in place, SOMGIT delivers drip irrigation equipment, high-quality seeds, fertilizers, and other inputs together with agronomical training and guidance on all aspects of planting, input application, and other farm functions. All equipment and agro-inputs are supplied to the farmers up-front and are subsequently paid for from crop revenues in accordance with a Sharia-compliant lease-to-own scheme.

The Stability Fund is proud to be a partner of innovative Somali businesses like SOMGIT and, in addition to our financial investment, we are providing technical assistance to strengthen its internal financial and management systems in order to prepare the company for future rounds of funding from new investors.

Drop the gun, pick up the coffee

Libah-Har village stands alone in the desert, speckled with tiny huts made from sticks, mud and plant fibre. Goats, camels and sheep graze on dry, brown grass. Life in Libah-Har is confined and entirely dependent on livestock. It does not have a secondary school, healthcare center and other basic human needs to educate nor heal its more than 500 residents. Resources are scarce and conflict over land, water and charcoal continues to destabilize the entire region.

Over 60% of Libah-Har’s population are youths desperate for education and opportunity. Unemployed youths affected by the protracted violent conflict often fall into a life of crime, and those that don’t get involved in crime stay hopeless at home.

Abdiweli was armed as a child. After finishing primary school he turned to crime, working as a footsoldier at illegal checkpoints in Qardho district, northeast Puntland. Recognising an urgent need to give disconnected Somali youth economic opportunities , just over 1,000 youth were engaged through local partner. Of these, more than 800 have received vocational training, with the top performing students receiving small grants to start micro-enterprises and a further 400 participating in an internship programme with small businesses in Puntland.

Abdiweli was one of the recipients, he was offered a grant to start a coffee and confectionary shop. Over 60 people buy coffee from his shop each evening. He is now focused on making his business a success, where he has now enrolled in school to learn business management skills.  With the youth unemployment rate in Somalia amongst the highest in the world, what the youth here lack are investment, resources and opportunity. As Abdiweli proves, an investment targeting youths can go a long way in supporting peace and stability in Somalia.

The Stability Fund, working with CESVI, appreciates the opportunity given by the residents of Libah-Har to work with the youth in the local area to create jobs and businesses. The initiative was recently extended to support additional follow-up activities to help translate skills development into real employment.