Tarmiye Fund

Local Entrepreneurs Can Now Access Funds

The unique benefits of crowdfunding and equity financing are leveraged through Tarmiye, ensuring that entrepreneurs who are unable to access traditional funds have the support and access they need to get their business off the ground.

Shaqodoon, Premier Bank and HarHub have created the Tarmiye Fund to continue to build on existing efforts in combating chronic unemployment among youth. This new fund, which is one of its kind will support Somali youth entrepreneurs that are unable to access traditional financing mechanisms. Through this fund, these three institutions have harmonize their efforts toward supporting Startups, small business owners, marginalized women and aspiring emerging entrepreneurs through equity financing, mix of Sharia-compliant loans and grants, needs-based training and business development services. The fund aims to create new employment opportunities and contribute to tackling the growing unemployment among the youth population.

Tarmiye Solves Unique Local Challenges

  • Challenges Faced by Young Entrepreneurs

    • Difficulty in accessing suitable loans
    • Short term repayment periods if loans are secured
    • Collateral requirements by financial institution especially for start-ups
    • Limited alternative financing
    • Youth Startups are mostly affected
    • No special fund for youth exists

  • How We're Different

    • Limiting risk to encourage investment for youth
    • No collateral is required for loans below 5,000
    • Increased duration of payback
    • Increased grace period to 90 days
    • Alternative funding options (crowdfund)
    • Special consideration for low income family’s and internally migrated communities
    • Direct business through equity financing

  • Who Will Benefit?

    • Youth between the ages of 15 – 35 years of age
    • Those who have viable business idea to invest in
    • That is ready to build their skills
    • Can raise the require matching funding for their business

Tarmiye Youth Fund

The Tarmiye Youth Fund is a unique funding mechanism that leverages partnerships with Premier Bank (for Sharia-compliant loans) and HarHub (for training and business development services). The Youth Fund aims to accommodate the unique needs of young entrepreneurs, with a special focus on Agriculture, Renewable Energy, and Service Sector. By creating this unique partnership, we ensure flexibility in the path to business creation. The Youth Fund might provide funds through a variety of mechanisms, including:

  • Grants funding for youth and BDS (Shaqodoon)

  • Crowdfunding training and support (HarHub)

  • Equity investment (HarHub)

  • Sharia-compliant loans (Premier Bank and HarHub)

124

Businesses Supported

191

Jobs Created

$433,738

Total disbursed to date

“On the launch of Tarmiye Fund we have decided to put our forces together to create better opportunities for communities in the different districts in Somaliland, Puntland and Somalia this is for them to have an impact in their respective communities.”

— Mustafa Othman, Shaqodoon

Crowdfunding

In Hargeisa, Hargabits targets the youth population from the nearby informal settlement areas, which is a significant portion of the society. These youth are faced with many socio-economic challenges, key among which are lack of education and employment opportunities. These challenges leave these vulnerable youth idle and despaired, which can encourage vices such as drug abuse, or even compel them to join extremist groups or attempt illegal migration. By targeting the root issue of skill development, HargaBits ensures long-term success for both these individuals and the broader community.

1,188

Contributors

18

Campaigns

$47,293

Raised so far

“This program can inspire youth to join entrepreneurship and lead to the fruition of this nations natural resources for business, as well as fighting poverty and the creation of jobs which can help with the illegal immigration.”

— Mohamed Awad, Investment Minister Somaliland

How it works

Young entrepreneurs in Somaliland now have access to a sophisticated funding mechanism, encouraging upward mobility and job creation in the region. The supportive network provides a clear path to success and encourages innovation, by allowing access to entrepreneurs who might not get approved by traditional funding channels.

Partners