Entrepreneurship and Social Influence – Women Reshape Structures in Somaliland

Across Somaliland, women are forming their own groups, which operate as lending circles. Besides financial support, these women provide each other with emotional support and friendship.

“We support each other when someone’s daughter gets married, when someone falls ill, and when a family member passes away. We sit around one table, share everything, and learn a lot. It unites us.”

This is how restaurant entrepreneur Ayaan Elrahmaan Yusuf describes the activities of women’s groups in Somaliland. She feels that there is a deep connection between the members of the group. We interviewed the women in these groups about their experiences with lending and savings groups.

Women’s groups have changed the lives of many families on multiple levels. Through these groups, women have the opportunity to start their own small businesses, as members pool money into a common savings fund and lend it to each other. In Somaliland, working is not a given for women, who are usually responsible for taking care of the home and children.

The groups are crucial for many women, especially for those living as internally displaced persons, who often find it nearly impossible to save enough money on their own to start a business. The groups offer women lessons in literacy, running a business, and a new social support network they can rely on and seek advice from.

Opportunities for All to Own a Business

The groups are organized into three levels. The first level is often a savings and lending group consisting of 15-20 women. The second level, the network, comprises about ten savings groups. All the networks in the area form the final level, the umbrella association, which manages and supports the smaller groups in the region.

The lending groups operate by having members pay a certain amount into a common fund every month. From these funds, small loans and grants are given out, for example, in cases of illness.

When a larger sum of money has been accumulated in the account, the group selects one member to whom the money is loaned. She can use it to start or develop a business, or for herself and her family.

A woman who receives a loan often goes to the market to buy goods or groceries, which she then sells to other group members or her neighbors.

“This is how small businesses get started. The same process is repeated until each of the twenty women has their own business,” says Hinda Gaunuug Jamac, chairwoman of one women’s group. She herself owns a kiosk in Hargeisa. The most common businesses owned by women are various shops, kiosks, and restaurants.

Networks Address Community Needs

The second level of women’s groups focuses on other social services rather than loans. They take care of hygiene, sanitation, safety, and children’s school uniforms.

The group has subcommittees that influence local issues. Each subcommittee has its own topic, such as children’s rights, women’s rights, and education. They have a direct connection to the administration, where they can report, for example, the needs and deficiencies of an internally displaced persons camp.

The groups also aim to help young people at risk of radicalization and intervene when armed groups try to recruit young men. They find out what matters to these men, and if school appears important, the group can ask the school principal to allow the young person to attend school for free.

Spreading Knowledge Reduces Gender-Based Violence

The network also aims to raise awareness about gender-based violence and female genital mutilation (FGM). The groups hold trainings twice a month, where they discuss the harmful effects of FGM. These trainings share information, but also involve discussions, debates, and reflections on differing opinions.

“We invite men from different walks of life to the discussions. Teenagers, middle-aged men, and elderly men. We talk to them about how gender-based violence affects not only women but also them,” says Raaho Dirie, chairwoman of one women’s group.

Women report that men were initially opposed to the lending groups. Over time, as women’s businesses started generating income, opinions changed. The groups help families in many ways besides financial support. Men no longer oppose the groups but participate in trainings and activities themselves.

Women feel that gender-based violence has decreased thanks to the trainings. Attitudes towards FGM have also changed. As more people learn about the dangers of FGM, more parents decide not to subject their children to it. Gradual changes are observable within communities.

Knowing Where Help Is Needed Is Crucial

Women believe that networking is the greatest benefit the groups have brought them. “We know each other. We know exactly which family can’t afford three meals a day. We know which family’s children can’t go to school. We know who can’t access healthcare services. Now we can help better,” says Khadra Abiib, chairwoman of one women’s group.

Women’s groups have a broad understanding of who needs help, what kind of help is needed, and the issues and needs in the area. They also have a good understanding of the services available. This enables them to more easily connect those in need with the necessary services and influence decision-makers to get the right kind of help.

“Before, we didn’t know each other. Now we have thousands of members, and everyone knows each other. There is a great connection between us.”

Photos: Nafkot Gebeyehu