“Islamic microfinance system will poverty alleviation in Somalia”
Despite the many benefits, microfinance institutions face a range of challenges that limit their reach, especially in predominantly Muslim countries. One challenge is providing microfinance services under sharia, or Islamic law, which restricts the charging of interest for loans.
The Somali Development Development and Reconstruction Bank would like to offer micro financing investments to small and medium enterprises in both urban and rural sectors in Somalia, which will enhance to achieve economic development and social stability.
The Bank started microfinance service 17th Districts of Banadir Region; there are other pilot projects of microfinance that will release in coming weeks . SDRB also used Micro financing method IDPs relocation to M. Shabelle Region.