As 2022 begins, Shuraako continues to provide Nordic Horn of Africa Opportunities Fund loans for businesses in the Somali region that are building markets and livelihoods in several important sectors.
With a focus on companies that provide youth employment and utilize renewable energy, Shuraako recently approved new loans for three companies. Through these investments, Shuraako aims to foster economic growth, create jobs, and promote stability and peace.
ILO Tango is a powdered-drink manufacturing company established in 2002. After the collapse of the light industry in 1991, businesses in Somaliland focused their efforts on importing finished products rather than producing goods locally. An entrepreneur named Hassan noticed that the high demand for fruit-flavored powdered drink mixes outpaced the availability of the then-imported supply and founded ILO Tango to address this gap. ILO Tango sells its products wholesale to retailers, supermarkets, restaurants, and fuel stations.
The company has been in business for 19 years, using the same equipment as the day production began. In addition to the need for updated machinery, ILO Tango has experienced an increase in the demand for its drink mixes. Through a loan from the Nordic Horn of Africa Opportunities Fund, ILO Tango plans to purchase four new machines and raw materials to expand its production capacity.
Farbarwaqo Farm (“the Farm”) is a 40-hectare mixed farm founded in 1999. The farm supplies fruit, vegetables, and milk to hotels, retail spaces, and grocery stores. Additionally, Farbarwaqo sends monthly subscription boxes of milk and crops to eighty households. All of the Farm’s seeds, insecticides, and pesticides are locally sourced, and many pesticides used are natural. Farbarwaqo uses rudimentary farming tools and rents a tractor to cultivate its crops.
The Farm currently relies on both rainfall and a shallow borehole for irrigation. Through a loan from the Nordic Horn of Africa Opportunities Fund, Farbarwaqo plans to construct a solar irrigation system with a 200m deep borehole, reducing the Farm’s dependence on rainfall and ensuring that crops receive irrigation year-round. Additionally, the Farm will erect more fencing, construct two animal sheds and living quarters for employees, and purchase a tractor and delivery van.
Asal Builders LTD
Asal Builders LTD (“ABL”) is a construction and engineering company founded in 2012. ABL is owned and managed by professional engineers and offers rehabilitation construction and architectural consultations. Its customer base consists of businesses, residential homes, government agencies, charities, and non-governmental organizations (NGOs).
ABL rents equipment and storage facilities. The company purchases raw materials from project sites. Additionally, ABL owns the vehicles and scaffolding. However, the company lacks equipment for multiple projects. A recently approved loan from the Nordic Horn of Africa Opportunities Fund will allow ABL to purchase equipment, including a crane.