Somali Business Catalytic Fund
DAI is managing the World Bank funded Somali Business Catalytic Fund (SBCF) program across the Somali peninsula. The objective of the fund is to boost economic growth by funding the establishment and expansion of profitable businesses.
Specifically the purpose of the fund is to catalyse Somali entrepreneurship into businesses which provide long-term benefits to the economy and boost economic growth by:
- Establishing and expanding profitable products that are new to the region or that substitute for Imports, and that create linkages to other local producers
- Boosting business productivity through funding the development of domestic business and technical services and providing productivity models to other business
- Stimulating linked sectors such as financial services to increase financing of business
SBCF is part of the Somali Core Economic Institutions and Opportunities Program (SCORE). The objective of this program is to set favorable conditions for overall business growth. SBCF will be complemented by Small and Medium Enterprise Facility (SMEF), which represents the technical assistance arm of the program.
SBCF Key Facts
FUND SIZE: $10.5 Million for all three regions: South Somalia, Puntland, and Somaliland
REGIONAL ALLOCATION: South Somalia & Puntland (67%), Somaliland (33%)
TARGET SECTORS: Agriculture, Livestock, Fisheries, Manufacturing, Food Processing, Construction, Commercial & Business services, women owned enterprises, youth organisations encouraged to apply
TYPES OF INVESTMENT EXPENDITURE: Machinery, equipment, materials, business & technical services
FUNDING WINDOWS: Two or three Rounds dependent on Funding from Donors: DFID, DANIDA
GRANT SIZE: SMALL GRANTS $10,000 - $50,000, LARGE GRANTS $50,001 - $150,000
SUBSIDY LEVEL: Co-investment of at least 50% for small grants; Co-investment of at least 100% for large grants
IMPLEMENTATION TIME-LINE: July 2016- June 2018 for two rounds