Mahamoud is 56 years old and lives in Hargeisa City, Somaliland. He is married and has 12 children, two of whom are currently in school while the others study higher education. For the past two years, Mahamoud has been working hard to manage his market in the Sha’ab area of Hargeisa City, in which he built rooms for business purposes. Now he has finished 14 rooms and has a well-organized market, but there are still 10 rooms remaining to be built. He has rented all of the completed 14 rooms and now is working.
To help expand his market and to build the the remaining 10 rooms, Mahamoud has requested a loan of $1,500. The loan will be used to build the other rooms for the market and will help him to generate greater profits and increase his income. Furthermore, it will increase the number of jobs in his market as new businesses will be started up there. He hopes that in the future he will be able to make a large market. Now Mohamoud is on a waiting list and Kaaba will provide him the loan.
More information about this loan
Kaaba is the only nonprofit microfinance institution currently operating in Somaliland, a semi-autonomous region located within Somalia that is not recognized by other countries. By funding this loan, you are helping this borrower to start or expand his or her business in a region with very limited access to credit.
Kaaba has developed loan products in alignment with the cultural context in the primarily Muslim area it serves. To avoid charging interest -- which is opposed to Islamic law -- the organization purchases assets for its borrowers and sells them at a slight markup ranging between 2% and 12%, proportional to the term of the loan.