02.03.10
The saving and Loan scheme from the Danish Refugee Council is aimed at lifting the living standards of the beneficiaries while at the same time teaching them how to acquire an independent life.
22 year old Mohamed Abdullahi Mohamed is 22 years old. He was displaced from Mogadishu in 2004 following fierce fighting between rival armed groups. The family went to the north in their search of security and better living conditions. Today Mohamed, his parents, three sisters and one brother lives in Boqolka Buush IDP camp that is one of the biggest in the town of Bossaso.
“Straight from Mogadishu we came to Bossaso. We were looted by gunmen in between the towns of Belet Weyne and Gaalkacyo, but luckily, no one was hurt in the process,” says Mohamed, who is among the dozens of men and women who has since benefited from the Danish Refugee Council’s (DRC) Group Savings and Loans (GSL) scheme through DANIDA funding.
Mohamed is part of a 20-member GSL group. The group received training on savings, business skills and bookkeeping which is run and managed by DRC’s livelihood project. After the training, the group started a saving scheme which requires individual contribution per week.
“Each group member contributes about one US dollar per week. Our weekly saving therefore is 140 US dollar. This is a huge amount which can support us in future. I never had any plans for the future, but now with this saving scheme my living standard and that of my family will definitely change for the better,” says Mohamed, enthusiastically.
After six months of savings, Mohamed’s group received 1000 USD from DRC in form of match grant to group savings contribution, to support the members in starting up an income generating activity. Mohamed and his father are currently jointly running a small kiosk which sells cereals, drinks and other food stuff.
“I am very happy that my life has changed with the help of this scheme. I have been struggling to feed my siblings and support my parents with a little income from my work as a waiter in one of the local restaurants. However, the GSL scheme has improved the quality of life we are now leading,” he adds.
The Group Saving and Loan scheme in Somalia was initiated in 2008 and has benefited total number of 1,318 people that include 918 individuals for Bossaso, 205 and 160 for Galkayo and Gardo, respectively.