Somali government, in partnership with the World Bank through the HoA DRIVE Project, launched a $10 million Livestock Value Chain Fund (LVCF) on Thursday to transform the country's livestock sector.

Gargaara Company Limited hosted the signing ceremony at Jazeera Palace in Mogadishu. The initiative addresses the challenges pastoralists, livestock producers, processors, exporters, and traders face.
 

The Livestock Value Chain Fund is designed to de-risk private investment, support local productive capacities, and encourage private sector involvement in building a more resilient, sustainable, and profitable livestock value chain.

Director General of the Ministry of Finance, Suleiman Sheikh Umar, emphasized that the initiative underscores the federal government's commitment to creating an inclusive economy. He noted the fund's potential to empower the country's pastoralist communities, reduce climate vulnerabilities, and stimulate economic growth.

"The partnership with Gargaara and the PFIs will ensure that these investments reach those who need them most," the Director General added.

The CEO of Gargaara Suleiman Dualeh highlighted the fund's potential to transform the sector: "The Livestock Value Chain Fund is more than just a financial tool—it is a catalyst for transformative growth. By reducing financial barriers and providing risk-sharing mechanisms, the fund will ensure that pastoralists and businesses at all levels of the value chain can thrive and innovate."

Director General of the Ministry of Livestock, Forestry, and Range, Mohamed Omar Nur, emphasized the sector's broader significance. "Somalia's livestock sector is not just an economic driver; it is a way of life for millions. The LVCF ensures that pastoralists, who are the backbone of this industry, receive the financial and technical support they need to navigate modern challenges and access broader markets," Nur explained.

Sonia Plaza, HoA DRIVE Somalia Project Task Team Leader at the World Bank, commented: "The fund's de-risking approach is an important step toward enabling private investment in sectors that have traditionally been underserved. It strengthens our vision of a regional livestock economy that is resilient, sustainable, and inclusive."

The private sector representatives also expressed confidence in the initiative's potential to build a more profitable livestock value chain.

"This agreement we signed with Gargaara will benefit people who depend on livestock production chains, and as KIMS, we are ready to participate in the development and encouragement of this sector, as it is a sector on which the Somali people depend heavily," the representative of KIMS Microfinance, Faysal Mohamed Hassan told HOL.

Somalia's livestock sector plays a critical role in the country's economy, accounting for approximately 80% of export revenues and sustaining the livelihoods of millions of pastoralists.

However, limited access to financing, high investment risks, market instability, infrastructural deficiency, and climate challenges have constrained its potential.

Source - https://www.hiiraan.com