Loan from MicroDahab MFI helped me install solar power and cut off diesel costs

Ahmed Warsame Farah is a crop farmer in the Gabiley region of Somaliland. He produces a range of vegetables, including tomatoes, onions, and capsicum. Owing to intermittent, unpredictable rains, Ahmed irrigates his farm thanks to a river located about 500 metres away. However, Ahmed says, fuel costs almost forced him to quit farming.

“There were days I thought of giving up,” Ahmed recalled. “Most of what I earned went into buying fuel. It just didn’t make sense anymore.” But things changed when he learned about a loan facility from MicroDahab MFI, an implementing partner for FIG-Somalia.

“I approached them and they advanced me a loan, which enabled me to buy and install solar panels, which generated electricity to power the pump generator,” says Ahmed. Since Gabiley receives sufficient sunshine almost year-round, Ahmed does not have to worry about irrigating his farm.

“My expenditure has significantly reduced, and profit margins have risen by 40%.”

Ahmed now earns up to $1200 per month by supplying fresh produce to markets and individuals in Gabiley. The benefits have extended beyond his own family. Ahmed has been able to employ two additional workers to help with cultivation, harvesting, and transportation, creating livelihoods for others in his community.

His farm now supplies a regular flow of vegetables and fruits, contributing to local food security and income generation in the region. He adds that the loan process was simple.

“I pay back the loan every month without any difficulties because the farm is generating good income,” Ahmed states.