COMBINING PRODUCTIVITY AND GREEN ENERGY
Hassan Mohamed (see picture), owner of the Kaah Agro Company, runs a flourishing business. Papayas, mangos, lemons, tomatoes, and bananas grow on 25 hectares of land watered by a green and clean irrigation system. Hassan’s earnings enable him to support his family but also to plan future investments and even create jobs.
This promising enterprise has been made possible after Hassan benefited from training and counselling services provided by the newly established Enterprise Development Unit (EDU) in Beledweyne, which is supported by UNIDO.
The extensive assessment of Kaah Agro Company’s operations found that its operational costs were too high, particularly due to the use of a diesel generator. EDU counsellors advised Hassan to install a new solar powered pump irrigation system and provided solutions to acquire the new equipment through the UNDP funded Credit Facility.
“The EDU and the Credit Facility allowed me to fulfil my dream of expanding my operations”, said Hassan.
The new irrigation system combined with improved enterprise management reduced operating costs by 55% and contributes to decrease greenhouse gas emissions.
UN entities carried out activities, in close cooperation with Somali authorities, to develop economic opportunities, particularly for women and youth, while respecting the environment.
Priority was given by the Food and Agriculture Organization (FAO), the International Labor Organization (ILO) and UNIDO to strengthen the governance entities that support productive sectors and small and medium enterprises (SMEs) development.
UN entities trained local teams at the newly established enterprise development unit (EDU) in Beledweyne that subsequently trained and provided business counselling services to dozens of entrepreneurs. As a result, 48 enterprises were either set up or expanded, thus providing a job to 88 persons (see opposite page).
UNIDO worked on the establishment of Special Economic Zones (SEZ), following the endorsement by the Ministry of Commerce and Industry of a strategy paper on the opportunities available to the Federal Government of Somalia to stimulate economic activities through the establishment of SEZ mechanisms. Also, the review of the existing legislation started in October 2021, as it was envisaged to re-establish labour courts in Somalia.
Economic development and diversification included the promotion of energy security and more resilient livelihoods through a gradual reduction in the unsustainable production, trade and use of charcoal. Thus, several awareness campaigns on environmental conservation and promotion of alternative energy solutions to charcoal use were held throughout Somalia reaching out to over two million people including government entities and federal member states officials.
FAO, UNDP, and UNEP supported innovative, sustainable, and environment-friendly energy solutions by providing access to 5,751 households, 30 retailers and two public institutions, a maternity and an orphan college in Garowe, to fuel-efficient stoves, Liquefied Petroleum Gas (LPG) connections and solar systems.
Women’s strong commitment and ownership proved to be key to the successful transition from charcoal to sustainable energy options.
As reported in the 2021 UN Somalia MPTF Annual Narrative Report, under Strategic Priority 3
