Amal Microfinance is socially motivated core banking services and part of the Bank’s overall Corporate Social Responsibility commitments. At Amal Bank, we believe that the poor can fuel the growth of the overall financial industry in Somalia. In fact, responding to unmet demand and combining the Islamic social principle of caring for the less fortunate with microfinance to provide financial access to the poor is strategically necessary for Amal Bank. Moreover, we pride ourselves for being the only bank in Somalia focused on transforming lives and communities while creating visible and accessible initiatives to help economically active people work their way up the economic ladder as reflected in our slogan, ‘Your Future. Our Mission’.

Consequently, to promote financial inclusion, financial literacy/education and micro-entrepreneurship activities in Somalia we launched Amal Microfinance in partnership with International Labor Organization (ILO) and Local Economic Forums (LED) in July 2015. Following a strategic partnership with Central Bank of Somalia (CBS) in 2017, we also launched a $400,000 microfinance program focused on family empowerment targeted at women who are economically active in Somalia. From the pilot phase in 2015, Amal Bank has allocated, disbursed or plan to disburse over $670,000 in interest free loans to different (Women, Men and Youth) economically active people in Somalia.

The objective of Amal Microfinance is to provide complementary services to Amal Bank as we focus on impact-oriented goals and pursue a savings-led approach. We believe successfully integrating a poverty-alleviation platform into regular banking operations and remittance services will give us access to untapped, unbanked and underbanked growing market. This will enable the poor in Somalia to access financial products and services that are consistent with Islamic financial principles in order to transform their lives and communities.

Matching Profits and Social Impact

Our concern for society’s bottom half doesn’t conflict with our bottom line because Amal Bank is not just driven by profit potential, we value social responsibilities too. When it comes to microfinance, we are driven by three bottom lines: financial inclusion (access to savings and credit), financial literacy/education and entrepreneurship activities. Running a commercially viable financial institution that doubles as social and economic change agent is not a mission drift. We believe it’s possible both to make money and provide essential financial services for low-income households and microenterprises—doing well by doing good.

Microfinance in Somalia is still in its infancy, with no financial institution reaching a regional level let alone a national level compared to other countries. Most of the Somali MSMEs struggle to get access to affordable capital due to lack of financial track record, collateral or affordable financial products and services. Accordingly, to achieve what we aspire for or what we believe in and have significant positive development impact, improve access to, and utilization of financial services: