MICROCAPITAL BRIEF: Kaah Express, Silatech, American Refugee Committee (ARC) to Launch Kaah Islamic Microfinance Services in Somalia

Kaah Express, a US-based international remittances company, reportedly has partnered with Silatech, a Qatar-based enterprise focused on increasing employment and entrepreneurship among youth in the Middle East and North Africa, and the American Refugee Committee (ARC), a US-based nonprofit that offers humanitarian aid across the globe, to create Kaah Islamic Microfinance Services (KIMS), a commercial microfinance institution (MFI) in Somalia. KIMS is primarily focused on serving low-income youth and women and will operate through Kaah Express’s established network of 12 branches in the country. The services are to include lending under Shariah law, whereby charging interest is replaced with models incorporating the sharing of profit and loss.

According to a statement attributed to Mr Tarik M. Yousef, the CEO of Silatech, “innovative microfinance programs provide a lifeline of opportunity for young entrepreneurs, and the establishment of KIMS will provide greatly needed services to transform the lives of thousands of Somalis” [1].

As of 2014, Kaah Express has operations in Ethiopia, India, Kenya, Somalia, UAE, UK, US and Zimbabwe [2]. Financial information for Kaah Express is not available. As of 2013, Silatech has raised approximately USD 35 million in co-funding for its microenterprise programs. As of March 31, 2013, ARC reported USD 22.1 million in total assets and total liabilities of USD 3.4 million.

By Benjamin Krupp, Research Associate

About Silatech

Founded in 2008, Silatech is a Qatar-based social enterprise aiming to increase employment and entrepreneurship among youth in the Middle East and North Africa. Silatech claims to have fully financed approximately 40,000 youth businesses since 2009 and has projects in 13 countries including Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Palestine, Qatar, Somalia, Sudan, Syria, Tunisia and Yemen. As of 2013, Silatech has raised approximately USD 35 million in co-funding for its microenterprise programs.

About Kaah Express F.S. Inc. (Kaah)

Kaah Express F. S. Inc. is a US-based for-profit international remittances company with operations in the states of Colorado, Illinois, Maine, Minnesota, North Dakota, Ohio and Virginia. Kaah provides money transfer services in Africa to Ethiopia, Kenya, Somalia, and Zimbabwe through 18 branches in the four countries. Financial information is not available for Kaah Express.

About American Refugee Committee (ARC)

Established in 1979 in the US, the American Refugee Committee (ARC) is a nonprofit that provides humanitarian assistance and training in Haiti, Ivory Coast, Kyrgyzstan, Liberia, Rwanda, Sierra Leone, Sudan, Thailand, Uganda and Somalia. ARC provides shelter, clean water and sanitation, health care, skills training, microcredit education, assistance to refugee and internally displaced persons populations. As of March 31, 2013, ARC reported USD 22.1 million in total assets and total liabilities of USD 3.4 million.

Sources and Additional Resources

[1] Zawya: Silatech, Partner Launch Somalia’s First Commercial Microfinance Institution

[2] Kaah Express: Locations

MicroCapital, April 9, 2014: America Refugee Committee (ARC) Sells Liberia-based Liberty Finance to DCRB Investments

MicroCapital, March 4, 2014: Silatech, PlaNet Finance to Support Youth Entrepreneurship in Egypt, Lebanon, Palestine

MicroCapital, July 2, 2013: Silatech, Macroinvest, Jaida, Afif, ANAPEC, IYF, Ministry of Tourism to Support Moroccan Small and Medium-Sized Enterprises (SMEs), Youth

MicroCapital, February 26, 2013: Silatech, American Refugee Committee (ARC), Kaah Express to Offer Microfinance in Somalia

MicroCapital Universe Profile: Kaah Express F.S. Inc. (Kaah)

MicroCapital Universe Profile: Silatech

MicroCapital Universe Profile: American Refugee Committee (ARC)

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