Somalia is experiencing a surge in entrepreneurial activity, driven by a youthful population and a burgeoning spirit of innovation. Recognizing this potential, SIMAD Innovation Lab, in collaboration with Direct aid and Premier Bank, is proud to announce the commencement of the LEAP Microfinance Program Cohort 1. This groundbreaking initiative is designed to empower aspiring entrepreneurs by providing access to critical resources, including Sharia-compliant microfinancing, expert mentorship, and comprehensive business development support. With this program, entrepreneurs will gain the tools and guidance needed to turn their bold ideas into thriving enterprises, driving innovation and economic growth in Somalia.

Why LEAP Microfinance?

Somali youth are brimming with innovative ideas and entrepreneurial spirit, yet access to finance remains one of the biggest hurdles. Formal banks often require collateral or focus on established businesses, leaving students and startups underserved. Recognizing this challenge, SIMAD University developed the LEAP Microfinance Program as a solution. By offering Sharia-compliant, interest-free loans, LEAP directly addresses the financial barriers that hinder early-stage startups and idea-stage ventures.

LEAP also integrates capacity-building programs and personalized mentorship to empower entrepreneurs with essential skills such as financial management, marketing, and operational planning. This comprehensive approach ensures that our students are equipped to succeed, scaling their businesses effectively while contributing to Somalia's economic transformation.

SIMAD University: Building an Innovation-Driven Somalia

For over two decades, SIMAD University has been at the forefront of shaping Somalia’s future leaders. Through its flagship initiative, SIMAD iLab, the university has cultivated an environment where creativity and entrepreneurship thrive. SIMAD iLab has incubated over 500 startups, helping them secure funding, refine their strategies, and achieve significant milestones. The LEAP Microfinance Program builds on this success, focusing on key sectors vital to Somalia’s economic growth, including:

• Agribusiness: Enhancing food security and modernizing agricultural practices.

• Renewable Energy: Addressing energy challenges with sustainable solutions.

• Creative Industries: Supporting arts, media, and cultural entrepreneurship for economic diversification.

• Manufacturing: Creating local industrial solutions to drive self-sufficiency.

Our mission is deeply rooted in empowering our students and alumni to lead Somalia into a prosperous future.The LEAP Microfinance Program aligns with this vision by equipping our graduates with the resources to transform their academic knowledge into impactful businesses, encouraging youth innovators to address local challenges with creative and sustainable solutions, and providing aspiring entrepreneurs with a structured pathway to turn ideas into scalable ventures. By fostering innovation and entrepreneurship, the program contributes to the broader goal of building a resilient and diversified economy in Somalia.

With a $1 million fund, LEAP will support 20 high-potential startups each year, offering interest-free loans ranging from $5,000 to $15,000. The program’s ultimate goal is to:

• Foster Innovation: Support the development of innovative and sustainable businesses across key sectors, including agribusiness, renewable energy, technology, fisheries, and creative industries.
• Create Jobs: Stimulate job creation and economic growth within the Somali community.
• Empower Graduates: Equip our graduates with the knowledge, skills, and resources to achieve their entrepreneurial aspirations.
• Promote Financial Inclusion: Provide access to Sharia-compliant microfinance solutions to support business growth and development.
• Drive Sustainable Economic Development: Promote sustainable and inclusive economic growth within Somalia.

What Does Cohort 1 Offer?

• Financial Support: Access to interest-free loans tailored to support business growth.
• Comprehensive Training: Acquire essential business skills, including marketing, financial management, and operations.
• Expert Mentorship: Receive guidance from experienced entrepreneurs and industry leaders.
• Incubation and Acceleration: Access to incubation and acceleration services to nurture ideas into scalable enterprises.
• vibrant community: Become part of a dynamic community of fellow entrepreneurs, fostering collaboration and knowledge sharing.
• Focus on Impact: LEAP prioritizes businesses with the potential to create jobs, foster economic growth, and promote sustainable development within Somalia.

Eligibility Criteria:

To be eligible for the LEAP Microfinance Program, applicants must:

• Be a graduating senior or recent graduate within the past 3 years of SIMAD University or an alumnus of the SIMAD iLab.
• Possess a dedicated team of at least 3 members with clearly defined roles and responsibilities.
• Have a proven product or service with 
• Demonstrate a well-defined business plan including:
• Market analysis
• Financial projections
• Marketing and sales strategy
• Operational plan
• Demonstrate strong financial viability, including:
• Positive cash flow projections
• Healthy debt-to-equity ratio
• Commit to sustainable and ethical business practices
• Operate within one of the following priority industry sectors:
• Agribusiness
• Fisheries
• Renewable Energy
• Technology
• Creative Industries

Application Process

The application process is structured to identify and support the most promising business ideas:

1. Application Submission: Interested candidates should submit their applications through the LEAP application portal.
2. Initial Screening: Applications will be reviewed based on the potential and viability of the business idea.
3. Incubation Program: Shortlisted applicants will participate in a 2-4 week incubation program to refine their business plans and strategies.
4. Pitch Day: Participants will present their business ideas to the LEAP Committee for funding consideration.
5. Funding & Mentorship: Selected businesses will receive financial support and ongoing mentorship to aid in their growth and development.

Repayment Terms

• Grace Period: A 6-month grace period before loan repayments commence, allowing businesses to establish a stable foundation.
• Repayment Period: A flexible 4-year repayment plan designed to accommodate business growth trajectories.

Cohort 1 at a Glance

• Number of Startups will be Supported: 20
• Loan Amounts: $5,000 to $15,000 per venture
• Duration of Incubation: 2-4 weeks
• Key Focus Areas: Agribusiness, Renewable Energy, Manufacturing, Technology, Fisheries, and Creative Industries

Stay Updated!