Guricel and Mataban, Somalia, May 23, 2024 – At the heart of Diriye Hassan village, 40km north of Guricel town, sits a large tea shop under an umbrella tree. The tea shop bustles with activities daily and on an ordinary day, one might mistake it for the village center. But that could not be further from the truth.

Barlin Ahmed Hanshi, 30, owns the tea shop. She stands as a testament to the power of collective saving and entrepreneurial spirit. As a beneficiary of the GFFO-funded cash transfer program, implemented by WARDI in partnership with Caritas, Barlin’s journey began with a modest sum that sparked a significant transformation.

“Immediately I received the money, myself and 9 other women came together and we started table banking to help us save more,” Barlin recalled.

This simple yet effective practice allowed her to save enough to boost her tea shop and eventually start a small boutique. Selling clothes for men, women, and children, Barlin’s boutique has reduced the long and tedious journey to Guricel town and back, saving the community both time and money.

The Unconditional Cash Transfer Program

WARDI’s unconditional cash transfer program pays beneficiaries $70 a month to complement their household income. The funds are sent directly to the beneficiaries via mobile money transfer to remove brokers and middlemen and discourage aid diversion.

“Three months later, it was my turn to take the money. The money was a lot and I wanted to do something that could continue to give my family sustenance. So, I opted to invest it to expand my business,” she says.

Table banking is the sole financial system known to most people living in remote areas of Somalia. Banking and established financial systems are unavailable, and despite the associated risks, this traditional form of banking has improved the lives of many women in the country.

“Women are the financial planners in our community. They may not be the breadwinners but they sure know how much they need to use and what they need to save for a rainy day. They are simply the backbone of society,” believes Project Manager Omar Ahmed.

Most men and women gather under the thick shade of the umbrella tree reinforced with a Somali hut on the sides to relax and sometimes discuss business as they enjoy a cup of tea. As she sways her long legs to maneuver around her busy tea shop and small boutique, she charms her customers with her absolute conservative nature coupled with a warm smile that makes everyone feel at home. For her, a busy shop means more profit, and the more the profit, the more she can improve her life and her children’s.

Despite the modest sales, Barlin finds contentment and stability in her efforts. She manages to repay small loans taken to restock her boutique, and the profits help her support her children’s education.

“WARDI has done miracles for us. We welcome them to continue to support the vulnerable members of the community,” she added with a smile.

Funded by the German Foreign Federal Office in partnership with Caritas, the unconditional cash transfer program is an economic intervention initiative of WARDI’s GFFO project, a food security and livelihoods project that aims to reduce the shocks of climate-related disasters in Guricel and Jalalaqsi district.

An Inspirational Entrepreneur

The mother of six has become a source of admiration for many women and girls in the village. Two kilometers away, Wiilo Mohamed Elmi has followed in the footsteps of Barlin. The 35-year-old mother of three is a proud business owner thanks to the GFFO unconditional cash transfer program.

She also saved her funds through table banking and the traditional merry-go-round financial system, eventually allowing he to open a small shop where she sells household items. From maize four to rice to sugar and tea leaves, she has it all. This humble enterprise now sustains her family, allowing her to provide food for her children and cover their school fees.

Her belief in the power of education is unwavering, and she is hopeful that her children will have a brighter future.

“This program has improved our living standards. In addition to complementing my household income, I use the money I make from the shop to educate my children,” Wiilo said.

The Transitional Aid Project

In the neighboring Mataban district, Cel Dhinle village, the impact WARDI’s activities is similarly overwhelming. Sharifo Hassan Elmi is a beneficiary of the Transitional Aid (TA) project.  The mother of 13, faced the daunting task of providing for her large family when her husband fell ill. With support from WARDI’s cash transfer program, she saved $210 through table banking in three months and opened a stall in the village where she sells clothes, vegetables, snacks and tea.

“My husband is sick and cannot fend for our large family as he used to,” she continued, “So, I use the income I get from this shop to feed my family.”

The Transitional Aid project, funded by Caritas and implemented by WARDI, also promotes garden farming and supports farmers with drought-resistant seeds and tools, further empowering communities to achieve food security.

According to the World Bank, 50 percent of the population in Somalia presently requires humanitarian assistance. This population – estimated at 8.25 million people –  is affected mainly by drought and floods, which have also caused the loss of four million livestock and crop harvests, eroding the primary source of livelihood, income, and nutrition for pastoralist communities.

The GFFO and TA projects target the most vulnerable in society—those who are marginalized, disabled, elderly, or otherwise disadvantaged. By sending monthly cash transfers directly to beneficiaries via local mobile money platforms, WARDI ensures transparency and efficiency, eliminating middlemen and reducing the risk of aid diversion. These projects focus on food security and livelihoods, aiming to empower communities to become self-sufficient and resilient.

Despite the progress made, the road ahead remains challenging. The beneficiaries of these initiatives continue to face obstacles such as limited access to larger markets and ongoing vulnerability due to external factors such as climate change and economic instability. Continued support from donors and partners like GFFO and Caritas is crucial to sustaining this invaluable momentum.

“The impact can be felt but the threat is imminent. We need more support to ensure families affected by climate-related disasters find sustainable sources of income to improve their lives,” adds Omar Ahmed.

The impact of these programs is not limited to the immediate beneficiaries. As they rise economically, their families, communities, and even the larger society stand to benefit. Their children receive better education, their families enjoy improved nutrition, and the local markets flourish as small and medium businesses thrive.

By supporting women through cash transfers and community banking, WARDI and its partners are not just changing individual lives— we are paving the way for a more prosperous future for all.

For media inquiries, please contact;
Ubah Bulle, Communication and Fundraising Manager, WARDI via ubahbulle@wardirelief.org
or
Musa Salah, Communication Officer, WARDI via communications@wardirelief.org