IslamicFinance.de

MicroDahab MFI, the microfinance subsidiary and corporate social responsibility initiative of the United Arab Emirates-based conglomerate Dahabshiil Group; and SolarGen Technologies, a Somalia-based distributor of renewable energy technologies, have announced a joint energy project in Somalia. The project will allow low-income Somali farmers and entrepreneurs to acquire a “solar-powered water pump” under a “lease to purchase” agreement. The African Enterprise Challenge Fund (AECF), a Kenya-based fund that promotes for-profit enterprises operating in Africa, has provided unspecified support to the initiative. MicroDahab will bear both the capital cost and risk of asset ownership, while its clients reap the benefits of using the water pumps, at minimal rents.