The Impact of Covid-19 on Microfinance Institutions in Somalia

Year 2023, Volume: 3 Issue: 1, 69 - 84, 15.01.2023

Safıyo Abdıfıtah Shıre , Tawfik Azrak

https://doi.org/10.55237/jie.1146244

Abstract

This study aims to investigate how Covid-19 has affected the microfinance institutions in Somalia. This study employed a qualitative descriptive approach by conducting a case study in Mogadishu and Hargeisa. The data of the study was collected through a questionnaire distributed to microfinance institutions in Somalia in 2021. The paper found that the number of MFIs that have been negatively affected by the epidemic was higher than the number affected positively or naturally. It also found that most MFIs witnessed high credit risks, and more than half of them have reduced lending to less than half due to Covid-19.

Keywords

Islamic Microfinance, Covid-19, Microfinance Institutions, Somalia

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