MICROCAPITAL BRIEF: Silatech, Gojo Partner to Provide Digital Finance to Youth-led Enterprises in Cambodia, India, Sri Lanka

The Qatar-based social enterprise Silatech recently launched a three-year partnership with the Japanese microfinance investor Gojo & Company with the aim of supporting 90,000 youth in Cambodia, India and Sri Lanka with digital financial services to facilitate the founding and expansion of micro-, small and medium-sized enterprises (MSMEs). Among the strategies of the partnership is to lend with more flexibility regarding collateral and financial records, both of which have become more difficult to provide during the COVID-19 pandemic.

“We are very excited for this collaboration as we strongly believe in the power of digital solutions and more specifically financial solutions in tackling the global rising issue of youth unemployment,” said Silatech CEO Hassan Al Mulla. “Creating inclusive access to financial services contributes to improving the livelihoods of the most vulnerable youths and allows young people to take control of their future and independently respond to societies’ needs.”

The goal of Silatech is to increase employment and entrepreneurship among youth. From 2008 through 2018, the firm reports having financed approximately 1.3 million youth-operated businesses in the Middle East and North Africa. As of 2018, Silatech had raised approximately USD 659 million in co-funding for its microenterprise programs. More recent data on the entity is not available. Silatech was founded in 2008 by Sheikha Moza Bint Nasser of Qatar.

Founded in 2014, Gojo holds stakes in nine microfinance institutions (MFIs) in India, Cambodia, Myanmar, Sri Lanka and Tajikistan. Among its goals is to act as a “‘private sector World Bank’ providing financial access for 100 million people on every continent by the year 2030.” In particular, it plans to focus on Asia before expanding to Africa in 2023 and Latin America in 2026. As of December 2021, Gojo reported holding assets of USD 517 million.

By Saulius Simonas Ramanauskas, Research Associate

Sources and Additional Resources

The Peninsula Qatar article
https://thepeninsulaqatar.com/article/10/09/2022/silatech-launches-project-to-support-89000-youths-in-cambodia-india-and-sri-lanka

Gojo & Company homepage
https://gojo.co

Silatech homepage
https://silatech.org

Previous MicroCapital brief on Silatech
https://www.microcapital.org/microcapital-brief-silatech-develops-crowdfunding-website-narwi-for-shariah-compliant-microfinance-in-middle-east-north-africa

More MicroCapital news on Gojo
https://www.microcapital.org/?s=gojo

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