Supporting entrepreneurs impacted by the covid crisis 19
Coronavirus crisis is not only sanitary, it is also economic. Many sectors of the economy have been affected by this pandemic. Some companies have closed down, while others are going through difficult times. The government of Djibouti, with the help of its partners such as the UNDP, has initiated a response to the economic effects of this global crisis by supporting entrepreneurs in their efforts to improve their business performance. This involves supporting entrepreneurs and other sectors of the economic fabric to get through this difficult period. In this regard, a ceremony was held in Arta beginning of march under the leadership of the Center for Leadership and Entrepreneurship, to distribute 2021 patents and grant a support fund for 57 Income Generating Activities.
During his presentation, the context that motivated the implementation of the support program has been recalled. Indeed, the containment measures taken by the government, which were necessary to slow down the spread of the virus, have impacted the entrepreneurial ecosystem and many entrepreneurs find themselves in a situation of cessation of activities following the measures decreed by the government. This confinement represents a considerable loss of earnings for these actors, especially the most fragile.
Ms. Mako Omar Miguil, owner of a hairdressing salon for women in Wea and who benefited from this project told us that this initiative will allow them to relaunch her business that she started in 2017 and which was heavily impacted by the crisis of covid 19. She would like to thank the institutions that have allowed them to have this breath of fresh air and in the future she intends to grow her business.
To face the gravity of the situation, the government has mobilized funds to help the most vulnerable citizens, but also entrepreneurs of small and medium sized entreprises.
It is in this precise context that the Center for Leadership and Entrepreneurshiphas decided to participate at its level in this surge of solidarity, and to commit part of the funds of the Project of Support to the Entrepreneurship of Women and Youth (PAEFJ), to finance the program of support COVD-19 in favor of the 248 AGRs of the project for the promotion of youth employment and handicrafts (PROPEJA), still in activity, at the national level In collaboration with the Djibouti Social Development Agency (ADDS), the program consists of the assumption of the costs of the patent and the provision of support funds of $1,000 per IGA. Ministry of Social Affairs and Solidarity has joined this solidarity movement.
Indeed, the Ministry is deploying a support program coordinated by UNDP and funded by Japan up to $100,000 that aims to strengthen the resilience of youth and support young entrepreneurs affected by COVID 19. This program complements the PROPEJA program by supporting 100 entrepreneurs in the regions of Ali Sabieh and Arta.
The officials present at the ceremony took turns to speak. The President of the Regional Council of Arta, Mr. Elmi Bouh Goudadeh thanked the development partners for their support of young entrepreneurs in the region of Arta. The Japanese Ambassador to Djibouti, H.E. Mr. Umio Otsuka, said that "Japan is committed to supporting Djiboutian youth. It is the small activities that create big business. Toyota and Suzuki were small businesses before they became the multinationals they are today. Japan will continue its contributions to Djibouti's sustainable development as an equal partner and we will continue to work and walk together with the youth of Djibouti. The UNDP Resident Representative in Djibouti, Ms. Fatima Elsheikh added that "the pandemic is a health crisis rather than a disease. Today the companies that are most affected by the pandemic of COVID-19 are small businesses, I want to thank our partners the CLE and ADDS in collaboration with the Embassy of Japan for their contribution to help these young entrepreneurs who are most impacted by the pandemic.
Let's recall that in collaboration with its partners, UNDP supports Djibouti using an integrated approach through COVID-19 preparedness, response and recovery, as part of its mission to eradicate poverty, reduce inequalities and strengthen resilience to crises and shocks.
Finally, the Secretary General of the Ministry of Social Affairs and Solidarity, Mrs. Ifrah Ali Ahmed, closed the different interventions by declaring "that she was proud of this strategic coordination between the CLE and ADDS which has as its own objective to help young entrepreneurs overcome this health crisis. The State and the Government are at your side to accompany you and to face any socio-economic situation".
The ceremony continued with the testimonies of the beneficiaries of PROPEJA who were keen to emphasize the importance of this approach to support businesses affected by COVID 19 and ended with the official handover of the patents for the year 2021 as well as the support funds that will be transferred via the CPEC Djibouti represented by its administrator, Mr. Omar Ibrahim Omar. The total amount is 57,000 dollars or about 10,117,000 DJF in favor of the 57 entrepreneurs of the Arta region.
