"Financial stability forms the foundation of Somalia's economic recovery."
Somalia's financial sector has advanced markedly in recent years, moving toward greater stability, inclusion, and connection to the global economy. After decades of institutional collapse, the country rebuilt core financial bodies, restored regulatory capacity, and strengthened the foundations of macro-financial stability. The CBS stands at the center of this transition, restoring trust in the financial system and steering the country toward a modern and resilient financial architecture.
A major milestone arrived in 2025 with the enactment of the new Anti-Money Laundering and Countering the Financing of Terrorism law. The revised Financial Institutions Law strengthens the licensing and supervisory authority of CBS, while the National Takaful Act 2025 introduces a regulatory framework for Islamic insurance providers. Working with the National Identification and Registration Authority, CBS connected electronic know-your-customer systems to the national identification database through the Hubiye e-KYC platform.
CBS also modernized Somalia's financial infrastructure. A decade ago, the country lacked basic national payment and clearing systems. CBS closed that gap through a modern payments ecosystem, starting with the National Payment System in 2021. In 2025, CBS launched the Somali Instant Payment System, enabling real-time payments between banks and mobile wallets, cutting settlement times, lowering costs, and widening access.
Yet structural vulnerabilities persist. Credit remains concentrated in short-term trade financing, while productive sectors receive limited lending. Markets stay shallow, domestic capital markets remain absent, and systemic risk can arise from heavy remittance dependence, global shocks, and gaps in supervision. The planned reintroduction of the Somali shilling under a currency board arrangement demands strong macroeconomic discipline, credible reserve management, and robust financial infrastructure.
