AfDB grants $6.6m to boost Somalia’s financial architecture

The African Development Bank (AfDB) approved on Tuesday a $6.6 million grant to bolster Somalia’s capacity to build its financial architecture in order to promote inclusive and equitable growth.

The Somalia Financial Sector Development Project will focus on strengthening key financial institutions, including the Central Bank of Somalia and the Financial Reporting Centre (FRC). Key initiatives include improving credit delivery, implementing anti-money laundering measures, and providing targeted training.

The project aims to address Somalia’s challenges related to security threats and institutional barriers, which have isolated the country from the global financial system.

By aligning with international standards and enhancing financial stability, the grant is expected to improve Somalia’s financial inclusion and attract private investment.

“This is a timely intervention that will enhance governance, accountability, skills, and technology development while fostering private sector growth through regulatory improvements and financial sector development,” said Ahmed Attout, AfDB’s Director of Financial Sector Development.