The African Development Bank Group (AfDB) has approved a $6.6 million grant to support the Federal Government of Somalia (FGS) in enhancing its financial architecture aimed at fostering inclusive and equitable growth.
This initiative, dubbed the Somalia Financial Sector Development Project, targets the capacity building of key financial institutions, including the Central Bank of Somalia and the Somalia Development and Reconstruction Bank.
The project focuses on improving credit delivery and implementing anti-money laundering and counter-terrorism financing measures. Additionally, it seeks to provide targeted training to bolster financial sector expertise.
Somalia, long hindered by security threats and institutional barriers, has struggled to integrate into the global financial system.
The lack of intermediary banking services has further isolated the country, limiting vital remittance inflows.
By aligning its Anti-Money Laundering/Counters Terrorism Financing (AML/CFT) response with international standards, Somalia aims to better connect with global financial networks.
Ahmed Attout, the Bank Group’s Director of Financial Sector Development, emphasized that this grant will not only enhance governance and accountability but also stimulate private sector growth and improve financial infrastructure across the nation.
