AfDB Group approves $6.6m grant to strengthen Somalia’s financial architecture for inclusive growth
Business
THE African Development Bank Group has approved a $6.6m grant to support the Federal Government of Somalia, FGS, in strengthening state capacity to build its financial architecture in order to promote inclusive and equitable growth.
The Somalia Financial Sector Development Project will focus on improving the capacity of financial institutions, including the Central Bank of Somalia, Somalia Development and Reconstruction Bank, and the Financial Reporting Center, FRC, to formulate efficient credit delivery, and to implement anti-money laundering and counter-terrorism financing measures. It will also enhance financial sector expertise through targeted training and assistance.
The reforms seek to build a competitive and globally connected financial sector in Somalia, enhancing stability, trust, and financial inclusion, and attracting private investment.
Somalia has long grappled with security threats from armed groups that depend on illicit financing. Strengthening its financial institutions is therefore crucial for its stability and that of the wider horn of Africa region. Integration into the global financial system has been hindered by insecurity as well as institutional barriers. The absence of intermediary and correspondent banking services has further isolated the country from international financial networks, limiting critical remittance inflows.
Strengthening the country’s Anti-Money Laundering/Countering Financing of Terrorism, AML/CFT, response, and bringing it in line with international standards will enable the integration of Somalia into the global financial architecture.
“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, the Bank Group’s Director of Financial Sector Development.
“This will also build robust national financial systems that offer increased long-term finance availability, reduced intermediation costs, and improved financial infrastructure.”
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
A.I
A.I
Sept. 18, 2024
Related Posts
UBA appoints Ugboh as independent non executive director
AFRICA'S Global Bank, United Bank for Africa (UBA) Plc, has announced the appointment of Henrietta Ugboh as an
Read MoreStock market opens bullish, gains N84bn
THE Nigerian Exchange Ltd. (NGX) on Monday opened the week positive with N84 billion profit added to the portfolios of...
Read MoreDangote: ECCIMA blames continuous Naira depreciation to low local production
ENUGU Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has blamed the continuous depreciation of the Naira to low local...
Read MoreMost Read
Subscribe to Our Newsletter
Keep abreast of news and other developments from our website.