The Somalia Financial Sector Development Project will also enhance financial sector expertise through targeted training and assistance, AfDB said in a statement on Monday.
The project will focus on improving the capacity of financial institutions, including the Central Bank of Somalia, the Somali Development and Reconstruction Bank and the Financial Reporting Centre, to create efficient loan delivery and implement anti-money laundering and counter-terrorism financing measures. Can go. Xinhua news agency gave this information.
"It will also build a stronger national financial system that will offer increased long-term finance availability, lower intermediation costs and improved financial infrastructure," said Ahmed Atout, director of the AfDB's Financial Sector Development Department.
According to the AfDB, Somalia has long struggled with security threats from armed groups dependent on illicit financing, and strengthening its financial institutions is critical to its stability and the broader Horn of Africa region.
The AfDB said the reforms aim to build a competitive and globally connected financial sector in Somalia, enhance stability, trust and financial inclusion, and attract private investment. “This is a timely intervention that will enhance governance, accountability, skills and technology development while promoting private sector growth through regulatory reforms and financial sector development,” Atout said.
According to the Bank, institutional barriers, as well as insecurity, have made Somalia's integration into the global financial system difficult.
The absence of intermediary and correspondent banking services has isolated the country from international financial networks, limiting significant remittance flows.
The project will focus on improving the capacity of financial institutions, including the Central Bank of Somalia, the Somali Development and Reconstruction Bank and the Financial Reporting Centre, to create efficient loan delivery and implement anti-money laundering and counter-terrorism financing measures. Can go. Xinhua news agency gave this information.
"It will also build a stronger national financial system that will offer increased long-term finance availability, lower intermediation costs and improved financial infrastructure," said Ahmed Atout, director of the AfDB's Financial Sector Development Department.
According to the AfDB, Somalia has long struggled with security threats from armed groups dependent on illicit financing, and strengthening its financial institutions is critical to its stability and the broader Horn of Africa region.
The AfDB said the reforms aim to build a competitive and globally connected financial sector in Somalia, enhance stability, trust and financial inclusion, and attract private investment. “This is a timely intervention that will enhance governance, accountability, skills and technology development while promoting private sector growth through regulatory reforms and financial sector development,” Atout said.
According to the Bank, institutional barriers, as well as insecurity, have made Somalia's integration into the global financial system difficult.
The absence of intermediary and correspondent banking services has isolated the country from international financial networks, limiting significant remittance flows.
