Digitization of banking system to shape Somalia’s economy

MOGADISHU, Somalia - The digital revolution in the banking system would significantly boost Somalia’s socio-economic fortunes at the time the country is undergoing massive economic recovery, engineered by the stable security witnessed in many regions.

The National Digital Identification programme is expected to enhance banking services in the country following partnerships between the National Identification and Registration Authority (NIRA) and the Somali Bankers Association (SBA).

Abdiwali Tima'adde, the NIRA Director General, said the new partnership would help in aligning businesses with global standards besides reducing financial risks associated with the analog system that encourages fraud and money laundering.

“The partnership’s agenda also includes discussions on the implications of this collaboration, the strategic plan to bring registration and National ID issuance closer to the public, and the critical contributions of key stakeholders in driving economic development and ensuring access to modern, secure financial services that comply with international standards,” said Mr Tima'adde.

According to Tima'adde, the collaboration would see integration of the national Identification Card with the banking systems across the country which would boost financial security and economic growth in the Horn of Africa nation.

This achievement he said, would not have been possible without the generous support of the World Bank, whose contributions have been crucial in the successful implementation of the Somali National ID system.

Salah Jama Ahmed, the country's Deputy Prime Minister, said centralization of the national registry for the Identification Cards is currently underway, adding that once in place, it would shape Somalia’s economy with global financial systems.

The country is also fighting Al-Shabaab and the integration would help in taming financiers of terrorism. Two years ago, Somalia closed over 250 bank accounts whose owners were suspected of dealing with the Al-Shabaab militants, with over 70 mobile money transfer firms also affected.

GAROWE ONLINE