By Goth Mohamed Goth
Hargeisa – September 10, 2025 – In a significant step towards economic modernization, the Central Bank of Somaliland and the International Finance Corporation (IFC), a member of the World Bank Group, today signed a strategic cooperation agreement to develop the nation’s financial infrastructure.
The landmark agreement, signed at the Ambassador Hotel in Hargeisa, officially launches a comprehensive project to establish a Movable Collateral Registry and strengthen the national credit reporting system. A two-day working meeting between the two institutions commenced immediately following the signing ceremony to plan the project’s implementation.
The primary goal of the initiative is to reform the financing system, dramatically improve access to credit for businesses and individuals, and ultimately spur broader economic growth across Somaliland.
Key components of the partnership include:
· Establishing a Movable Collateral Registry: This will allow businesses to use assets like machinery, inventory, or vehicles as collateral for loans, unlocking capital currently tied up in non-land assets.
· Developing a Credit Reporting System: This system will provide lenders with reliable data to assess borrower creditworthiness, reducing risk and encouraging more lending.
· Strengthening the Legal and Regulatory Framework: The project will advise on optimizing the laws and regulations that govern lending and collateral, creating a more secure and efficient financial environment.
Mr. Hamse Abdirahman Khayre, Deputy Governor and Acting Governor of the Central Bank of Somaliland, signed the agreement on behalf of the bank. He emphasized the institution’s commitment to this modernization drive, stating, “The Central Bank of Somaliland is fully dedicated to modernizing the nation’s financial infrastructure. By facilitating access to finance, particularly for our Small and Medium Enterprises (SMEs) and individual entrepreneurs, we are laying the groundwork for sustainable economic development and job creation.”
The project is anticipated to be a catalyst for change, transforming the lending landscape for SMEs—the backbone of Somaliland’s economy. It is expected to drive financial innovation, increase private sector investment, and significantly contribute to the nation’s economic prosperity.
The IFC confirmed its commitment to providing extensive technical expertise and support throughout the project. In turn, the Bank of Somaliland expressed its profound gratitude for the IFC’s ongoing partnership and looked forward to the collaborative execution of this critical national initiative.
The agreement was signed by Mr. Hamse Abdirahman Khayre for the Bank of Somaliland and by Ms. Luz Salamina on behalf of the IFC.
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About the Central Bank of Somaliland: The Bank of Somaliland is the nation’s central bank,responsible for maintaining monetary stability, regulating the financial sector, and promoting a sound and efficient payment system.
About IFC: IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets.We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.
