Mogadishu, Somalia – The Central Bank of Somalia (CBS), in collaboration with the International Finance Corporation (IFC), has officially launched a Credit Infrastructure Project aimed at modernizing the country’s financial sector. The initiative introduces two key systems — a Credit Information System and a Collateral Registry — both of which will be hosted by CBS.
The Credit Information System will enable financial institutions to share and access borrowers’ credit histories, helping lenders make more informed decisions and reduce the risks associated with lending. The Collateral Registry will provide a centralized platform where movable assets pledged as collateral can be recorded, giving businesses and individuals greater access to credit by expanding the range of assets that can be used to secure loans.
The partnership with IFC reflects a broader effort to strengthen Somalia’s financial infrastructure, encourage private sector growth, and enhance confidence in the banking system. The project is designed to improve credit risk management and support macroprudential oversight, which are essential steps toward building financial stability in the country.
By laying the groundwork for a more inclusive financial system, the reforms are expected to make it easier for small businesses and entrepreneurs to obtain financing, thereby stimulating economic development. The Credit Infrastructure Project forms part of Somalia’s wider reforms to modernize its financial sector, attract investment, and integrate into the global financial system after decades of instability.