Mogadishu, Somalia – Somalia’s Ministry of Finance has officially launched its Public Finance Management (PFM) Digitalization Program, marking a landmark step toward modernizing financial governance and ensuring transparency in the country’s public sector.
The initiative, unveiled this week in Mogadishu, introduces a secure digital signature system that will gradually phase out paper-based financial transactions. Officials said the reform is expected to streamline government processes, reduce fraud risks, and build greater trust in state institutions.
“This rollout demonstrates Somalia’s commitment to building a transparent, paperless, and efficient financial system that meets international standards,” a senior ministry official noted during the launch event.
The PFM Digitalization Program is part of broader financial sector reforms designed to strengthen accountability, improve service delivery, and enhance public confidence in government financial management.
According to the ministry, digitalization will also cut costs, accelerate approval processes, and improve record-keeping—critical measures for a country navigating both governance challenges and economic recovery.
Observers see the initiative as a continuation of Somalia’s reform agenda that has already enabled the government to meet key debt relief milestones under the Heavily Indebted Poor Countries (HIPC) framework.
Financial analysts say the digital signature system could also help attract investment and strengthen donor confidence by ensuring that government transactions are more secure and verifiable.
The Ministry of Finance confirmed that the rollout will be gradual, with government agencies and key financial departments among the first to adopt the system before expansion to all sectors.
“This is not just a technological shift—it is a governance shift. We are laying the foundation for a financial system that is more resilient, accountable, and future-oriented,” the minister said.
The launch represents one of the most significant steps yet in Somalia’s journey toward building a modern digital state, with finance officials pledging continued reforms to strengthen economic resilience and national development.
