Somalia licenses Egyptian, Turkish banks

GOOBJOOG NEWS|MOGADISHU: Somalia has licensed the first two foreign banks to operate in the country in a major leap at opening up the fast-growing banking industry to foreign players.

The Central Bank of Somalia (CBS) announced Sunday it had granted licenses of operation to Banque Misr of Egypt and Ziraat Katilim bank of Turkey. Both banks are state-owned in their respective countries.

CBC governor Abdirahman Abdullahi said the two banks would help in bolstering growth in Somalia’s financial sector. “After an extensive process, we are happy that the Board has approved the licensing application of Ziraat Katilim Bank and Banque Misr. They are both solid banks that will add value to the development of Somalia’s financial sector and contribute to the growth of our economy,” Abdullahi said.

CBS said in a statement the licensing of the two banks was a ‘testament to the success of the reform of Somalia’s finance sector, further enhancing opportunities for investment.’

The Central Bank has since licensed 13 local commercial banks and seven money transfer companies in addition to three mobile money service providers.