Somalia Positions Banks to Access Global Climate Funds in Shift Toward Climate-Ready Economy

GOOBJOOG NEWS | MOGADISHU: The Federal Government of Somalia has taken a key step toward strengthening its climate resilience by equipping domestic banks with the tools to access and manage international climate finance, a move expected to unlock new funding for sectors most exposed to climate shocks.

The National Climate Fund’s first climate finance training for the Somali Bankers Association has laid the groundwork for Somali financial institutions to engage directly with global climate funds and channel investments into agriculture, energy and other climate-sensitive industries.

Officials said the initiative will enable banks to expand lending for adaptation and mitigation projects, helping communities withstand droughts, floods and energy disruptions while supporting economic growth.

NCF Executive Director Liban Obsiye said empowering the banking sector was essential to turning climate commitments into practical action, noting that banks play a central role in mobilising private capital and directing it toward national priorities.

Somali Bankers Association chairman Ahmed Khadar A. Jama said the training strengthens banks’ technical capacity to compete for climate-linked financing as global markets increasingly favour sustainable investments. He added that this shift opens new business opportunities while reinforcing economic stability.

By integrating climate finance into the national banking system, Somalia aims to reduce reliance on external aid, attract long-term investment and build a more resilient economy capable of withstanding intensifying climate risks.

The programme, supported by the UK’s Pioneer Country Trials, marks a transition from policy planning to implementation, positioning Somalia to better leverage global climate funding for lasting national impact.