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Turkish bank, Ziraat Katilim formally launches in Somalia, CBS calls it ‘historic moment’

Storyline:Business, National News

GOOBJOOG NEWS|MOGADISHU: Turkish state-owned Ziraat Katilim Bank has kicked off operations in Somalia becoming the first international bank to operate in the country in more than three decades.

The Central Bank of Somalia announced Sunday that Ziraat Katilim Bank had officially launched operations by opening its first branch in the country. The Turkish bank, which is part of the Ziraat Finance Group and operates in over 20 countries was licensed by the Central Bank last July alongside Banque Misr, an Egyptian bank.

The CBS lauded the start of operation by Ziraat noting it will further enhance the economic opportunities and trade between Somalia and Turkey.

CBS governor Abdirahman Abdullahi said the launch demonstrated the reforms and growth in Somalia’s financial sector. “This is a testament to the success of the reforms of Somalia’s finance sector, further enhancing opportunities for investment and development”.

The governor also termed the development as ‘historic’ noting Ziraat Katilim was the first international bank to establish operations in Somalia for more than five decades. “We anticipate the new Bank to add value to the development of Somalia’s financial sector and contribute to the growth of our economy.”

The operationalisation of the Turkish bank will also help to ease international banking transfers easing off the challenge of correspondence banking for many Somalis and investors moving money into the country through formal banking.