The United Nations Development Programme (UNDP) in Somalia and Visa have inked a deal that will see the two organizations advance financial inclusion in Somalia.
Under the deal, the two organizations will jointly advance digital financial services for Somalia’s Micro, Small, and Medium Enterprises (MSMEs) and citizens with focus on underserved and vulnerable communities.
The two will also seek to improve public services and digitalize government systems and processes, in addition to raising financial awareness and implementing financial literacy programs for Somali MSMEs and individuals.
“I strongly believe our new partnership with VISA will play a catalytic role in leveraging cutting-edge digital innovative solutions for the public and the private sector to address some of the persistent challenges facing Somalia. We hope many Somali people will benefit from this cooperation through enhanced access to digital financial services and public service delivery,” said Lionel Laurens, UNDP Somalia Resident Representative.
Through the partnership, the East African Community member states will also benefit from capacity building of the privates sector as well as public organizations such as the Central Bank of Somalia and support the National Identification and Registration Authority (NIRA) to scale theSomali digital national ID project.
The deal will similarly help Somalia in accelerating the implementation of the Sustainable Development Goals (SDGs) through digital financial inclusion and digital transformation with relevant institutions in Somalia.
“We are thrilled to collaborate with UNDP Somalia to advance digital transformation and financial inclusion across the region. Utilizing our knowledge in digital payments and financial services, we strive to empower Somali MSMEs and marginalized communities, thereby promoting economic growth and sustainable development,” added Aida Diarra, Visa Senior Vice President and Head of Sub-Saharan Africa.
The first program to be rolled out under the partnership includes am initiative to advance digital payments and financial services focusing on Somalia MSMEs and youth and women entrepreneurs.
According to UNDP, SMEs contribute an estimated 80pc of Somalia employment and 1.2pc of the nation’s GDP but are hindered by barriers, including high-interest rates, lack of collateral and insufficient credit history.
UNDP-VISA joint initiatives will seek to address these challenges by enhancing access to formal financing solutions and innovative financing tools.
UNDP says the collaboration will also support the creation of a robust e-Government infrastructure, aligning with Somalia’s National Transformation Plan and inclusive digital transformation goals.
